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The anonymous blockchain researcher ZachXBT has criticized the decision of the cryptocurrency exchange Kraken to begin trading MemeCore tokens. The basis for this criticism was a substantial transfer of these coins amounting to $7.9 million immediately following the listing.
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ZachXBT noted that the tokens from the MemeCore project were initially sent to deposit addresses on Kraken, and subsequently distributed among 18 new wallets. Collectively, these wallets now hold approximately 11.7 million tokens valued at nearly $40 million.
Furthermore, all activity originates from a single address, which the crypto investigator speculated is linked to the MemeCore team. This wallet received a significant portion of tokens at launch and later transferred millions of coins to addresses registered on other exchanges.
ZachXBT also pointed out the limited circulation of MemeCore tokens in relation to the total supply. According to the blockchain analyst, this could heighten price volatility. The researcher claims that insiders and early holders control over 90% of the MemeCore supply. This structure allows a small group to influence pricing, insists ZachXBT.
Over the past month, the token has surged by more than 145%, with its market capitalization reaching $7 billion. However, on Monday, April 20, the price plummeted by 27%.
MemeCore is a layer-one blockchain designed for the creation of meme coins. The project is positioned as a platform where meme coins “go beyond short-term speculation and become a full-fledged cryptocurrency.”
ZachXBT’s investigation was published just days after the collapse of the RaveDAO token, which lost over 95% of its value within 24 hours. The anonymous blockchain sleuth accused the DAO team of insider manipulation.
