The KIMCHI token, associated with the Pump fun platform, plummeted by more than 95% after the disappearance of a promotional post linked to trader Kimchi on X. According to Lookonchain data, the token reached a market cap of $14 million before the price dropped. This led to suspicions of fraudulent trading and the role of Pump fun co-founder Alon in promoting the token. The KIMCHI token, which was advertised via a QR code on Kimchi's account, caught the attention of traders. Its value quickly rose to $10 million and then to $14 million before falling by more than 95%. Some observers noted that the price drop could have reached 99% after the promotional post was removed.
According to Lookonchain, Kimchi received 500 million KIMCHI tokens and his post, followed by Alon's post, disappeared. Traders expressed dissatisfaction that Alon did not verify the information before publishing. Allegations of hacking and fraud have not yet been confirmed. Lookonchain also identified over $385,000 in profits from the alleged trading, but it is unclear who controlled the identified addresses. A separate Bitquery investigation documented activity with another KIMCHI launch on October 20, where approximately $104,000 in profits was recorded.
The mentioned token drop occurred amid declining activity on Pump fun. The platform's daily revenue fell from $1.61 million to $1.35 million, about 16%, and active addresses decreased from 178,539 to 159,492, indicating a decline of approximately 11%. However, there is no evidence that this decline is related to the KIMCHI incident. A recent Bitquery study found that 79% of tokens in the sample show no trading after the first day of launches. The study data and incidents have led to increased attention on KIMCHI, but decisions on fund recovery or confirmation of fraud are not available at this time.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.