KIMCHI token crashes after a promotional repost disappeared. Specifically, blockchain analytics firm Lookonchain reported the sequence. Kimchi’s account promoted a newly launched token. It reportedly received 500 million KIMCHI tokens. Meanwhile, Alon reposted the announcement. Both posts subsequently vanished.
Why the KIMCHI token crashes matter
The controversy began with an AI-generated promotional image. It appeared on Kimchi’s X account. The image featured a QR code. That code directed users to a new token on Pump.fun. Traders quickly bought the token. Meanwhile, Alon’s repost drew further attention.
Within minutes, KIMCHI reportedly climbed past a $10 million market cap. It then reached roughly $14 million. However, its subsequent decline exceeded 95%. Some observations placed the drop closer to 99%.
Market cap measures estimated supply value at the prevailing price. Therefore, the $14 million peak does not establish collective losses. It also does not prove that an equivalent amount entered the market.
Traders demand answers over deleted promotion
Crypto trader Arez questioned the sequence. He alleged that the QR code’s destination changed. That happened after the token attracted substantial trading. He said Alon withdrew his repost. Consequently, some buyers held tokens purchased near the peak.
The incident followed recent attention on Kimchi’s relationship with Pump.fun.
Lookonchain identifies over $385K in suspected profits
Lookonchain’s investigation identified several wallets. They reportedly accumulated KIMCHI at low prices. Then they sold during the rally. The firm estimated combined profits exceeding $385,000.
Investigators identified three Solana addresses. The wallet activity raises questions about trading patterns. However, blockchain transfers alone do not establish who controlled the addresses.
A separate Bitquery investigation documented another KIMCHI launch around October 20. Researchers identified three linked wallets. They bought a newly issued token and quickly sold. That generated approximately $104,000 in gains.
Bitquery explicitly stated it could not connect those wallets to the deployer. Its findings concern a separately identified token. Therefore, do not combine the reported profits without matching contracts and timestamps.
Accusations remain allegations
Following the collapse, some traders accused the accounts of promoting an unsafe token. An X user known as tontheneko demanded refunds. He argued that Alon should have verified the promotion first.
Those accusations remain allegations. They are not established findings of fraud or misconduct. Neither the repost nor its deletion proves coordination or financial benefit.
A suspected account hack has been suggested as another explanation. However, available statements do not confirm unauthorized access. No verified refund arrangement was identified.
Key takeaway
The KIMCHI token crashes after a deleted promotion. Lookonchain found suspected profits exceeding $385K. However, accusations remain unproven. Therefore, traders should verify projects before buying.