MemeCore (M) Skyrockets 84% in One Day After a Crash, Simple Rebound or Market Manipulation?

▲ 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 over 80% in a single day, creating a bizarre 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 crypto data platform CoinGecko soared by 84.8% today alone, and also recorded a 93.4% increase on a weekly chart, ranking among the top gainers. This is a dramatic reversal 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 massive funds to evaporate.

However, experts are raising strong doubts about the purity of this rebound. Famous crypto detective ZachXBT targeted the project immediately after the crash, revealing that insiders held over 90% of the total supply. He characterized the incident as a typical insider market manipulation and questioned major exchanges like Kraken on how such a risky coin passed due diligence and was listed. He criticized that countless individual investors suffered massive losses due to insider manipulation.

Amidst the enigma 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 low-price buying from some individual investors who seized the opportunity of the sharp decline. However, a clear and rational reason why this coin is surging specifically at this time has not been presented.

Market experts unanimously agree that such a controversial cryptocurrency is highly likely to face another sharp price correction soon. This is because the overall cryptocurrency market environment currently remains bearish, and volatility is also extremely high. With Bitcoin (BTC), the market leader, even struggling to break the $60,000 mark, it is difficult for individual altcoins to defy the overall market trajectory.

To make matters worse, the possibility of additional interest rate hikes by the end of this year is emerging, which is expected to put further pressure on the broader risk asset market. Accordingly, market experts strongly warn that in the case of high-risk assets embroiled in fatal controversies such as insider manipulation allegations, even a slight contraction in investor sentiment in the future could lead to large-scale position liquidations and another flash crash.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*