Critics had questioned how MemeCore maintained a multi-billion dollar valuation despite insiders allegedly controlling 90% of supply.
It’s been a difficult 24 hours for several digital assets, including MemeCore’s M token, which dropped 76%, and viral altcoin Audiera (BEAT), which shaved off 32% of its value, making them the two worst performers in that period according to CoinGecko data.
Meanwhile, Magic Internet Money (MIM) also fell to about $0.50 after losing its dollar peg, triggering a scramble by the Abracadabra team behind it to stop it from falling further.
MIM Depeg and MemeCore Sell-Off
MIM, which is supposed to hold a $1.00 value, dropped to around $0.50 according to blockchain security firm Peckshield, with data from CoinMarketCap showing it went as low as $0.46 at one point. At the same time, trading volume jumped nearly 375% as holders rushed to exit, although the token’s market cap was still sitting at just over $52 million at the time of writing, a fraction of its fully diluted value of $351 million.
Abracadabra, the group behind the token, acknowledged the situation in a post on X, saying:
“We are acutely aware of the $MIM depeg and are taking emergency actions to remedy the situation.”
Some of the actions it has taken include raising interest rates across all of its Cauldron lending markets, even those that had already been deprecated, to push borrowers to repay the MIM-denominated debt. The logic is that if you borrowed MIM at $1.00 and can buy it back at $0.50, you have a strong financial reason to close that debt now. This repayment would reduce the total MIM in circulation and, in theory, help the price recover.
The team also said that it was pausing direct incentives and Curve liquidity bribes until the peg returns.
“Our priority is simple: restore confidence, improve market structure, and return $MIM to a healthy (and liquid) peg,” they wrote.
Meanwhile, BEAT, which only yesterday was the best-performing cryptocurrency among the top 100, jumping 40% to reach the $2.40 level, but today saw most of that gain slip away, with CoinGecko data showing the asset dropping almost 32% in the last 24 hours. But MemeCore was hit even harder, plunging roughly 76% in the same period. It recorded a new all-time high just two months ago in late April, meaning it has lost about 85% of its peak value, with the market cap dropping from a high of around $6 billion to just under $950 million.
You may also like:
Manipulation Allegations
Previously, blockchain investigator ZachXBT had openly questioned MemeCore’s valuation and token distribution. In posts published in April, he asked how a token with a $6 billion market cap could maintain such a valuation while insiders allegedly controlled more than 90% of its supply.
The same concern was raised just recently when the SIREN token lost over 96% after a wallet linked to its biggest holder sold most of the circulating supply, according to blockchain watchers Spot On Chain and Lookonchain.
