ZachXBT flags Memecore M token after RAVE collapse investigation

On-chain investigator ZachXBT questioned Kraken’s July 3, 2025 listing of Memecore’s native token M on July 3, 2025, asking why the exchange listed the token for spot trading and how it passed due diligence. The scrutiny follows ZachXBT’s analysis of the RAVE token collapse, which he characterized as insider manipulation across centralized exchanges.

Memecore M Token Under Investigation

Memecore markets itself as a layer-1 blockchain for the “Meme 2.0 economy.” According to CoinMarketCap and CoinGecko data cited in the article, the $M token carries a market capitalization of approximately $6 billion and a fully diluted valuation (FDV) of around $35.5 billion, placing it in the top 25 on major tracking platforms. As of the time of writing, M was trading for $3.54, with market capitalization fallen to $4.57 billion.

ZachXBT’s analysis revealed significant concentration of token supply. While approximately 1.29 billion tokens are listed in circulation on tracking platforms, only around 230 million are reportedly unlocked—nearly six times less than reported. The aggregate insider control of the M token has been estimated at about 99.6%.

When Memecore announced recognition by Grayscale on X, ZachXBT replied: “Please provide a single data point to support your $6B market cap at a top 20 token and why insiders hold >90% of supply.” In another post, he wrote: “The greatest achievement is $66M total trading volume on an app yet the token is at $6B market cap lol.”

Suspicious Kraken Activity

ZachXBT’s on-chain findings specific to Kraken traced $7.9 million in suspicious withdrawals to 18 newly created addresses holding 11.7 million $M tokens, then worth $39.8 million. A suspected Memecore team wallet also sent 5.3 million $M to two Kraken deposit addresses on July 3, 2025. Kraken is noted as one of the few venues supporting M spot trading, making the exchange’s listing decision a material question given these findings.

RAVE Token Collapse: The Precedent

ZachXBT’s analysis of the RAVE token collapse, detailed in an April 19 post-mortem, established the pattern now being applied to Memecore. RAVE was launched in December 2025 on Binance Alpha with a one-billion token supply. The token rallied from $0.25 to nearly $28, then crashed more than 95% in hours.

Addresses linked to the initial distribution controlled around 95% of RAVE supply, with a further 3.1% in the hands of Bitget users suspected to be insiders and 0.34% at Gate, leaving retail traders holding minimal holdings. According to ZachXBT, a $6 billion market cap had been erased on just $52 million of 24-hour liquidations, a ratio he said pointed to a manufactured and structurally unsustainable valuation.

Binance, Bitget, and Gate each publicly acknowledged ZachXBT’s call to investigate. RaveDAO denied involvement. OKX’s CEO Star confirmed on X that OKX’s risk engine had performed as designed during the RAVE move and pledged $25,000 to ZachXBT’s bounty.

ZachXBT stated that he found it unlikely that the suspicious activity had not been visible to exchange compliance teams before he raised it publicly, and pointed out that each day of delayed intervention meant retail traders absorbing losses while platforms collected fees on the volume.

Broader Pattern of Manipulation

According to ZachXBT, RAVE was not an isolated case. He identified other projects with highly questionable price action: SIREN, MYX, COAI, M, PIPPIN, and RIVER.

ZachXBT has offered a $25,000 bounty for information leading to the responsible parties behind the suspected manipulation.

Operation Atlantic Context

ZachXBT’s scrutiny of exchange listing practices comes as Kraken announced support for Operation Atlantic, a joint operation by the US Secret Service, the UK’s National Crime Agency, and Canadian authorities that identified more than $45 million in suspected criminal proceeds and flagged over 20,000 potential victims.