Polyhedra Network’s ZKJ Token Experienced Sharp Drop Due too Market Imbalances
Polyhedra Network’s native token, ZKJ, saw a dramatic 83% plunge to an all-time low of $0.3073 on June 15. The cause? A series of unusual transactions and substantial liquidity withdrawals tied to KOGE, a related token.
On June 15, Polyhedra Network acknowledged on x that “abnormal on-chain transactions” in the ZKJ/KOGE trading pair sparked the crisis. KOGE, a token from the 48 club DAO, linked closely with ZKJ through shared liquidity pools, and was incentivized via Binance’s alpha Points program.
As traders converted KOGE into ZKJ en masse, and major holders withdrew significant amounts of both tokens, prices plummeted. KOGE dipped from $62 to $24, and ZKJ from nearly $2 to $0.30.binance and Polyhedra attributed the collapse to wallets farming Alpha Points, which triggered a “liquidation cascade.”
- One wallet removed over 60,000 KOGE ($3.7M) and 273,000 ZKJ ($530K).
- Two others liquidated an additional $5 million.
On-chain analysts also noted that an upcoming 15.5 million ZKJ token unlock on june 19 could add $10 million in sell pressure. In response, Binance adjusted Alpha Points rules to prevent similar imbalances.
While Polyhedra maintains its fundamentals are strong, restoring market stability and rebuilding trust will be key. For detailed information on Binance’s changes, visit Binance.
