Polyhedra Network’s native token ZKJ has crashed over 91%, dropping to an all-time low of $0.3305 on June 16. The sudden fall came after a series of “abnormal” on-chain transactions and mass liquidity withdrawals involving its paired token, KOGE.
According to Polyhedra’s post on X, the problem began when traders started converting large amounts of KOGE into ZKJ. This occurred because the KOGE/USDT pool was drained, and investors had to transfer their money to the ZKJ/USDT pool that soon became overloaded.
KOGE, created by 48 Club DAO, shares liquidity with ZKJ and has been promoted through Binance’s Alpha Points program. Because of their close trading link, the crash in one token triggered a chain reaction in the other. KOGE’s price dropped from $62 to $24, while ZKJ fell from nearly $2 to $0.33.
On-chain data revealed several large wallets farming Alpha Points before the crash. One wallet withdrew over $3.7 million in KOGE and $530,000 in ZKJ. Two others pulled nearly $5 million combined, triggering a “liquidation cascade,” according to Binance.
Adding to the panic, 15.5 million ZKJ tokens are set to unlock on June 19, possibly adding $10 million in sell pressure to an already weak market. In response, Binance has updated its Alpha Points rules. From June 17, trades between Alpha tokens like KOGE and ZKJ won’t count toward user rewards.
Polyhedra says it’s reviewing the incident and maintains that its core technology remains strong.
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