KIMCHI Token Collapses 95% After Promotion Linked to Pump.fun Founder

Blockchain analytics firm Lookonchain reported that the volatility began when the KIMCHI token was promoted via a QR code on Kimchi’s social media, a move amplified by Alon’s repost. Within minutes, the token surged before crashing, leaving many investors holding assets worth a fraction of their purchase price. Analysts identified several wallets that profited by more than $385,000, having accumulated the token before the price spike and selling into the subsequent rally.

While traders have demanded refunds and criticized the lack of due diligence from high-profile figures, no evidence currently confirms whether the accounts were hacked or if the promotion was a deliberate scheme. Alon and Kimchi have not officially clarified their roles in the sequence, and the connection between the token’s collapse and a recorded 16% decline in Pump.fun’s daily revenue remains speculative. The incident adds to ongoing scrutiny of the platform, where recent data indicates that a vast majority of new token launches fail to sustain trading activity beyond their first day.