On-chain investigator ZachXBT has offered a $25,000 bounty for information leading to responsible parties behind alleged insider manipulation of MemeCore's native token M. The bounty comes after ZachXBT's latest analysis revealed that the aggregate insider control of the M token has been estimated at about 99.6%, significantly higher than his previous claims of over 90% supply concentration. The investigator has intensified scrutiny by questioning why Kraken listed M on July 3, 2025, for spot trading and how the exchange passed due diligence given the concerning supply distribution. ZachXBT's latest findings show that only around 230 million tokens are reportedly unlocked, which is nearly six times less than reported, with platforms listing approximately 1.29 billion tokens in circulation but only a fraction actually accessible to the market. According to Cryptopolitan, insiders and related wallets held about 99.6% of the circulating supply, leaving just 0.0115% of the total supply open for non-insiders to purchase (around $4 million at maximum valuations).
MemeCore has achieved a 35% surge to $3.88, pushing its market capitalization to $6.37 billion in a single day, representing an increase of $1.29 billion in 24 hours. The rally broke a key resistance level that had held the token since late November, signaling a shift from consolidation to momentum. However, this breakout occurs against the backdrop of critical allegations from pseudonymous blockchain investigator ZachXBT, who claims that insiders control over 90% of the total M token supply. The investigator has challenged the project to provide verifiable, on-chain data to address these claims, demanding proof that the project's multi-billion dollar valuation is supported by a decentralized distribution. When MemeCore celebrated being recognized by Grayscale, ZachXBT replied stating "Please provide a single data point to support your $6B market cap at a top 20 token and why insiders hold >90% of supply."
ZachXBT's latest investigation has revealed $7.9 million in suspicious withdrawals to 18 newly created addresses holding 11.7 million M tokens, worth approximately $39.8 million. A suspected MemeCore team wallet also sent 5.3 million M tokens to two Kraken deposit addresses on July 3, 2025. The investigator questions "Why did Kraken list $M (Memecore) on July 3, 2025, for spot and how did it pass due diligence?" Given that Kraken is one of the few venues supporting M spot trading, ZachXBT notes that the exchange's listing decision and due diligence process are material questions, especially given the latest exposé. As of the time of writing, M was trading for $3.54, down by over 0.3% over the past 24 hours, with the market capitalization falling to $4.57 billion. Cryptopolitan reports that TRM Labs' on-chain visualization showed multiple large transactions flowing from Kraken hot wallets to groups of withdrawal addresses, highlighting the scale of suspicious activity.
The market's reaction to similar allegations has been swift and severe, with ZachXBT's claims triggering an 8.29% price correction when the token fell from around $3.40 to approximately $3.18 following publication of his claims. Latest data reveals that the largest holder is a Binance deposit address controlling approximately 41.3% of the total supply, while the second-largest holder, wallet 0x8b8, holds 21.77% of the supply. The token's Sharpe Ratio spiked to 5 over the last 30 days, a classic warning sign that short-term traders are taking profits, potentially setting the stage for a pullback after such an aggressive breakout. The setup creates a classic tension: a breakout valuation built on flow and momentum, but resting on a foundation of supply that is highly vulnerable to coordinated sell-off. According to Cryptopolitan, the token's market cap reached $6 billion (with fully diluted valuations sometimes exceeding $18 billion), but on-chain illiquidity was significant.
The immediate test for MemeCore is volume sustainability, with the breakout fueled by a 146% surge in daily trading volume to around $27.26 million. For the momentum to hold, this flow must be sustained, with a critical threshold being whether volume can consistently exceed $30 million. If volume fails to reach this level, the rally may lack the underlying liquidity to support the new all-time high, leaving the price vulnerable to a swift reversal. The 24-hour trading volume of $26.2 million translates to a volume-to-market-cap ratio of just 0.39%, suggesting either strong holder conviction or constrained liquidity. Historical precedent shows the danger of ignoring concentration warnings, with ZachXBT pointing to tokens like RaveDAO, which entered the top 15 by market cap and then fell 95% in hours after rapid ascent.
