Polyhedra Network’s ZKJ Token Plunges Amid Liquidity Crisis
On June 15, Polyhedra Network’s native token, ZKJ, suffered a massive 83% drop, reaching an all-time low of $0.3073. The plunge was triggered by unusual transactions and a mass withdrawal of liquidity tied too KOGE, a related token.
The issue began with abnormal on-chain activities involving the ZKJ/KOGE trading pair.KOGE, issued by 48 Club DAO, shares liquidity pools with ZKJ. The collapse started when traders converted KOGE into ZKJ en masse as KOGE’s USDT pool dried up. This flood of ZKJ into the market overwhelmed its USDT pool, causing prices to plummet. The event was linked to the drying up of KOGE’s liquidity, leading to a chain reaction. The Polyhedra team reported this on their x post. The two tokens are closely linked, and their prices are intertwined. As KOGE’s liquidity vanished, ZKJ’s value nosed.
despite the turmoil, Polyhedra reassured its community that the project’s core strengths remain intact. They are conducting a thorough review of the incident. Binance also took action by tweaking Alpha Points rules to prevent future imbalances. Starting June 17, trades between Alpha tokens like KOGE and ZKJ will no longer contribute to user points.
The 48 club DAO, wich issued KOGE, has not commented on the crash.Previously, they stated KOGE was fully diluted at launch with no restrictions on token sales. Community members have expressed concerns about the team’s planning and clarity. The future of ZKJ depends on Polyhedra’s ability to restore stability and rebuild trust. A detailed analysis and structural changes could help. however,if confidence continues to wane,especially with another ZKJ unlock approaching,the token’s reputation could suffer. Polyhedra must act swiftly to address the crisis and prevent further sell-offs.
