ZKJ and KOGE have entered a harvesting mode, and the two major tokens favored by point accumulation players have encountered a crash, making it a hell-level liquidation. ZKJ's price plummeted from 2 USD to 0.5 USD, and KOGE was even worse, dropping from 63 USD to 8.5 USD, with losses so severe that it is shocking.
The liquidation of ZKJ contracts alone amounts to as much as 93 million USD, not including the funds locked up in point accumulation and spot trading.
Taking an investment of 1,000 USD as an example, under an 80% decline in ZKJ, users who panic sold lost an average of about 800 USD, which is nearly equivalent to the profit from 10 Binance Alpha airdrops.
Some brothers reported that their initial plan to accumulate points through small transactions with a 5,000 USD investment left them with less than 500 USD after the flash crash, resulting in a net loss of up to 4,500 USD.
Thinking of earning airdrops through Alpha, I didn't expect to have my principal directly taken away this time!
I originally thought the weekend would pass smoothly, but unexpectedly, the most stable sector actually crashed. ZKJ and KOGE in the Alpha sector saw daily declines of over 80%, which is unbelievable. Previously, their movements were comparable to stablecoins!
In the past, everyone believed that only old coins or coins heavily controlled by whales would suddenly crash, who could have predicted that even Binance's hottest Alpha sector would not escape a calamity today!
In theory, Alpha sector projects should do their utmost to strive for performance and seek opportunities to list on Binance's spot market. Why, before even listing, are they so eager to harvest retail investors?
The reason is actually easy to understand, projects like KOGE and ZKJ have long seen through: stimulating trading volume through various activities is merely to compete for listing spots. But the ultimate goal of listing is to sell the tokens in hand at a high price to retail investors and cash out, right?
The problem is that the spot listing ratio of Alpha projects is extremely low, only 12.2%. Even if trading volume is high, it may not necessarily succeed in listing, just like Binance's voting delisting mechanism where FTT always leads in votes but still cannot be delisted, making listing opportunities slim and opaque. Therefore, for projects like KOGE and ZKJ, rather than waiting for uncertain listing opportunities, it is better to sell tokens directly when the platform is popular and liquidity is strong, cashing out and leaving. Clearly, all of this has long been their plan.
Since last week, many people have suddenly promoted low trading fees and small losses for these two projects, clearly being hired to lead the rhythm. Now the situation is clearer: the LP funds providing liquidity for these two projects have not only not increased but have begun to decrease. The threshold for the last two Alpha points has soared to over 240 points, while the average profit per order is only about 50 USD. What does this indicate? The enthusiasm for Alpha airdrops has clearly faded!
Regarding the market, attention needs to be paid to the Federal Reserve's interest rate decision at 2:00 this Thursday. Currently, the market's expectation for an interest rate cut is set for September, so don't expect much in these two months. The only things that could drive prices in the short term are the US stock market and the progress of the Middle East war, but as I mentioned earlier, their impact on future prices will not be particularly significant, as can be seen from the weekend.
What we can expect now is that some favorable news from a certain altcoin will drive a wealth effect in a certain sector, but it is limited to just a wave!
The three coins I recommended last time, SUI, WIF, and ETHFI, are currently making small profits, so just hold on and wait!
Finally.
In today's crypto world, too many people hold a hand of coins but find themselves in a dilemma: they can only wait passively when there is no market, and when the market comes, they do not know how to allocate positions and miss the opportunity.
