On-chain sleuth ZachXBT has raised red flags over cryptocurrency exchange Kraken's decision to list Memecore (M) for spot trading, citing evidence of suspicious financial activity. According to ZachXBT, a total of $7.9 million in questionable funds was withdrawn from Kraken to 18 newly created addresses, which now collectively hold 11.7 million M tokens, valued at approximately $39.8 million.
Soaring Market Cap Raises Concerns
The token's price has been artificially inflated, pushing its market capitalization to $6 billion and its fully diluted valuation to a staggering $18 billion. ZachXBT warned that such price manipulation often precedes dumps or coordinated exits, casting doubt on the token's underlying fundamentals.
Kraken Among Few Exchanges Offering M Spot Trading
Notably, Kraken is one of the few major exchanges that have listed M for spot trading (M/USDT). Despite the analyst's warning gaining traction on social media, Kraken has yet to publicly address the allegations or the unusual fund movements. The situation has reignited debates over exchange due diligence practices.
Memecore Team Highlights Growth Metrics
In response, the Memecore team emphasized recent achievements: its Launchpad has generated $66 million in total trading volume, and its InfoFi campaign acquired thousands of users. However, these metrics have done little to assuage skepticism. Analysts argue that unless the project can credibly explain the $7.9 million withdrawal anomaly, its claims of organic growth may be overshadowed by manipulation risks.
As of press time, the M token price remains relatively stable, but market sentiment has turned increasingly cautious. Investors are urged to conduct thorough research and remain vigilant against potential volatility.