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Kid Chameleon was a band based out of the University of Toronto, and the band's history is one of the key elements of Scott Pilgrim & the Infinite Sadness.
Natalie changed her name to Envy and started taking more control of the band. She invited "good drummer" Cole to join, and Steph switched to bongos and viola, forcing Scott to become the bass player (though he didn't own a bass and sucked at playing it). Eventually "Kid Chameleon got to be pretty large" (at least 6 people) and was courted by record labels. Scott refused to sign the contract and Envy kicked him out of the band. At some point after that the band collapsed and Envy went on to form The Clash at Demonhead, while Scott and Stephen Stills formed Sex Bob-omb.
Like most of the bands in the series, Kid Chameleon is named after a classic video game, in this case the 1992 Sega Genesis game Kid Chameleon.