Tokens are unrelated to the product. Why did the founder of Life K-line rush to clarify when the market cap was 8.66 million and the decline was 56%?

Life K-line project founder 0xSakura Sakura issued a clarification after the project’s successful launch, stating that the token is unrelated to the product and was not issued by the founder personally. According to the latest news, the project’s market cap is temporarily reported at $8.66 million, with a 24-hour decline of 56.5%, and a trading volume of $25.85 million. Behind this clarification is a systematic explanation from the founder regarding the project’s positioning, fund usage, and foundation operations, as well as a reflection of market misunderstandings amid the Chinese Meme craze.

Core Clarifications from the Founder

Complete separation of token attributes from the product

The founder explicitly states that the Life K-line project has successfully launched, but the token has no direct relation to the product itself. More importantly, these circulating tokens were not issued by the founder or the official team. This clarification directly addresses a core issue: in the Chinese Meme craze, investors are easily confused between the project’s product and its derivative tokens, and the founder’s voice at this moment indicates that this confusion has already caused tangible impacts.

Transparent commitment to fund usage

The received donations are allocated to three areas:

• Covering server costs
• Paying API fees
• Paying the operational team’s salaries

These are necessary expenses for normal project operation, not cash-outs or air tokens operations.

Foundation and NFT operational logic

Foundation’s Public Welfare Orientation

The founder’s thinking about the official foundation is: 50% of the received donations are destroyed, and the other 50% are donated entirely to Giggle (a charitable project). This allocation ratio demonstrates the founder’s public welfare intent—half disappears from circulation, and the other half goes to charity.

Regarding BNB received through token transaction taxes previously, the founder states, “not much has been used, it can all be donated to the foundation, all donated to Giggle.” This indicates that the purpose of fund accumulation is not for personal or project profit, but for public welfare.

Cautious attitude towards accepting donation tokens

The founder honestly admits an interesting dilemma: which tokens to accept as donation tools requires careful consideration. The core issue he mentions is:

Some high-control air coins might use the donation function to “brag about virtue,” which harms the integrity of the entire system. Even if converted to BNB for actual benefit, dumping and selling directly would also be bad for the community.

Therefore, the founder prefers either only accepting BNB or only accepting BSC tokens that have already launched Alpha or Aster. This choice reflects considerations for ecological order and stability.

Non-financial attributes of NFTs

Regarding NFTs, after donation, one can gain permanent access to all advanced versions of the Life K-line. The founder emphasizes that this NFT symbolizes the goodwill and merit of the donation, similar to a donation certificate, and cannot be resold.

This design avoids the risk of NFTs being used as speculative tools, returning to their essence—a combination of functional rights and spiritual symbolism.

Market response complexity

The 56.5% decline in 24 hours seems alarming, but the trading volume remains at $25.85 million, indicating that market enthusiasm has not completely faded. The underlying contradiction may be that investors are digesting the founder’s clarification and re-evaluating the token’s investment logic.

Deep reflections

The founder’s decision to speak out at this time indicates that there is indeed market misunderstanding about the project. In the Chinese Meme craze, many project tokens have become purely speculative tools, and the founder of Life K-line is trying to break this pattern—clearly telling the market that tokens and products are separate, fund usage is transparent, and the foundation is oriented towards public welfare.

This act of clarification is noteworthy. In a market full of exit risks and trust crises, openly admitting “the token is unrelated to the product” requires considerable resolve. It either shows the founder’s confidence in the product itself or that he has realized this confusion is damaging the project’s long-term development.

Summary

The founder of Life K-line’s clarification involves three levels: token attributes, fund usage, and foundation operations. The core message is—this is not a token project, but a product project, with the token as a byproduct. The simultaneous decline in market cap and the clarification reflect the market’s re-pricing and re-understanding of the project. For investors, it’s important to distinguish: the value of Life K-line’s product and the speculative value of its token are two different things. For the project team, this clarification is also an opportunity to rebuild trust.