The Reasons for the Collapse of ZKJ!!! Did You Catch It?
$ZKJ is another project team that has run away with a garbage coin!
#ZKJ The recent collapse is mainly caused by the following factors:
1. Large liquidity withdrawal triggered a flash crash
Multiple large wallets withdrew funds from the ZKJ/KOGE pool on a large scale: such as 0x1A29 and 0x0781, which respectively withdrew millions of dollars in KOGE and ZKJ, and sold them in batches.
Binance warned that this triggered a wave of liquidity crisis and "liquidation cascade," causing prices to plummet over 80% within hours.
2. Associated token interactions weighed down
ZKJ is bound to trade with KOGE and shares liquidity; the KOGE pool dried up first, leading users to rush to convert to ZKJ, which then impacted its USDT pool, triggering a chain reaction.
3. Utilization of Binance Alpha mechanism
The main wallets in this event are mostly users of Binance Alpha point farming. They use the Alpha mechanism to promote trading volume to earn points, and then withdraw profits at high points.
Binance subsequently announced that starting June 17, the mutual trading of Alpha tokens will no longer count towards points, to reduce structural risks.
