15.06.2025 18:18
Polyhedra Network's native token, ZKJ, experienced a dramatic 80% price plunge within a single hour on Sunday, resulting in approximately $100 million in losses for holders of long positions. Prior to the crash, ZKJ traded at $1.90; however, this price plummeted to roughly $0.32, representing one of the most significant single-day declines for a major cryptocurrency project in 2024. This sharp sell-off drastically reduced Polyhedra's market capitalization to a mere $93.8 million, an 83.7% decrease. Data from CoinMarketCap visually illustrates this devastating price drop.
Analysis of on-chain data reveals a coordinated effort by several large wallets, acting as a catalyst for the ZKJ crash. In the hours preceding the event, these wallets subtly depleted liquidity from ZKJ/KOGE trading pairs. A pattern emerged where traders exchanged KOGE for ZKJ, only to immediately sell ZKJ back into the market, creating a downward price spiral. Six prominent wallets, often referred to as "whales," were central to this activity, unloading over 5.23 million ZKJ for approximately $9.66 million. This sudden withdrawal of liquidity, coupled with intense selling pressure, triggered a cascade of forced liquidations across various cryptocurrency exchanges. Data visualizations from Lookonchain detailed these whale transactions.
The consequences were severe: over $99 million in ZKJ long positions were liquidated, accounting for a staggering 81.3% of all cryptocurrency liquidations during that period. At least six individual traders suffered losses exceeding $1 million each. Speculation points to a confluence of factors contributing to this collapse, including potential front-running of scheduled token unlocks, a mass sell-off by users who had acquired tokens through airdrops, and a widespread panic reaction as the token's price structure crumbled.
Following the event, the 48 Club DAO, the creators of KOGE, attributed the market meltdown to poor management of the project. Social media platforms erupted with outrage, as users expressed their anger, demanded accountability, and accused the project of engaging in fraudulent practices, claiming to have been "rugged" from multiple directions. The swift and substantial nature of the ZKJ price drop highlights the inherent risks associated with investing in the volatile cryptocurrency market.
