ZKJ team releases preliminary report on token price crash, causes include on-chain liquidity attacks and more.

BlockBeats reported that on June 17, the ZKJ team released a preliminary report on the sharp decline in token prices, providing an initial analysis of the over 80% price drop of ZKJ tokens on June 15. The main immediate triggers include: large token injections caused by a coordinated on-chain liquidity attack, large transfers from Wintermute to centralized trading platforms, and chain liquidations on these trading platforms.

Preliminary investigations show that a large number of token transfers initiated by Wintermute coincided with extreme market volatility, while there was also a concentrated withdrawal of liquidity from the ZKJ/KOGE pool on PancakeSwap. The specifics are as follows:

1. Coordinated liquidity attack and sell-off behavior on PancakeSwap;

2. Binance Alpha incentive structure and liquidity vulnerability;

3. Liquidity provision status of ZKJ on PancakeSwap;

4. Derivative chain liquidation on centralized trading platforms;

5. Large CEX deposits by Wintermute during the crash.