Prominent on-chain investigator ZachXBT has flagged Kraken as a key venue in the alleged manipulation of the M token, associated with the Memecore project. On April 20, he expanded his ongoing probe to include Kraken alongside Binance and Bitget, citing glaring discrepancies in the token’s market data.
Stark Contrast Between Market Cap and Volume
According to ZachXBT’s analysis, the M token currently boasts a market capitalization of approximately $6 billion, ranking it among the top 20 tokens by that metric. However, total on-chain trading volume within the project’s native application stands at just $66 million—a dramatic imbalance that the investigator calls a red flag. Furthermore, blockchain data reveals that wallets linked to insiders control more than 90% of the total token supply. ZachXBT directly challenged the Memecore team: “Please provide one data point to support your $6 billion market cap and why insiders hold over 90% of the tokens.”
Exchange Role Under Scrutiny
The investigation shows that M tokens were transferred to Kraken, Binance, and Bitget, likely as part of listing fees or liquidity arrangements. ZachXBT argues that these exchanges facilitated the manipulation by allowing the token to trade despite obvious structural risks. He draws parallels to the RAVE token case, which he previously described as “one of the most blatant examples of manipulation.” RAVE collapsed 95% from its peak after similar warning signs. He also lists SIREN, MYX, COAI, PIPPIN, and RIVER as projects warranting further review.
ZachXBT advocates for exchanges to proactively freeze manipulator accounts and redistribute recovered funds to affected users. As of now, Kraken, Binance, and Bitget have not responded to the allegations or issued public statements. The episode underscores ongoing debates about exchange due diligence and the role of on-chain transparency in detecting market abuse.