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A systematic analysis of the main reasons for the 80% decline of ZKJ and KOGE and how to avoid such risks.
Summary: The recent decline of ZKJ's KOGE has led many to blindly follow the trend, shifting the main responsibility onto KOGE, while the main blame actually lies with the ZKJ project party's wrongdoing.
1. The ZKJ project party @PolyhedraZK stated at the first opportunity during this decline that the large sell-off of the ZKJ/KOGE trading pair on the BSC chain caused the anomaly, implying that the KOGE project party was at fault.
2. The ZKJ token is divided into ETH chain and BSC chain, and @PolyhedraZK does not have an official cross-chain bridge to connect the ZKJ of the two chains.
3. The total supply of ZKJ on the BSC chain is 100 million, with the project party's address still locking 40% (40 million ZKJ), and Binance initially holding 20% (20 million ZKJ), of which Binance allocated 5.5 million ZKJ for the Alpha airdrop and trading competition, with each contributing 2.75 million ZKJ.
4. The initial circulation of ZKJ on the BSC chain was 5.5 million ZKJ from Binance's airdrop and trading competition, along with 1 million ZKJ added by the project party.
5. According to the agreement, the circulating ZKJ on the BSC chain is currently less than 5 million ZKJ, with the remainder held by the project party and Binance itself.
6. After the crash of KOGE at 20:48 Beijing time, there was not much fluctuation in ZKJ on the BSC chain. Starting at 21:00, due to the impact of the crash on the ETH chain, it dropped to a low of 0.376u.
7. The Binance ZKJ contract follows the ZKJ price on the ETH chain, resulting in the OKX spot (Binance contract) being at 0.25U while the Binance Alpha price was still at 0.78U at that time.
8. Later, when OKX spot (Binance contract) was at 0.42u, the highest price on Binance Alpha was at 1.47u, proving that the ZKJ on the BSC chain was not the main reason for the crash; KOGE had some impact, but was not the mastermind.
9. The real party responsible for the crash is the ZKJ project party, with the crash path being the mass sale of ZKJ on the ETH chain, spreading panic to the Binance contract, and then to the ZKJ on the BSC chain of Binance Alpha. Currently, the ZKJ price on the ETH chain is still over 150% lower than the ZKJ price on the BSC chain.
10. ZKJ has dominated the trading volume on Binance Alpha for over a month, but there is a reason it has not hit the spot market.
Over the past year, the price of ZKJ on the ETH chain has consistently remained above 1.2u, and now it has jumped to more than 0.2u after being on Binance Alpha for more than a month.
12. This also shows that the nature of the @PolyhedraZK project party is very malicious, and Binance is merely a coin in the Alpha segment. The liquidity provided is already enough for them to exit and harvest; the Binance spot team is likely also aware of the ZKJ project party's intentions, which is why it has not yet launched on the Binance spot market.
13. Users are advised to use a method of small amounts over multiple transactions to brush points on Binance Alpha in the future, seeking better targets, which can significantly reduce losses when harvested by the project party.
Finally, I wish everyone prosperity.
