Major Sell-Off Triggers Steep ZKJ Price Decline
The ZKJ token, native to the Polyhedra Network, witnessed a sharp collapse of over 80% on June 15, plummeting from around $1.90 to below $0.90 within hours. The dramatic drop was triggered by significant liquidity withdrawals from several large wallets, shortly after a major token unlock event.
According to blockchain analysts, three major addresses believed to be farming Binance Alpha points executed coordinated exits, withdrawing both ZKJ and KOGE tokens, resulting in a liquidity shock.
Wallet Data Reveals Coordinated Dump
On-chain evidence shows the following key movements:
- A wallet beginning with “0x1A29” withdrew 61,130 KOGE (~$3.7M) and 273,017 ZKJ (~$532K).
- Another wallet, “0x0781”, removed 33,651 KOGE (~$2M) and 709,203 ZKJ (~$1.4M).
- A third address sold 772,759 ZKJ, valued at around $1.5 million.
These actions coincided with a scheduled token unlock, which released 15.53 million ZKJ tokens into circulation. This sudden increase in supply appears to have intensified the sell pressure on the already volatile market.
Impact on Market and Community
Before the crash, ZKJ traded steadily around $2, supported by over $20 million in liquidity — much of it attributed to Binance Alpha points incentives. However, the abrupt sell-off saw the token spiral downwards, with brief rebounds proving unsustainable.
The KOGE token, another asset associated with the ecosystem, also suffered a steep drop — falling from $62 to $24 in the same timeframe.
Polyhedra Responds to Unusual Activity
In a statement, the Polyhedra Network team acknowledged the incident, citing “abnormal on-chain transactions” involving the ZKJ/KOGE trading pair. They confirmed an ongoing investigation and committed to providing further updates.
The crash highlights the risks of low-liquidity markets and token unlocks, especially when tied to incentive-driven farming programs. Investors are urged to remain cautious, as unlocks and whale actions can severely impact token stability.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.