Kimchi, a memecoin that gained attention through a post by crypto phenomenon Kimchi, has seen its market capitalization plummet by more than 95% after reaching approximately $14 million in a short time. Lookonchain’s research today examined token transfers linked to social media activity.
According to the platform’s findings, Kimchi made a post about the project after receiving 500 million kimchi tokens. PumpFun co-founder Alon also retweeted the post. PumpFun had gained significant popularity as a launch platform for these types of memecoins.
Related News: A Major All-Time High Was Set on the XRP Network: Two Price Levels Are in the Spotlight
However, Lookonchain noted that Alon later retracted his post, while Kimchi deleted hers. The token’s rise was followed by a very sharp drop in value.
Another noteworthy aspect of the investigation involved multiple wallets that purchased at low prices. Lookonchain claims that the addresses it examined subsequently profited over $385,000 from later sales and published the relevant Solscan links.
*This is not investment advice.
Continue Reading: Posts Deleted, This Memecoin Crashed by Over 95 Percent: Another Rug Pull?