Dumping 1.29 million ZKJ and 8,667 KOGE from CEX: Why did the price plummet?
On June 14th, the cryptocurrency market recorded unusual fluctuations of two tokens that were considered stable: ZKJ and KOGE. Both of these cryptocurrencies simultaneously decreased in price by 3% within a short period. The root cause originated from wallet address 0x364…f18e9 – believed to be a key factor driving the prices down.
Specifically, at 21:49, this wallet withdrew 1.29 million ZKJ along with 8,667 KOGE from the bipolar liquidity pool, and then proceeded to liquidate these assets. In total, the wallet owner sold ZKJ worth 3.1 million USD at 21:21 and 22:05; simultaneously, they sold KOGE worth 550,000 USD at 21:20.
This development caused ZKJ's trading volume to surge, peaking at 12.73 million USD right at 21:21. Shortly after, the price of ZKJ plummeted for 15 consecutive minutes – a clear sign of panic selling or a flight response from liquidity providers (LP). The reason is due to ZKJ's narrow liquidity range, making the price extremely sensitive to large volume trades.
By 22:05, the same scenario repeated, causing KOGE to also wobble, although the selling pressure was not significant. The close connection between the two tokens means that just one large-scale transaction is enough to shake the entire liquidity ecosystem, highlighting the interconnectedness and risks of decentralized pools in the cryptocurrency market.$BTC