POLYHEDRA’S ZKJ TOKEN TANKS 85% IN A DAY AMID ON-CHAIN CHAOS

- Polyhedra Network’s token $ZKJ collapsed by 85% within 24 hours following unusual on-chain moves that wiped out nearly half a billion dollars in market value.

- The crash began Sunday, with ZKJ plummeting from $1.92 to $0.76 in 90 minutes. It briefly rebounded to $1.41, then dropped again to $0.33, where it now hovers.

- Binance says a liquidation cascade began after large holders suddenly pulled liquidity from the market.

- Three wallets farming Binance Alpha Points reportedly dumped millions worth of ZKJ and $KOGE tokens. These moves caused a chain reaction across the token’s liquidity pools.

- The timing also coincided with a token unlock that added 15.5 million ZKJ to circulation. Though some blame the crash on that, no official link has been confirmed.

- Binance has since changed its Alpha Points rules. Starting June 17, volume between Alpha token pairs won't count toward point scores, to reduce manipulation and risk.

- Polyhedra says the network’s core remains solid and blames the crash on “abnormal transactions” in the ZKJ/KOGE pair. It has begun a review and promised to release updates shortly.

- The incident also draws new scrutiny on the role of points-based incentives and liquidity farming across DeFi, especially when mixed with low-float tokens and sudden unlocks.

Image: Polyhedra X platform and KuCoin