On June 25, MemeCore faced a dramatic decline of over 74% within a single day, plummeting to around $0.7169, according to price data from crypto.news.
Summary
- The 75% drop in MemeCore erased billions in market capitalization, pushing the token below crucial market-cap thresholds.
- ZachXBT’s previous warnings resurfaced as traders expressed concerns about supply concentration, exchange listings, and insufficient liquidity.
- The M chart continues to exhibit bearish tendencies, with the RSI signaling oversold conditions and MACD indicating ongoing selling pressure.
Throughout this time, the token fluctuated between $0.5055 and $2.92, with a 24-hour trading volume of about $22.3 million.
The crash lowered MemeCore’s market cap to approximately $940.9 million, while its fully diluted valuation fell to around $3.85 billion. In the last month, the token has decreased by over 76%, and has declined more than 75% in the past week.
The price of M dropped from nearly $3 to about $0.50 within just a few hours, erasing nearly $3 billion in market capitalization. There were no verified reports of an exploit, hack, or any official announcements that could explain this sudden drop.
This decline has caused MemeCore to exit the ranks of large-cap tokens after previously trading at much higher valuation levels. The token achieved an all-time high of $4.82 on April 24, prior to this current downturn.
ZachXBT Raises Concerns Post-Crash
On Telegram, on-chain analyst ZachXBT remarked that MemeCore’s fully diluted valuation sank from around $14 billion to $3.8 billion after the abrupt 75% decline on centralized exchanges. He noted that he, along with Mlm and Wazz, had previously voiced concerns regarding supply concentration and seemingly deceptive user-growth tactics.
Furthermore, ZachXBT pointed out that Arkham data revealed no transfers over $50,000 on BSC in more than two weeks. He underlined that Dexscreener data indicated total on-chain liquidity on BSC was below $100,000.
He questioned the rationale behind Binance and Bybit’s listings of M perpetuals, as well as the listings by Kraken and Bitget for M spot. According to him, such “highly manipulated tokens” harm the industry and erode value for retail investors.
ZachXBT also addressed MemeCore representative Rudy Rong on X, asking, “How many retail investors lost funds due to the MemeCore team’s $M manipulation?” As of this writing, MemeCore had not released a clear public statement regarding the crash.
Previous Warnings About Supply
In April, crypto.news reported that ZachXBT had previously pressed MemeCore for clarification on how M achieved a multibillion-dollar valuation while a large portion of its supply appeared concentrated among a select few holders. He sought data to substantiate the project’s market cap and claims about insider holdings.
The report highlighted blockchain data indicating that a Binance deposit address was the top holder of MemeCore, controlling around 41.3% of the supply. Another wallet contained 50 million M tokens, valued at approximately $178 million, accounting for 21.77% of the total supply.
The same article analyzed MemeCore’s dilution risk by comparing it to Shiba Inu, arguing that MemeCore’s fully diluted valuation significantly surpassed its circulating market cap, leading to potential future supply risk.
It noted that only a fraction of MemeCore’s supply was actively traded, implying that upcoming unlocks and pressure from the fully diluted valuation could profoundly affect price movements if demand fails to keep pace.
The recent crash has intensified these supply concerns for traders. A token can quickly decline when liquidity is scarce, supply is concentrated, and selling occurs on centralized exchanges.
Technical Indicators Remain Weak
The daily chart for M/USDT reveals a significant breakdown. The price fell from about $2.84 to $0.692, marking a decline of approximately 75.63%. The intraday low near $0.524 shows that buyers were unable to maintain the previous range.
This movement broke the trading range of $2.80 to $3.20, changing the short-term trend from stable trading to a decisive bearish shift. Volume surged to about 1.49 million, indicating that the selloff was coupled with substantial trading activity.
The RSI has dropped to 18.18, considerably below its moving average of around 45.71, placing M firmly in oversold territory. While an oversold RSI may suggest a brief corrective bounce, it does not confirm a recovery following such a steep drop.
The MACD indicator also remains bearish, with the MACD line at about -0.2260, below the signal line at roughly -0.0769. The negative histogram around -0.1491 indicates that sellers maintain momentum in this market.
For a more favorable outlook, M would need to reclaim lost levels and sustain them. A return above the broken $2.80 range is much more crucial than a minor relief bounce. Until then, the technical setup appears unfavorable.
Exchange Scrutiny Increases
This recent crash has highlighted the need for increased exchange oversight. In April, ZachXBT questioned Kraken’s choice to list M for spot trading, citing $7.9 million in suspicious withdrawals directed to 18 newly created addresses and suspected team-linked transfers to Kraken deposit addresses.
The April alert alleged that insiders inflated M’s market cap to $6 billion, resulting in a fully diluted valuation of $18 billion. These claims remain unverified by all parties involved.
The pressing question now is whether the platforms that listed M appropriately evaluated factors such as supply concentration, liquidity depth, and market dynamics before launching M markets. Perpetual futures can introduce further volatility when the spot market is weak or when actual liquidity levels fall short of reported market cap figures.
This situation demonstrates how quickly a high-FDV token can decline when investor confidence dips. While MemeCore continues to be traded, the crash has raised substantial concerns regarding liquidity, supply management, and whether exchanges adequately safeguarded users prior to listing M.
Disclosure: This article is not intended as investment advice. The information and materials presented on this page are solely for educational purposes.
