ZachXBT Targets MemeCore Over Alleged Market Cap Manipulation

TL;DR

• Supply Concerns: ZachXBT questioned MemeCore’s valuation and the possibility that insiders control more than 90% of supply, raising liquidity and volatility risks.
• Market Cap Debate: Critics argue that MemeCore’s multibillion-dollar rank may not reflect true circulating conditions, especially with shallow order books and limited float.
• Transparency Push: Traders increasingly expect clear distribution data, and the scrutiny suggests MemeCore must provide stronger proof of wallet ownership and circulating supply to avoid being treated as a short-term speculative token.
  

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Fresh scrutiny hit MemeCore’s M token after on-chain investigator ZachXBT challenged the project’s multibillion-dollar valuation and the concentration of its token holdings. His central claim is that insiders may control more than 90% of supply, a structure that can leave outside buyers exposed to abrupt swings and thin real liquidity. The discussion has unfolded in a fast-moving social thread that continues to draw market attention.

Why did Kraken list $M (Memecore) on July 3, 2025 for spot and how did it pass due diligence?

$7.9M in suspicious Kraken withdrawals to 18 newly created addresses with 11.7 $M sitting total (valued at $39.8M now).

Insiders have manipulated the price to $6B market cap ($18B FDV)… pic.twitter.com/pL7oroZ4lJ

— ZachXBT (@zachxbt) April 20, 2026

Questions Around Supply Control

ZachXBT pressed for clearer disclosures on who controls what, how the valuation is being calculated, and what prevents large holders from moving the market. He argued that headline figures alone do not reflect the real conditions surrounding MemeCore, especially if most tokens sit in a small cluster of wallets. The project has been urged to address the concentration issue directly instead of relying on its stated $6B rank.

Market Cap Versus Circulating Reality

At the center of the dispute is a familiar memecoin challenge: market caps can appear enormous when price is multiplied by total supply, even if most tokens are not meaningfully circulating. Critics say this dynamic can distort perceptions of MemeCore, particularly when price discovery happens on shallow order books. Limited float can make valuations look stronger than the underlying liquidity supports.

Distribution Risks and Sensitivity

ZachXBT’s focus is not just on the size of the number but on what it implies about distribution. If a team, early wallets, or affiliated entities control the bulk of supply, then MemeCore may be unusually sensitive to a handful of decisions involving vesting, transfers, or coordinated selling. Such concentration can magnify volatility and leave traders reacting to moves they cannot anticipate.

Transparency Expectations Rising

The episode arrives during a period when traders are treating memecoins as high-beta plays, and social momentum often outruns fundamentals. In that environment, supply transparency matters more than ever. Market watchers noted that calls for proof, wallet labels, vesting schedules, exchange allocations, and a clear accounting of circulating supply are becoming baseline expectations. Projects like MemeCore that cannot clearly explain distribution risk are viewed as short-term trades rather than durable communities.