The truth about what happened to the ZKJ token

ZKJ token of the Polyhedra network crashed by 63% after whale dump

The original token of the Polyhedra network, ZKJ, experienced a devastating flash crash on June 15, dropping more than 63% in less than two hours, resulting in over $99 million in liquidations and sparking widespread accusations of market manipulation within the crypto community. Whale wallets led to the collapse. According to blockchain tracker Lookonchain, six whale wallets collectively sold 5.23 million ZKJ tokens for around $9.66 million, just before the crash. These wallets had previously removed liquidity from both ZKJ and Koge, swapping Koge for ZKJ and then dumping ZKJ en masse. This aggressive liquidity drain triggered a sharp price decline, leading to a wave of forced liquidations of leveraged long positions. Among those liquidated, six traders each lost over a million dollars, with ZKJ representing 81.3% of all crypto liquidations in just four hours, according to CoingLass data. The collapse of ZKJ's price saw it fall from $1.98 to a low of $0.7625, representing a drop of more than 60% on Coingecko. CoinmarketCap presented an even grimmer scenario, showing the token collapsing more than 80% to $0.33, which would bring the token's market cap to under $95 million. Although ZKJ briefly recovered to $1.41, it soon returned to a range of about $0.80 by noon. What is particularly shocking is that ZKJ had been trading in a relatively stable range between $2.05 and $1.98 for over a month, making the sudden crash all the more concerning. Koge's connection and the community's violent reaction have called it a rug pull or pump and dump.

On June 15, 2025, Crypto X users rushed to call what many now suspect to be a coordinated "pump and dump" or even a "long-planned harvest operation." A key post by user eth apple alleged that the Koge pool ran out of USDT, which left liquidity providers stranded and triggered a significant transfer from Koge to ZKJ, ultimately disrupting both tokens. Eth Apple wrote: "The issue began when the Koge pool ran out of USDT, leaving LPS unable to exit positions." "This led to a mass sell-off from Koge to ZKJ ... The Koge team did not add any USDT to the pool.

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Happened