MemeCore’s native M token collapsed 80% on Thursday, plunging from nearly $3.00 down to the $0.50 range. The sudden price drop erased almost $3 billion in market value in a matter of hours, according to a detailed report by CoinDesk. Trading data shows the sell-off occurred on relatively low volume without any confirmed technical exploit or protocol hack.
The collapse follows months of public scrutiny from on-chain investigator ZachXBT. He previously challenged MemeCore developers to justify the project’s $6 billion peak valuation. Blockchain data indicated up to 99% of the circulating token supply was controlled secretly by insiders rather than retail investors. ZachXBT had issued prior warnings regarding this extreme supply concentration.
Major exchanges have not formally halted trading or intervened publicly. The M token remains active for spot trading despite the multi-billion dollar wipeout.
What the MemeCore Liquidation Means for Kraken
The immediate financial fallout centers on centralized exchange listing standards. The incident closely mirrors the recent RaveDAO token collapse, where the RAVE token plummeted over 95% after analysts flagged similar insider supply hoarding. This parallel has triggered ongoing scrutiny surrounding Kraken and its initial review process when it approved the M token for spot trading in July 2025.
Retail investors rely on tier-one exchange listings as an implicit verification of asset decentralization. When a token drops 80% on low volume due to centralized wallet distribution, the hosting exchanges face direct reputational damage. The lack of an immediate trading halt on Thursday indicates platforms are currently treating the collapse as a standard market liquidation event rather than a security breach.