Indications suggest that there was a coordinated attack on a liquidity pool of the Polyhedra token on PancakeSwap.
After a collapse on Saturday (15) resulting from a liquidity attack that caused its token to drop 80%, the Polyhedra network announced this Tuesday (17) that it will create a buyback plan for the ZKJ cryptocurrency and will take other measures to rebuild the project. The company reached unicorn status in 2024, a classification given to companies valued at $1 billion.
“We will buy back more. Now we need to understand the current situation and we must prevent future financial attacks,” said Tiancheng Xie, founder of Polyhedra, in a post on X.
In addition, the executive explained which measures he has already started to study to prevent new attacks. “To better protect against such attacks, we accelerated the development of an auditable privacy DEX (decentralized exchange) (dark DEX). It uses zero-knowledge proofs (ZK) — allowing transactions to remain confidential, but still verifiable ('auditable'), ensuring transparency without sacrificing privacy,” he said on X.
It is still unclear what happened on the Polyhedra network, but indications suggest that there was a coordinated attack on a liquidity pool of the token on PancakeSwap, a decentralized cryptocurrency exchange.
As pointed out by a report from CoinDesk, on-chain data reveals that several addresses drained millions from the pool. One of them removed about $4.3 million in tokens from liquidity providers (LP) and dumped 1.57 million ZKJ (the native token of Polyhedra); others followed, unloading nearly 1 million ZKJ each.
A practical measure that the project has already taken was to inject approximately $30 million in USDT, USDC, and BNB as liquidity into decentralized exchanges.
The ZKJ dropped from a price of $2.01 on Friday (13) to a low of $0.32 on Sunday (15). At the time of writing this report, the cryptocurrency is sold for $0.39 and the depreciation over the past week is 80.3%.