In the fast-paced world of crypto, where meme tokens can moon overnight or crash just as quickly, staying ahead of risks is key. A recent tweet from Seb Montgomery, a prominent figure in the blockchain space, has sent ripples through the community. He shared a personal story from the 2022 Solana Breakpoint conference, where whispers of FTX's insolvency turned into a full-blown disaster. Montgomery got wiped out despite a short heads-up, and now he's sounding the alarm on similar rumors swirling around MEXC.

Here's what he posted: "2022, at solana breakpoint, there were whispers FTX might be insolvent. i had 12 hours notice, but was planning a side event, and i got wiped. now there are rumors the MEXC is insolvent. unsure if true, but likely a good idea to take most of your funds of CEXes and into your cold storage wallets. the best time to do it, right now."

For those new to the scene, CEX stands for Centralized Exchange—like Binance or MEXC—where you trade but don't fully control your assets. FTX was a giant in the industry until it imploded in November 2022, leaving billions in user funds locked up. The fallout was massive, with founder Sam Bankman-Fried ending up in prison. Meme token holders, especially on Solana where tokens like Dogwifhat or Bonk thrive, often use platforms like MEXC for its low fees and wide listings. But if these rumors hold any water, it could spell trouble.

Digging into the buzz on X (formerly Twitter), opinions are split. Some users report frozen accounts and withdrawal delays, echoing issues from a high-profile case earlier this month involving a trader known as The White Whale, whose $47 million in ZEC was temporarily locked. MEXC's CSO, Cecilia Hsueh, has pushed back, emphasizing their proof of reserves and stable operations during recent market crashes. In one post, she highlighted how MEXC handled a massive liquidation event in October 2025 without downtime, unlike some competitors.

Others dismiss it as FUD—Fear, Uncertainty, Doubt—spread to tank prices or farm engagement. One trader noted, "MEXC is KYC + compliance-driven now... Don’t spread panic without solid proof." Yet, with reports of massive outflows and complaints piling up, it's hard to ignore the smoke. MEXC has been accused of unethical practices, like demanding extra fees from projects for listings or manipulating volumes, as claimed by the CateCoin team.

As someone who's covered crypto upheavals from CoinDesk to now building a knowledge base at Meme Insider, I've seen how quickly things can unravel. Meme tokens are fun and volatile, but they're often traded on lesser-regulated exchanges to chase pumps. If MEXC faces liquidity issues—tied perhaps to the brutal flash crashes this October that wiped out billions in leveraged positions—it could freeze withdrawals, leaving holders high and dry.

The golden rule in crypto? Not your keys, not your coins. That means getting your assets off exchanges and into self-custody. Cold storage wallets, like hardware devices from Ledger or Trezor, keep your private keys offline, safe from hacks or exchange failures. Here's a quick guide for meme token enthusiasts:

• Choose a wallet: For Solana-based memes, go with Phantom or Solflare for hot wallets (online but user-controlled), or pair with a hardware wallet for extra security.
• Withdraw carefully: Start small to test. Transfer to your wallet address—double-check it to avoid fat-finger errors.
• Diversify: Don't keep everything in one place. Use DEXs like Jupiter on Solana for trading without intermediaries.
• Stay updated: Follow reliable sources on X, but verify with proof of reserves reports. MEXC publishes theirs here.

While the rumors might prove unfounded—MEXC handled over $2 billion in daily trades recently and claims full backing—the FTX saga taught us preparation beats reaction. If you're holding hot meme plays like Pump.fun launches or AI-themed tokens, now's the time to audit your setup. In blockchain, empowerment comes from knowledge and control. Let's keep building that resilient meme economy, one secure wallet at a time.