Aptos ecological star project KGEN launched with a big dump of 67%: Why did the "quasi-unicorn" that raised 13.5 million USD start off poorly?

The highly anticipated Aptos ecosystem project KGeN Protocol's native Token KGEN Crypto made its debut on various exchanges, including mainstream CEX, on October 7, 2025, but experienced a disappointing start. The KGEN price fell by 67% within hours of launch, triggering market fear, uncertainty and doubt (FUD). Despite KGeN Protocol boasting 38.9 million registered users, $60.8 million in annual revenue, and $13.5 million in funding from top institutions like Jump Crypto, its strong fundamentals starkly contrast with the chaotic token issuance. Technical issues, presale redemption latency, and Airdrop sell pressure were the direct causes of this price collapse, casting a shadow over this project hailed as a “quasi-unicorn” in the fields of AI, Decentralized Finance, and identification.

The Ambition of KGeN Protocol: A “Verified” Ecosystem with Tens of Millions of Users

The KGeN Protocol is not merely a speculative cryptocurrency project; its core lies in building a vast ecosystem centered around the “Verified Distribution Protocol,” spanning across artificial intelligence (AI), Decentralized Finance (DeFi), gaming, and business sectors.

· POGE: Core Identity Identification Framework: The core innovation of KGeN is POGE, a privacy-protecting identity identification framework. It utilizes 876 million verified user attributes to combat bots and fake interactions, enabling users to earn rewards through skills, engagement, and network by anchoring identity with biometrics and on-chain reputation.

· Mature business model: KGeN is already a functionally mature business entity, with 38.9 million registered users and an annual income of 60.8 million USD. Its K-Store marketplace allows developers to directly distribute applications and loyalty programs to verified real users, successfully connecting real business with blockchain.

· Top institutional endorsement: The project has received investments from top institutions such as Jump Crypto, Accel India, and Prosus Ventures, raising over 13.5 million USD to date, indicating that despite the chaotic token issuance, institutions still have faith in its long-term vision.

· KGEN Token Empowerment: The total supply of KGEN Token is 1 billion coins, with a circulating supply of approximately 200 million coins at launch. Token holders can participate in governance through staking, share protocol revenue, and earn rewards.

Market Chaos: “Bloodbath” Triggered by Technical Failures and Trust Crisis

Despite the strong fundamentals, the debut of KGEN was overshadowed by a series of technical issues and a transparency crisis, leading to a price avalanche.

· Frequent technical issues: Since the presale began, users have encountered technical failures. The exchange of presale tokens (including rKGEN points) has been delayed or stuck. The cross-chain bridging between Aptos and BSC took more than 20 minutes and even completely failed, and wallet connections kept crashing.

· Trading errors exacerbate panic: Early investors report issues such as balance loss and transfer not arriving at the exchange, which intensified panic (FUD) just minutes after the token went live.

· Price plummeted sharply: KGEN price dropped 62% from its peak within the first hour, and then continued to decline throughout the day. A large sell-off by airdrop recipients led to a big dump in trading volume of 91%. Within a day, the token price fell from above $0.71 to close to $0.27. The latest data shows KGEN currently at $0.1565, down 33% in the last 24 hours.

· Criticism and Doubts: Critics attack the project's lack of transparency, unclear eligibility for airdrops, and potential insider allocation issues.

Short-term Risks and Long-term Opportunities: Can KGEN Replicate the Rebound of the Aptos Ecosystem?

The severe fluctuations of KGEN are not unique in the launch of projects within the Aptos ecosystem; there have been precedents historically such as TOMA and OM, which ultimately stabilized after undergoing brutal sell-offs.

· Short-term risk: Communication and governance updates from the KGEN team will be key to rebuilding investor confidence. In the short term, traders should remain cautious as technical failures and the shadow of high selling pressure still exist.

· Long-term opportunity: If the KGeN team can timely address technical issues and rebuild trust through clearer communication, its mature ecosystem and verified user base are expected to support a rebound in the KGEN Crypto price and the realization of long-term value. For value investors, this could be a long-term opportunity to buy into a fundamentally strong project at a low price.

Conclusion

The debut of KGEN Crypto is yet another disappointing launch event in the cryptocurrency market, clearly demonstrating that even with substantial institutional financing and a large user base, poor technical execution and lack of transparency can be enough to trigger a price collapse in the early stages. Although the KGeN Protocol has the potential to become an Aptos ecosystem unicorn with its POGE identification framework and business model spanning AI and DeFi, its team must act quickly to address technical issues such as token exchange and network connectivity, and strengthen communication with the community in order to stabilize prices in the short term and ultimately turn this chaotic start into an opportunity for long-term growth.

Disclaimer: This article is for news information only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make decisions cautiously.