Oh, the grand farce of the Polyhedra Network! Their native token, ZKJ, has taken a nosedive of over 83% on June 15, plummeting to an all-time low of $0.3073, all due to a series of most peculiar and “abnormal” transactions and a mass exodus of liquidity, all linked to its charming companion, KOGE.
According to a post on x by the illustrious Polyhedra, this tragicomedy began with “abnormal on-chain transactions” involving the ZKJ/KOGE trading pair. KOGE, a token issued by the mysterious 48 Club DAO, has been in a close and cozy relationship with ZKJ through shared liquidity pools, all while being lavishly incentivized through Binance’s Alpha Points program.
Dear Polyhedra community — we must emphasize that the fundamentals of Polyhedra remain as strong as ever, both in our technology and in the unwavering support from our community. We are continuing to build and push forward as planned.
Today’s price drop was caused by a series of abnormal…— Polyhedra (@PolyhedraZK) June 15, 2025
Alas, the tokens, being so closely intertwined, found themselves in a dance of doom. When traders began converting KOGE into ZKJ in large quantities, as the KOGE/USDT pool dried up like a desert in summer, this flooded the ZKJ/USDT pool, causing a veritable deluge.
Major holders, sensing the storm, pulled a sizable portion of KOGE and ZKJ from on-chain pools, according to Binance, starting a “liquidation cascade” that caused the prices of both assets to plummet. KOGE, once a proud $62, now wallows at $24, while ZKJ, which was nearly $2, now finds itself at a meager $0.30.
On-chain analysts, with their keen eyes, linked the price collapse to wallets farming Alpha Points. One wallet, in a stroke of genius or folly, withdrew over 60,000 KOGE, roughly $3.7M, and 273,000 ZKJ, about $530K, while two others liquidated another $5 million combined. The rush was further heightened with a scheduled unlock of 15.5 million ZKJ tokens on June 19, which will add about $10 million in potential sell pressure to already stressed markets.
Community reports indicate that the KOGE/USDT pool was drained first, leaving holders unable to exit their positions. With KOGE/USDT liquidity gone, investors rushed to swap into ZKJ using the still-functional KOGE/ZKJ pool. The resulting spike in ZKJ redemptions overwhelmed its Tether (USDT) pair, leading to a chain reaction that pushed ZKJ to record lows.
Despite the collapse, Polyhedra insists the project’s fundamentals remain strong and that it is conducting a full review of the incident. Binance, ever the wise and just, responded by adjusting Alpha Points rules. Starting June 17, trades between Alpha tokens like KOGE and ZKJ will no longer count toward user point totals, a move intended to limit similar imbalances.
Binance is aware that ZKJ and KOGE have experienced significant price volatilities and our initial findings indicate the developments were a result of large holders removing on-chain liquidity, and liquidation cascade in the market.
In order to maintain market fairness and…
— Binance (@binance) June 15, 2025
The 48 Club, ever the silent partner, has not publicly commented since the crash, though it had previously disclosed that KOGE was fully diluted at launch and stated no commitment to restrict token sales. DAO members, feeling the pinch, expressed concerns, accusing the team of poor planning and lack of transparency.
A bullish scenario following the collapse will depend on Polyhedra’s ability to quickly restore market stability and provide insight into its liquidity structure and token utility. Rebuilding trust and slowing the selloff may be possible with a detailed post-mortem and structural changes like better isolation between the KOGE and ZKJ markets.
But if investor confidence continues to wane, a bearish outcome might ensue, especially since another big ZKJ token unlock is scheduled for later this week. If there is no clear solution, selling pressure may persist, and prices may level off, which would eventually tarnish ZKJ’s reputation. Ah, the perils of the crypto world! 🤷♂️😂
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2025-06-16 06:29