ZachXBT Questions Kraken Listing Standards Over $M And $SPC

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The scrutiny began on April 20, 2026. ZachXBT posted a detailed thread on X in direct reply to a Kraken post about client protection. His question was blunt: why did Kraken list $M for spot trading on July 3, 2025, and how did it pass due diligence?

The thread gained over 1,800 likes and 192,000 views. As a result, it triggered widespread discussion about Kraken listing standards and token screening at major exchanges.

On-Chain Evidence Behind the Allegations

ZachXBT’s thread included several on-chain findings. According to his analysis, roughly $7.9 million in withdrawals moved from Kraken to 18 newly created addresses. Those wallets held 11.7 million $M tokens collectively, worth about $39.8 million.

He also identified a suspected team address (0x6f1f…ba9). That wallet received 200 million $M at the token generation event. On listing day, it deposited 5.3 million $M to two Kraken addresses.

According to ZachXBT, insiders then pumped the token to a $6 billion market cap and an $18 billion fully diluted valuation. Separate analysis from CryptoTicker suggests that insiders may control over 90% of the supply. Analysts call this a “ghost market cap.”

The structure mirrors a familiar pattern. RaveDAO exhibited similar insider concentration before collapsing in early April 2026. In that case, insiders held 95% of the supply. The token fell from $28 to under $1 within 48 hours.

Kraken Listing Standards Under Scrutiny

Kraken has historically positioned itself as selective. The company states that it reviews governance, compliance, and long-term viability before listing any asset. That reputation separated it from exchanges like KuCoin, Bitget, and MEXC.

ZachXBT’s allegations challenge that image. He pointed to limited on-chain liquidity for $M. In addition, Kraken remains one of the few major spot venues still supporting the token.

The project’s recent updates cited $66 million in launchpad volume. ZachXBT characterized this as lacking real traction. Kraken has not publicly responded to the allegations, and $M still trades on the platform.

Criticism Extends to $SPC Listing

On April 30, 2026, ZachXBT escalated his criticism further. He quoted his original $M thread while replying to Kraken’s announcement of $SPC. Space (intodotspace) is a prediction market on Solana.

Kraken promoted $SPC for taking leveraged positions on events with up to 10x exposure. ZachXBT responded bluntly. He asked why Kraken is “turning into Kucoin, Bitget, or MEXC with all of these questionable listings.”

$SPC launched on Kraken, MEXC, and BitMart on April 29, 2026. ZachXBT did not back this claim with on-chain data. Even so, his framing suggests he sees a pattern in Kraken listing standards rather than an isolated slip.

$SPC so far has turned out to be a bad deal for people involved in the pre-sale with a drop of over 90% on the first day.

Community Reactions and Pushback

The thread drew mixed reactions from the community. Some users agreed with ZachXBT and called for Kraken to delist $M. Others pointed to frustration with CEX listing practices more broadly.

Not everyone sided with ZachXBT, though. Several $M supporters argued that the flows he flagged were normal exchange activity. Some also questioned whether his interpretation was too aggressive. In response, ZachXBT reiterated his concerns about limited on-chain liquidity and the small number of spot venues supporting the token.

Why It Matters for Kraken

The timing adds weight to this controversy. Kraken filed for an IPO in November 2025, initially targeting Q1 2026. The company then paused those plans in March 2026, according to CNBC.

For a company eyeing public markets, listing controversies carry extra weight. Kaiko ranked Kraken as the top exchange for Q3 2025, with $59.3 billion in platform assets. Because of that ranking, any erosion of trust could affect investor confidence directly.

Who Is ZachXBT

ZachXBT is a pseudonymous blockchain investigator and OSINT researcher. He joined Paradigm, a crypto venture capital firm, in February 2025 as an incident response advisor. CoinDesk also named him to its Most Influential list in 2024.

According to Paradigm co-founder Matt Huang, ZachXBT has helped recover over $350 million for victims. His work has contributed to arrests across multiple countries, including DOJ prosecution of a BAYC phishing ring.

This is the first time he has targeted Kraken’s listing standards specifically. Earlier mentions of the exchange were unrelated.

What Comes Next

Kraken has not addressed ZachXBT’s findings publicly. The exchange could defend its process or quietly review $M’s status. Meanwhile, the broader conversation about Kraken listing standards and CEX due diligence continues to grow.

Whether Memecore follows a trajectory similar to RaveDAO is still unclear. The token currently trades around $4.50, well below its peak. Traders should watch for further on-chain analysis and any official response from Kraken.

This is not financial advice. Traders should conduct their own research before buying or selling any token mentioned in this article.