Pump.fun KIMCHI token crashes 95% after co-founder deletes promotion

What happened

A newly launched memecoin called Project Kimchi surged to a market capitalization of approximately $14-15 million within minutes on October 22, then collapsed more than 95% after promotional posts were deleted from two high-profile accounts. According to reports from Crypto.news and Bitcoin.com News, the token promotion began when trader Kimchi's X account posted an image featuring a QR code directing users to the new token on Pump.fun. The post included text reading "project kimchi, same internet, different outcome" and carried Pump.fun branding.

Pump.fun co-founder Alon Cohen reposted the promotion from his personal account, which according to reports accelerated the token's price climb. Within seconds of Cohen's repost, the token reached a $10 million market capitalization and subsequently topped out near $14-15 million. However, approximately 30 minutes after the initial promotion, both posts disappeared from the platform. Traders who scanned the QR code reported it no longer pointed to the token. The market capitalization subsequently fell to under $600,000, representing a decline exceeding 95% from its peak.

Following the token's collapse, Kimchi's account began removing Pump.fun-related content from his X biography and deleted earlier posts about the partnership. The partnership had been publicly announced just two days prior, with Pump.fun positioning Kimchi as a new creative partner and a focal point of the platform's retail expansion efforts. The timing and coordination of the deletions led some observers to question whether either account had been hacked, though no verified statements confirming unauthorized access have emerged.

Why it matters

The incident raises questions about the risks associated with high-profile endorsements in the memecoin space and the potential for rapid, unexplained price movements to catch retail traders off guard. Traders who purchased Project Kimchi near its peak found their positions underwater within minutes, with one trader's post demanding refunds from Cohen gaining significant traction on social media. The episode also highlights tensions within platforms like Pump.fun, where rapid token launches and promotional activities create environments susceptible to confusion about whether events result from accidents, hacks, or deliberate actions. As Protos reported, the confusion about whether the accounts were compromised or the promotion was intentional remains unresolved.

What the data shows

Blockchain analytics firm Lookonchain identified wallet activity suggesting profitable early trading during Project Kimchi's brief existence. The firm's investigation identified several wallets that accumulated tokens at relatively low prices before selling during the rally, estimating combined profits exceeding $385,000. Lookonchain examined three Solana addresses for the associated transfers. The firm emphasized that blockchain transfers alone do not establish who controlled the addresses or whether traders possessed advance knowledge of the promotion.

Separate analysis by Bitquery identified another KIMCHI token launched around October 20 involving three linked wallets that generated approximately $104,000 in gains through buying and quickly selling newly issued tokens. Bitquery explicitly stated it could not connect those wallets to the token deployer through direct transfers. Because this investigation concerned a different token and transaction sequence, the reported profits from Bitquery's findings should not be combined with Lookonchain's estimates without matching contracts and timestamps.

Background

Kimchi's prominence in crypto trading rests partly on claims about his profitability trading the official TRUMP token following its January 2025 launch. Kimchi has claimed to have made approximately $40 million from TRUMP trading. However, blockchain analyst Bubblemaps reported that publicly verifiable profits from his linked wallets total closer to $6 million, though the analyst acknowledged that hidden addresses could exist.

The Project Kimchi promotion was not the first token bearing Kimchi's name. Prior to this incident, an original KIMCHI memecoin reached approximately $40 million in market capitalization during its first hour after the Pump.fun partnership announcement. Blockchain analysis showed that an anonymous deployer purchased about 79% of the token's supply for approximately $9,300, with creator fees routed to a wallet labeled Kimchi. Analysts noted that approximately 75% of the token's supply concentrated in that address, making most of the theoretical value difficult to convert to actual funds.

What is still unclear

The circumstances surrounding the promotion's deletion and the accounts' subsequent actions remain unexplained. No verified confirmation has emerged regarding whether either account experienced unauthorized access. Neither Kimchi nor Cohen issued public statements addressing the token launch or the deletion of promotional material. Some observers have speculated that the sequence of events, including Cohen's quick repost followed by equally quick deletion, required coordinated planning, while others have suggested account compromise as an explanation. Crypto trader Fabiano noted that Cohen did not share hack warnings after removing the post, raising questions about the account's status.

What to watch

Lookonchain reported that Pump.fun experienced declines in activity following the incident. Daily platform revenue fell from $1.61 million to $1.35 million over a two-day period, representing approximately a 16% decline. Active addresses on the platform dropped from 178,539 to 159,492, a decline of roughly 11%. However, Lookonchain cautioned that the timing does not demonstrate the KIMCHI controversy directly caused either decline. Pump.fun has recently expanded beyond memecoin launches to include perpetual futures trading powered by Hyperliquid and launched Pump Bridge to support cross-chain transactions.

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