$ZKJ just browsed Twitter and came across a post by @CZ who liked a post about shorting zkj on June 14, and then on June 15, it directly plummeted by 91%, from $2 to $0.33.
Of course, this does not mean that cz supports the plummet of zkj, causing retail investors to lose confidence in alpha, and the alpha plan they managed for several months was aborted. But it does somewhat indicate cz's judgment that the market value of this coin is too high.
The main reasons for the crash of ZKJ are actually three points:
1. Liquidity crisis; koge and zkj share liquidity, and when koge cools down, investors are forced to switch to the zkj pool, which also becomes overloaded, causing prices to plummet sharply. Of course, before the crash, multiple large wallets withdrew significant amounts, which was the main reason for the liquidity exhaustion.
2. Abuse of the alpha points plan; a large number of people frequently “farming” between zkj and koge greatly increased the trading volume, but there was no long-term liquidity support. The liquidity pool is extremely fragile; once large holders withdraw or trading volume decreases, the price will crash.
3. ZKJ is expected to unlock a total supply of 5.3% of tokens this week, valued at $32 million at the time, and the selling pressure has reached a critical level.
On June 17, Binance specifically modified the rules between trading pairs to reduce such operations.
One can only say that no matter where the crypto circle goes, there is a risk of losing all capital when trying to get an airdrop. Of course, I also realized it after the crash and only saw it then, but I didn't make money from the points, brothers 😂.
