The crash of ZKJ stems from a perfect storm of liquidity withdrawal, token unlocks, and panic selling:

🚨 What Caused the Crash?

1. Coordinated liquidity pulls:

Major holders farming Binance Alpha Points pulled liquidity from ZKJ (and its paired token KOGE) pools—this removed critical support and triggered a rapid price collapse .

2. Large token unlock event:

Approximately 15.5 million ZKJ tokens (~5% of circulating supply) were released around that time, causing a significant dilution effect .

3. Abnormal on-chain transactions:

Polyhedra’s team confirmed the crash was due to abnormal on-chain activity—large wallet liquidations moving token prices under severe pressure .

4. Cascade of panic selling:

Once the liquidity drained and unlock occurred, investors in panic started dumping, further driving the price lower in a vicious cycle .

🕰️ Is It a Golden Buying Opportunity?

Pros:

Oversold territory: The token dropped over 80% in 24 hours—extreme dislocation often precedes sharp rebounds.

Short-term bargain: If liquidity stabilizes and no further unlocks happen, you could see a relief bounce.

Cons:

Further unlocks ahead: Tokenomics show ongoing vesting over 36 months, potentially releasing more ZKJ and maintaining downward pressure .

Liquidity risk: Pools were once drained—without confident liquidity support, price may remain volatile.

Lack of catalysts: No immediate news of a relist or new utility—this could limit near-term recovery.

✅ Verdict

Short-term traders: Could capitalize on a bounce—only with strict risk management (stop-loss, tight position sizing).

Long-term investors: Risk is still high. Without new catalysts or confirmed project milestones, better to buy in smaller tranches and average down over time.

💡 Tips if Considering to Buy

Check upcoming unlock schedules: More dilution = more downside.

Watch liquidity pools: Are they being replenished or stabilized?

Track on-chain & exchange announcements: Any signs of renewed interest, relisting, or initiatives could signal a rebound point.