[Exclusive] MemeCore "Has Never Sold Foundation's Holdings... September Transfers Were for Liquidity Supply"

Cherry Hsu, CMO of MemeCore Foundation, is being interviewed by 'Digital Asset' on the 6th in Gangnam, Seoul.

This year, the MemeCore Foundation, which has faced multiple allegations of market manipulation, stated that it has never sold its virtual assets (digital assets). Regarding the transfers to exchanges in September, it explained that they were for liquidity supply.

Cherry Hsu, CMO of MemeCore Foundation, said in an interview with on the 6th, "The foundation has never sold M (MemeCore) in the market."

MemeCore is a Layer 1 blockchain project specialized in meme coins. Its own digital asset M was launched in July last year. However, since April this year, allegations of insider trading have arisen due to the concentration of holdings in a few wallets and large transfers to exchanges.

April and June Market Manipulation Allegations... "No Sales by the Foundation"

The controversy began to escalate in April.

Prominent on-chain analyst ZachXBT raised concerns about the market capitalization and supply structure of M, suggesting that insiders might have artificially inflated the price.

ZachXBT claimed that a wallet suspected to be owned by the MemeCore team received about 200 million M at the time of the token's launch and sent several million M to the North American digital asset exchange Kraken. He also pointed out that approximately $7.9 million (about 1.07 billion KRW) worth of M was withdrawn from 18 wallets created on Kraken.

CMO Cherry Hsu rebutted that ZachXBT only verified a portion of the entire on-chain data at that time.

He stated, "ZachXBT checked the information on CoinMarketCap, but at that time, CoinMarketCap and other information providers were not showing 100% of the MemeCore information." He continued, "Only information primarily from the BNB chain was displayed, and the complete information of the MemeCore mainnet was not reflected. The foundation's holding status has been disclosed on the website and in the white paper, and we have never hidden it."

In June, the price of M plummeted by over 80% in a short period without any significant negative news, raising suspicions again.

M dropped from around $2.92 to the $0.50 range, a decline of about 83%, within a few hours on June 25. As no clear hacking, exploits, or negative announcements from the project were confirmed, ZachXBT reiterated the existing suspicion that insiders controlled most of the supply.

The MemeCore Foundation strongly denied any involvement by the foundation or insiders in the sudden drop at that time.

CMO Cherry Hsu mentioned, "At that time, not only Korean investors but also many places, including exchanges, inquired about why the price dropped," adding, "We checked all data and wallets for several hours." He further stated, "No quantities sold to the market were confirmed from the foundation's wallet, and while we cannot know who actually sold, it is certain that the quantities did not come from within."

When asked if the foundation had ever sold M in the market, he reiterated, "The foundation has never sold M in the market." In response to a question about whether the quantities moved to exchanges in April and June were related to the foundation's liquidity provider (MM), he explained, "Those were transfers unrelated to us."

Flowchart of suspected cash-out transfers from MemeCore.

In September, 940,000 M Transferred to Exchanges... "Transfers for Liquidity Supply"

In September, large quantities starting from a whale wallet presumed to be associated with the foundation moved to exchanges, reigniting cash-out suspicions.

On the 30th of last month, analyzed on-chain data through MemeCoreScan, revealing that about 940,000 M started from the 6th largest holding wallet and was transferred to Gate and Bitget between September 21-23.

At that time, this wallet held approximately 314.92 million M, accounting for about 5.8% of the total aggregated amount.

The M transferred from this wallet to other wallets was combined with existing quantities, with about 470,000 M transferred to Bitget and about 467,492 M transferred to Gate.

The large transfers to exchanges occurred right after M reached its peak.

M rose to $1.70 on September 20, then fell to $1.44 on the 21st, $1.31 on the 22nd, and $1.23 on the 23rd, dropping about 28% over three days after reaching its peak.

The quantities entering the exchanges were not insignificant compared to the daily trading volume at that time. A simple comparison based on the prices of each date shows that the quantity entering Bitget on the 21st was about 12% of the day's trading volume, the quantity deposited into Gate on the 22nd was about 16%, and the quantities entering both exchanges on the 23rd were about 25%.

Notably, the wallet from which the quantity movement began was confirmed to have funds sourced from the community allocation specified in the MemeCore white paper. Additionally, it was connected within a multi-signature operational structure to the wallet previously suspected by ZachXBT to be owned by the MemeCore team.

As a result, suspicions arose that quantities related to the project were moved to exchanges for cashing out after the price of M increased.

CMO Hsu clarified, "The quantities moved from the community allocation wallet were not for selling but were sent to provide liquidity to the MM."

However, the MemeCore Foundation does not plan to disclose the scale of the quantities provided to the MM separately. CMO Hsu stated, "In blockchain, if one MM wallet is disclosed, it can affect other wallets connected to it, so I believe there is no need to disclose such information." He added, "If a specific MM wallet is disclosed, it could reveal information related to other customers of that company."

It cannot be confirmed solely through on-chain data whether the deposits to exchanges in September actually led to sales. On-chain data can only verify that M was moved to exchange addresses, and whether actual sell orders were made from internal accounts at the exchanges requires internal data from the exchanges.

reported on September 30th under the title '[Exclusive] M (MemeCore) Coin Price Volatility... Large Cash-Out Suspected Transfers After Peak' based on on-chain data and interpretations from experts regarding large transfers to exchanges starting from wallets presumed to belong to the foundation.

On the evening of the reporting day, the MemeCore Foundation requested a clarification report, and interviews were conducted on October 2nd and 6th. On the 2nd, specific explanations regarding the transfers were obtained from the staff and CMO Cherry Hsu. Subsequently, on the 6th, another interview was conducted with CMO Cherry Hsu, leading to the writing of this article.

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