15.06.2025 16:41
Polyhedra Network's native token, ZKJ, experienced a dramatic price crash, plummeting over 80% in a single day. This significant decline followed the suspected coordinated withdrawal of substantial liquidity by major holders, leading to a massive sell-off. The event coincided with a previously scheduled token unlock, releasing 15.53 million ZKJ tokens into the market, further exacerbating the price pressure.
Prior to the crash, ZKJ had shown considerable volatility. On June 15th, the token’s price swung wildly, falling from $1.9 to $0.76 before briefly recovering to over $1.4, according to data from CoinGecko. However, this recovery proved short-lived, with the price ultimately falling below $0.9. This sharp drop is particularly striking given the token’s March 2024 peak of $4. The associated KOGE token, also known as the 48 Club token, suffered a parallel decline, plummeting from approximately $62 to $24 during the same period.
On-chain data analysis, attributed to @ai_9684xtpa, points to three significant wallets heavily involved in Binance Alpha farming as the primary culprits. These wallets executed large-scale withdrawals and subsequent sales of both ZKJ and KOGE tokens on Sunday. One wallet, beginning with "0x1A29," withdrew assets worth approximately $4 million (including $3.7 million in KOGE and $532,000 in ZKJ). Similarly, two other wallets, starting with "0x0781" and another unidentified address, liquidated millions of dollars worth of both tokens, adding to the downward pressure on the market. The combined sell-off from these three wallets significantly contributed to the market's collapse.
Polyhedra Network acknowledged the incident, attributing the sharp price decline to a series of unusual on-chain transactions involving the ZKJ/KOGE trading pair. The team is actively investigating the situation and promised forthcoming updates to the community. The rapid price drop underscores the risks associated with cryptocurrency investments and the potential impact of large-scale liquidity events, especially those potentially coordinated in nature. The company's response suggests an ongoing effort to understand the situation and address any underlying vulnerabilities. Information for this report was gathered from internet sources.
