The ZKJ governance token of Polyhedra Network saw a catastrophic 83% crash on June 15, triggered by what the team called “abnormal on-chain transactions” and compounded by a liquidity crisis.
The token dropped from $2.00 to $0.31 in under nine hours, wiping out nearly $500 million in market capitalization.
📉 Liquidity Shock and Sell-Offs
According to Binance, the price collapse occurred after large token holders removed liquidity, triggering a liquidation cascade that sent both ZKJ and KOGE (another Binance ecosystem token) spiraling downward.
The dramatic fall was tracked in real time by CoinGecko:
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🕐 60% drop in 90 minutes (from $1.92 to $0.76)
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🔁 Short recovery to $1.41
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📉 Final plunge to $0.32, where it now trades flat
🔍 Investigation Underway
Polyhedra, known for its zero-knowledge (ZK) proof-based interoperability tools, said it is investigating the incident and promised a full post-mortem analysis soon.
Despite the turmoil, the project claims that its underlying network fundamentals remain intact.
💬 Speculation and Binance’s Response
While some speculate the crash could be linked to a recent token unlock, no credible blockchain analytics firm has confirmed foul play.
Binance, meanwhile, announced changes to its Alpha Points reward system, stating that starting June 17, 2025, trading volume between Alpha tokens like ZKJ and KOGE will no longer count toward point calculations — a move to reduce systemic risk.
⚠️ What This Means for Investors
The ZKJ crash is a cautionary tale of how thin liquidity and concentrated holdings can devastate token value overnight. As Binance adjusts its reward systems, the market may see fewer “incentive-driven” trades and more focus on fundamentals.
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