MemeCore Rallies 20% as On-Chain Data Reveals 90% Insider Supply

The token is surging on bullish catalysts, but on-chain data reveals a concentration of tokens that mirrors a recent $4.75 billion memecoin collapse.

MemeCore’s M token jumped over 20 percent to $4.28 on April 22, extending a 145 percent monthly gain even as on-chain data revealed more than 90 percent of its supply is controlled by insiders, according to investigator ZachXBT.

"Why did Kraken list $M (Memecore) on July 3, 2025 for spot and how did it pass due diligence? Insiders have manipulated the price to $6B market cap," ZachXBT said in an April 20 post on X, highlighting $7.9 million in withdrawals to 18 newly created wallets.

The warning comes as M’s market capitalization climbed above $7 billion, a figure ZachXBT and other analysts suggest is inflated due to incorrect circulating supply data on major trackers. Despite the token’s top-25 market cap rank, daily trading volume remains below $30 million, a sign of low organic demand, according to data from Santiment.

The extreme insider concentration raises the risk of a sudden price collapse similar to the 98 percent crash of RaveDAO (RAVE), which shared a similar on-chain structure before its market cap fell by $4.75 billion. The key test for MemeCore is whether it can maintain its rally as scrutiny over its token distribution intensifies.

A Rally Fueled by Shorts and Upgrades

The token’s defiance in the face of bearish on-chain data is attributed by some analysts to a potential short squeeze. After ZachXBT’s warning, which coincided with the collapse of the similarly structured RAVE token, traders may have rushed to short M. With insiders controlling the vast majority of the supply, liquidity is thin, making it easier to drive the price up and force short-sellers to buy back at a loss, which adds more fuel to the rally.

This technical pressure is layered on top of fundamental catalysts that support a bullish narrative. On March 25, the MemeCore network completed a hardfork that implemented account abstraction, cutting average gas fees by a factor of 100 and making the chain more attractive for high-frequency activity. The project is also pursuing a Virtual Asset Service Provider (VASP) license in South Korea through the acquisition of a KOSDAQ-listed company, a move that could open up direct fiat-to-crypto trading pairs.

Conflicting Valuations and Exchange Support

A key point of contention is MemeCore's valuation. While BeInCrypto reported a market cap over $7 billion, CCN noted that CoinGecko shows a $6 billion figure while CoinMarketCap lists it closer to $4.85 billion. On-chain analysts argue all these figures may be misleading, as they are based on a circulating supply of 1.29 billion tokens, whereas only about 230 million are actually unlocked.

This discrepancy highlights the power held by the small group of insiders and the exchanges that support the token. According to on-chain data, wallets linked to Binance, the world's largest crypto exchange, reportedly hold over 41 percent of the MemeCore supply. The token’s listing on major exchanges like Kraken and the significant holdings by Binance-affiliated wallets provide a level of structural support that, for now, is overriding concerns about its concentrated supply and low organic use.

This article is for informational purposes only and does not constitute investment advice.