MemeCore's M token lost nearly three-quarters of its value on Wednesday, wiping out close to $3 billion in market capitalization as the cryptocurrency fell from around $2.92 to a low of $0.51 before stabilizing near $0.74, according to CoinDesk data. The project's development team issued no public statement acknowledging the crash and did not respond to requests for comment. The token had been flagged months earlier by blockchain investigator ZachXBT for potential price manipulation, heavily concentrated token distribution, and suspicious withdrawal patterns totaling approximately $7.9 million from Kraken exchange.
MemeCore Token Drops 74% in Single Trading Session
The M token's market capitalization fell from approximately $3.8 billion to around $969 million during the crash, pushing the asset below the $1 billion threshold. Trading volume across the 24-hour period registered at $21 million — a figure notably thin relative to the magnitude of the price movement. The token found support near $0.74 by the time Asian markets opened on Thursday morning.
No Technical Exploit or Hack Identified as Trigger
No reports emerged of technical compromises or smart contract exploits connected to the price decline. MemeCore's development team did not respond to requests for comment and issued no public statement acknowledging the crash as of Thursday morning across Asian time zones. Without a confirmed catalyst such as a regulatory announcement or whale wallet liquidation, attention turned to structural market characteristics and prior warnings.
ZachXBT Flagged Manipulation Concerns in April
Blockchain investigator ZachXBT questioned in April why Kraken had listed M for spot trading in July 2025 and whether the exchange had conducted proper due diligence. He alleged that project insiders had manipulated the price to manufacture a $6 billion market capitalization and an $18 billion fully diluted valuation. ZachXBT pointed to roughly $7.9 million in withdrawals from Kraken flowing into 18 newly created wallet addresses, describing the pattern as suspicious. He claimed that a wallet address he traced to the MemeCore team received 200 million M tokens at launch, with millions of those subsequently transferred to Kraken deposit addresses. These claims have not been independently verified. ZachXBT noted that Kraken was among only a handful of platforms offering M spot trading. He highlighted MemeCore's reliance on InfoFi tactics — compensating users to post promotional content on social media.
Concentrated Holdings and Thin Liquidity Amplified Price Decline
The $21 million in trading volume on a token that carried a $3.8 billion valuation indicated minimal market depth. Concentrated token holdings meant a small number of large sellers could dominate order flow. Restricted exchange availability limited entry points for buyers. Once selling pressure began, insufficient buy-side depth existed to absorb orders, causing the price to fall nearly vertically.
FAQ
What caused the 74% price drop of the MemeCore M token?
No official explanation has been provided by MemeCore. The crash is most closely linked to low liquidity, heavily concentrated token holdings, and prior warnings by blockchain investigator ZachXBT of possible insider price manipulation. Without a confirmed catalyst such as a hack or regulatory action, structural market fragility appears to be the most supported explanation.
What did blockchain investigator ZachXBT warn about regarding MemeCore?
In April, ZachXBT warned of possible insider price manipulation, alleging that insiders had inflated M's market capitalization to $6 billion. He flagged approximately $7.9 million in suspicious withdrawals from Kraken to 18 newly created wallets, and claimed a wallet linked to the MemeCore team received 200 million M tokens at launch before transferring millions of them to Kraken deposit addresses. These claims remain unverified through independent investigation.
How did liquidity affect the price decline of the MemeCore token?
Low liquidity and trading restricted to a small number of exchanges meant there was insufficient buy-side depth to absorb selling pressure. When selling began, the price fell nearly vertically because so little genuine market infrastructure existed to slow it. The $21 million in 24-hour trading volume on a token with a former $3.8 billion market cap illustrates how thin that liquidity truly was.
