Prominent Onchain Sleuth ZachXBT Demands MemeCore Justify Massive Valuation and Extreme Token Concentration

ZachXBT, the respected onchain investigator, escalated scrutiny on MemeCore's M token Monday, publicly demanding the project justify its top-20 valuation while questioning why insiders control over 90% of the circulating supply. This marks another chapter in a broader crypto investigation into suspicious tokenomics across multiple projects.

The Challenge

"Please provide a single data point to support your $6B mkt cap at a top 20 token and why insiders hold >90% of supply," ZachXBT posted on X, directly challenging MemeCore—a layer-1 blockchain positioning itself as infrastructure for the "Meme 2.0 economy." The public pressure reflects growing concerns about token distribution practices in the crypto market.

Market data paints a conflicting picture of MemeCore's actual valuation. CoinMarketCap ranked M at No. 21 with approximately $4.33 billion market cap on Monday, while CoinGecko valued it slightly higher at No. 20 and roughly $5.97 billion. These discrepancies highlight the lack of standardized valuation methodology across major crypto intelligence platforms.

Supply Concentration Red Flags

Onchain analysis tools reveal concerning concentration patterns. Bubblemaps data showed wallet "0x8b8" holding 50 million M tokens worth approximately $178 million, with a Binance deposit address appearing as the largest visible holder. However, Bubblemaps analyst 0xToolman offered a more nuanced interpretation to Cointelegraph, suggesting the pattern resembles team-held allocations rather than evidence of coordinated manipulation—though cautioning that some tokens may not yet be circulating.

The distinction matters significantly for portfolio risk assessment and market intelligence. Team allocations represent different regulatory and liquidity concerns than actively traded supply, particularly regarding potential selling pressure.

Broader Investigation Into Market Manipulation

ZachXBT's MemeCore challenge sits within a much larger investigation into suspicious price action across multiple altcoins. The investigator previously flagged SIREN, MYX, COAI, PIPPIN, and RIVER as projects exhibiting "highly questionable price movements," signaling a systematic investigation into potential market manipulation on major exchanges.

This broader crypto analysis follows the spectacular collapse of the RAVE token. ZachXBT accused RaveDAO of orchestrating a pump-and-dump scheme after RAVE soared from $0.25 to nearly $28 within days before crashing over 80%. The token has since plummeted 92% over the past week, trading above $0.69 at Monday's market close. While RaveDAO denied involvement, both Binance and Bitget confirmed they're reviewing the situation, taking the allegations seriously enough to conduct formal investigations.

While ZachXBT hasn't published definitive blockchain data proving the 90% insider holding claim for M token, his track record of rigorous onchain analysis suggests he's building toward documented evidence. The public pressure campaign appears designed to either obtain transparency or build momentum for deeper investigation.

Cointelegraph has reached out to MemeCore for comment on token distribution specifics and valuation justification but has not yet received a response.