Meteora has disclosed a significant financial setback, reporting a $1.5 million loss due to an over-the-counter scam during its first quarter of 2026. The incident occurred while the protocol was executing MET token buybacks. According to their latest Token Holders’ Report, total cash outflows for the quarter amounted to $7 million, a notable decrease from the $30.8 million recorded in the previous quarter. This reduction was primarily attributed to lower one-off expenses following their token generation event-heavy period and fewer substantial capital investments.
Despite the scam-related loss, Meteora managed to generate $18.3 million in net cash flow, supported by $25.4 million in cash inflows, which represented a 30% increase compared to the prior quarter. Trading volumes reached $19.5 billion, though this was 36% lower than Q4 2025, and total fees dropped by 51% to $105.9 million. Revenue, however, declined by a more moderate 35% to $11.4 million, indicating better retention relative to fee reduction amid market cooling.
The protocol’s treasury ended the quarter with $32.8 million, providing more than two years of operational runway. Monthly operational burn stood at $1.4 million, 10% below the FY2025 run rate. Notably, Meteora continued its buyback program, spending $1 million to acquire 7 million MET at an average price of $0.1427. Cumulative buybacks have now reached $13.7 million, covering 3.97% of the total supply.
In response to the scam, Meteora has filed a police report with local authorities, though no further details on the alleged scammer or potential recovery have been disclosed. The event drew attention on social media, with crypto user Dr. Zuler highlighting the team’s transparency in revealing such losses, which he noted is uncommon among projects.
DLMM remained the dominant contributor, accounting for 86% of volume and 54% of fees. Meanwhile, DAMM and DBC pool fees increased by 18% from Q4, showing some growth areas despite overall declines.