16.06.2025 11:25

ZKJ and KOGE tokens suffered a significant flash crash, plummeting by as much as 85%, following substantial liquidity withdrawals by large holders. This dramatic price drop was directly linked to activity within the Binance Alpha program.

Blockchain analytics firms, such as Polyhedra, identified coordinated actions by major wallets responsible for the massive selloff. These transactions, highlighted by sources like Lookonchain, revealed the vulnerability of the system to market manipulation stemming from concentrated liquidity. One wallet alone withdrew over $4 million worth of KOGE and ZKJ tokens, contributing significantly to the collapse.

The resulting price declines were staggering: KOGE fell 61%, from $62 to $24, while ZKJ experienced an even more dramatic 85% drop, from nearly $2 to $0.30. This cascade effect, triggered by interconnected contracts between the two tokens, demonstrated the inherent risks associated with concentrated liquidity and the potential for manipulative actions within the Binance Alpha ecosystem.

In response to this event, Binance adjusted its Alpha Points program rules. These revisions are intended to mitigate token volume inflation and foster greater fairness within the incentive structure, thereby aiming to prevent similar incidents and restore market stability. The changes aim to reduce vulnerabilities and promote a more balanced trading environment. The incident served as a stark reminder of the risks associated with concentrated liquidity and the need for robust safeguards against market manipulation.