1️⃣ Airdrop - Unlock Token - Dump
$ZKJ recently had a quite large airdrop program, many retail investors received free tokens.
Then there were rounds of token unlock (gradual release) for the team, early investment funds, private sale…
Result: The amount of token supply flooded into the market too much in a short time => Huge selling pressure.
2️⃣ Thin market capitalization + Weak liquidity
Although marketcap ~$218M, the trading liquidity is only ~5M USD, very susceptible to impact when funds are withdrawn heavily.
Just a few whales placing large sell orders can cause prices to drop sharply, as you see.
3️⃣ Bad market sentiment
In the past few days:
BTC correction
All altcoins faced strong profit-taking
Weak flow of funds, anyone holding profits rushed to "sell before it's too late" => Domino effect of selling spread quickly.
4️⃣ The "AI hype" issue is starting to saturate
ZKJ was heavily marketed under the AI + ZK Proof label. But the market gradually realizes that there needs to be more practical use cases, while currently it's mostly hype.
Quick conclusion:
👉 Strong crash due to the combo: unlock + profit-taking + poor liquidity + bad short-term market sentiment.
#DYOR (Do Your Own Research)