Onchain investigator ZachXBT has identified Kraken as a central platform enabling the manipulation of the M token, pointing to a staggering $6.5 billion market capitalization supported by merely $66 million in total trading volume from the project’s native application. Additionally, onchain data reveals that wallets linked to insiders control more than 90% of the token’s supply.
Kraken Joins Bitget and Binance in Expanding Probe
On April 20, ZachXBT extended his ongoing manipulation investigation into the M token by naming Kraken alongside previously flagged exchanges Bitget and Binance. The findings stemmed from a detailed review of onchain transaction flows, which suggested that Kraken received M tokens as part of listing fees or liquidity arrangements, effectively rendering the exchange complicit in the suspected price manipulation.
The M token, associated with the Memecore project, currently holds a market cap of approximately $6.5 billion, placing it among the top 20 tokens on major tracking platforms. However, ZachXBT highlighted a critical anomaly: “The greatest achievement is $66 million total trading volume on an app, yet the token is at $6 billion market cap.” Such a disconnect between trading activity and valuation is a classic red flag for market manipulation.
Insider Concentration and Questionable Supply
Onchain data analyzed by ZachXBT indicates that wallets tied to project insiders control more than 90% of M’s total supply. In a direct challenge to the Memecore team, he asked: “Please provide a single data point to support your $6B market cap at a top 20 token and why insiders hold >90%.” This extreme concentration raises serious questions about price discovery and potential wash trading.
ZachXBT’s investigation follows a similar pattern to a previous thread on the RAVE token, which he described as “one of the most blatant examples of manipulation” before it collapsed 95% from its peak. Other tokens flagged for additional scrutiny include SIREN, MYX, COAI, PIPPIN, and RIVER. He argues that major exchanges continue listing such tokens despite visible red flags in their price action, exacerbating market integrity issues.
Call for Exchange Action and Industry Accountability
ZachXBT has urged the crypto community to go beyond social media campaigns and apply direct pressure on exchanges to freeze manipulator accounts and distribute recovered funds to affected users. As of now, Kraken, Binance, and Bitget have not been charged with any wrongdoing nor issued public statements regarding the allegations.
This case underscores the growing role of onchain analysis in uncovering market manipulation, but also highlights gaps in exchange due diligence. With M token’s market cap vastly exceeding its actual trading volume and insider dominance remaining severe, investors are advised to exercise extreme caution.