According to Wu, Polyhedra has released a preliminary report on the price crash of the ZKJ token. Initial analysis shows that the event was triggered by an on-chain coordinated liquidity attack on PancakeSwap, where multiple addresses withdrew over 7.7 million dollars from the ZKJ/KOGE liquidity pool and concentrated their sell-off of ZKJ, leading to a rapid price decline. The project team stated that they did not sell any tokens and had previously provided approximately 30 million dollars worth of USDT, USDC, and BNB in liquidity to PancakeSwap, but due to the sharp price drop, all related assets were exchanged for ZKJ. During the same period, Wintermute transferred over 3.39 million ZKJ to centralized exchanges, with its holdings dropping from 3.41 million to 22,000 within 90 minutes, causing the price of ZKJ to fall from about 1.93 dollars to 0.29 dollars, a decline of over 80%. During this time, around 94 million dollars in long positions of ZKJ on platforms like Bybit were liquidated, further exacerbating the downward trend.
