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▲ MemeCore (MemeCore, M)/Source: X ©
A cryptocurrency that recently lost billions of dollars in value after an indiscriminate crash of up to 75% in just a few hours has suddenly surged by over 80% in a single day, creating a strange market situation that has fueled strong suspicions of manipulation regarding its background.
According to the cryptocurrency media outlet Watcher.Guru on July 2 (local time), the price of MemeCore (M) on the cryptocurrency data platform CoinGecko surged by 84.8% today and recorded a 93.4% increase on a weekly chart basis, placing it among the top gainers. This is a dramatic turnaround considering that its Fully Diluted Valuation (FDV) collapsed from $14 billion to $3.8 billion in just a few hours at the end of June, causing a massive amount of capital to evaporate.
However, experts are raising strong doubts about the purity of this rebound. Famous crypto detective ZachXBT directly targeted the project immediately after the crash, revealing that insiders held over 90% of the total supply. He characterized this incident as typical insider market manipulation and questioned major exchanges like Kraken on how they passed such a risky coin through due diligence and listed it, criticizing that numerous individual investors suffered massive losses due to insider manipulation.
Amidst the mystery of these strong suspicions, it has not yet been clearly determined whether the current surge rally is due to abnormal insider trading or simply the result of an influx of buying pressure from individual investors who seized the opportunity of the sharp decline. However, a clear and reasonable explanation for why this particular coin is surging at this specific time has not been presented.
Market experts unanimously agree that it is highly probable that this controversial cryptocurrency will soon face another sharp price correction. This is because the overall cryptocurrency market environment currently remains bearish, and volatility is also extremely high. Even Bitcoin (BTC), the market leader, is struggling to break through the $60,000 mark, making it difficult for individual altcoins to defy the overall market trajectory.
To make matters worse, the possibility of additional interest rate hikes later this year is emerging, which is expected to put further pressure on the overall risk asset market. Accordingly, market experts strongly warn that high-risk assets surrounded by fatal controversies, such as suspicions of insider manipulation, could experience another flash crash (plunge) due to large-scale position liquidations even if investor sentiment weakens slightly in the future.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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