In simple terms: three large holders teamed up to stage a play, scamming all the retail investors trading ZKJ and KOGE!
The sequence of events (like a relay race):
Around 8:30 PM, large holder A took action first:
He suddenly withdrew KOGE worth 3.76 million USD and ZKJ worth 530,000 USD from the trading pool (equivalent to draining more than half of the pool's water).
Then he exchanged some of his KOGE for ZKJ.
Then he started secretly selling off 1.57 million ZKJ (cashing out about 3.05 million USD).
At this point, the coin price began to slowly slide down, but not too harshly.
Immediately after (almost simultaneously), large holder B took over the dumping action:
He immediately withdrew the money from the pool (worth 2.07 million USD in KOGE and 1.38 million USD in ZKJ).
He also exchanged the KOGE he held for ZKJ.
Then he forcefully dumped 1 million ZKJ (worth about 1.95 million USD)!
This dump directly pierced through the price of KOGE! The few vertical 'big green sticks' (plummets) you see on the candlestick chart were caused by him!
Finally (around 8:40 PM), large holder C dealt the finishing blow:
He received 770,000 ZKJ (worth about 1.5 million USD) transferred to him by large holder B.
He immediately dumped all 770,000 ZKJ!
At this point, the market was already in panic; his dump caused the price of ZKJ to completely collapse.
Why were they able to succeed? What did they exploit?
Fake trading volume: These two coins had huge trading volumes on Binance Alpha, but most of it was users doing 'left hand to right hand' trades to farm points, with very few real buyers. The price is artificially high and shatters at the slightest touch.
The pool is too shallow: The money (liquidity) in the trading pool was originally not much, and when these large holders withdrew, it hit the bottom directly. With no water left in the pool, the price naturally dropped like free fall.
Is the project hinting? The KOGE project team previously announced that they would not lock up their tokens and might sell coins, which essentially gave a heads-up, ‘I might dump’, and emboldened these large holders.
Retail investors were severely scammed:
The coin price plummeted instantly (flash crash), causing many people to get liquidated or trapped, evaporating a lot of money at once.
Those who provided money in the pool to earn transaction fees (liquidity providers) also suffered heavy losses due to the pool being drained.
Lessons learned (how to avoid being scammed next time):
Stay away from 'score-farming coins': If you see a trading pair with particularly low trading friction and absurdly high volume (especially like ZKJ/KOGE), run away quickly! They are traps set by large holders.
Don't touch 'air coins': Like ZKJ, which claims to be worth hundreds of billions (high FDV), but actually has very little circulating (low market cap), it will definitely crash after unlocking—do not believe it.
Beware of 'high-yield pools': Those pools that provide liquidity within an extremely small price range seem to offer high returns, but when a large holder slightly dumps, the price can exceed the range, and your principal may be wiped out instantly!
Gambling for fun: When playing with such high-risk small coins, make sure your investment doesn't exceed 5% of what you can afford to lose completely! Treat it like buying a lottery ticket.
In summary:
The collapse of ZKJ and KOGE was not an accident; it was a meticulously planned operation by three large holders, who exploited platform score-farming rules and pool loopholes to collectively harvest retail investors! Remember: there are no free lunches; behind seemingly high returns often lurk sharp scythes. In the crypto space, first ensure your survival, then think about making money!
I am Mingzhu; follow me for daily real-time data and updates on the blockchain, helping friends anticipate decisions—exciting insights you won't want to miss. Feel free to leave comments for discussion.