KIMCHI Token Crashes 95% After Deleted Pump.fun Promotion
The Solana-based KIMCHI token plunged more than 95% after a promotional post on trader Kimchi’s X account disappeared and Pump.fun co-founder Alon removed his repost. Lookonchain said the token briefly reached a market capitalisation of about $14 million and estimated that several early-trading wallets made more than $385,000 in combined profits. These figures do not establish who controlled the wallets or whether anyone had advance knowledge of the promotion. Allegations of a hack or deliberate fraud remain unconfirmed, and no verified refund plan or official finding of responsibility was reported. The KIMCHI crash is a warning about the volatility and risks of newly launched memecoins, but it does not prove misconduct by the accounts involved. Pump.fun revenue and active addresses also fell over a two-day comparison, though there is no evidence linking those declines to the KIMCHI token episode.
Neutral
The immediate effect is sharply bearish for KIMCHI: a drop of more than 95% after promotional posts disappeared can leave late buyers with substantial losses and may reduce liquidity and confidence in the token. The reported $14 million market-cap peak is an estimate based on the token price and supply, not proof that this amount of cash entered the market or was lost. Likewise, Lookonchain’s estimate of more than $385,000 in early-wallet profits does not establish wallet ownership or coordination. The claims of hacking, fraud or prior knowledge remain unverified.
For the wider crypto market, the likely impact is neutral and limited. Memecoin promotions and abrupt reversals have repeatedly prompted traders to scrutinise wallet activity, token liquidity and endorsements, often causing short-term volatility in the specific token or launchpad ecosystem rather than a sustained move in major assets. Pump.fun’s reported two-day declines in revenue and active addresses may add to concerns about platform activity, but timing alone does not show that the KIMCHI episode caused them. In the short term, traders may avoid the token, demand stronger verification of promotions and monitor liquidity and wallet flows. Longer-term effects on Pump.fun or Solana would depend on verified findings, user response and whether activity and revenue trends persist; the article provides no evidence of a broader market disruption.