MemeCore Collapse: Token M Plunged 76% in a Day, Wiping Out Billions in Market Cap
The meme coin market has once again demonstrated its extreme volatility and unpredictability. The MemeCore (M) token experienced a catastrophic crash, losing over 76% of its value in just 24 hours. This event wiped billions of dollars from the asset's market capitalization and raised serious questions about its liquidity and legitimacy.
Anomalous Collapse Amid a Calm Market
According to monitoring data I analyzed, the price of M plummeted from $2.66 to an intraday low of $0.50. At the time of writing this analysis, the token was trading around $0.6858, still representing colossal losses of 76.38% in a single day. Notably, the crash occurred against a backdrop of a relatively stable market: the total cryptocurrency market capitalization fell by only 1.64% over the same period. This indicates that M's decline was driven solely by internal factors, not a broader market downturn.
As a result of the crash, MemeCore's fully diluted valuation (FDV) dropped to $3.69 billion, while its market capitalization shrank from $3.5 billion to less than $903 million. The token fell to 72nd place in the global ranking, highlighting the scale of losses for investors.
Warnings from ZachXBT and Suspicions of Manipulation
Prominent on-chain analyst ZachXBT had previously commented on the situation surrounding MemeCore. He pointed to an anomalous concentration of tokens and misleading users to artificially boost metrics. Following the crash, his warnings have once again become a hot topic of discussion within the community.
The analyst noted that, according to Arkham, there had been no on-chain transactions with the token exceeding $50,000 on the BNB Smart Chain (BSC) for over two weeks. Moreover, the total on-chain liquidity of M, according to Dexscreener, does not exceed $100,000. These are extremely alarming signals, indicating very low real liquidity for the asset, despite its presence on major exchanges.
ZachXBT also questions why platforms like Binance and Bybit added M to perpetual contracts, while Kraken and Bitget allowed spot trading of what he considers a clearly manipulated token. He rightly notes that such actions undermine the reputation of the entire industry and harm retail investors.
My expert opinion: The MemeCore crash is a classic example of a "pump and dump" scheme, made possible by low liquidity and potentially coordinated actions by large holders. The lack of real on-chain activity and large transactions for weeks is a red flag that experienced traders should not ignore. Investors should be extremely cautious with tokens whose market capitalization is not backed by real trading volume and distribution. The current situation is a harsh reminder of the risks associated with low-liquidity meme coins.