ZKJ, the native token of the Polyhedra Network project, lost more than 80% of its value in a single day. The collapse began following abnormal activity involving the ZKJ/KOGE trading pair, which, according to Binance, led to a sharp drop in liquidity and a chain reaction of liquidations. In response, Binance announced it would revise its Alpha Points program.
A Series of Transactions Triggers Market Panic
According to Polyhedra’s statement, the sharp decline in ZKJ’s price was triggered by “unusual on-chain transactions” involving the ZKJ/KOGE pair. The token’s price fell from $1.96 to $0.76 in less than 90 minutes, Coinmarketcap data confirms a 60% drop during this period. Over the next hour and a half, the asset partially rebounded to $1.27, but then resumed its downward trajectory. At the time of writing, it is trading around $0.32.
Data from Lookonchain shows that six large addresses dumped 5.23 million ZKJ worth $9.66 million just before the crash. CoinGlass recorded nearly $100 million in ZKJ liquidations over a span of four hours. Binance noted significant price fluctuations in ZKJ and KOGE tokens across various platforms and networks. According to their preliminary analysis, the volatility was caused by major liquidity withdrawals from large holders, which in turn triggered widespread liquidations.
Suspicions of Manipulation and the Project’s Tokenomics
Despite growing suspicions among traders and accusations directed at Polyhedra of deliberate manipulation, no major analytics platform has confirmed fraudulent activity. The project team stated that they are investigating the situation and promised to release more information soon. They also emphasized that the “fundamentals of the network remain unchanged.”
ZKJ serves as both a utility and governance token for the Polyhedra project, which focuses on zero-knowledge-based solutions. The team presents it as infrastructure to facilitate interoperability between different blockchains.
Binance Responds With Changes to Alpha Points
The ZKJ and KOGE tokens were part of Binance’s incentive ecosystem under the Alpha Points program, which tracks user activity within Binance Wallet and Binance Alpha. Following the crash, Binance announced that as of June 17, 2025, trading volumes between Alpha tokens would no longer count toward Alpha Points. According to the exchange, this measure is aimed at “reducing concentration risks” and stabilizing the market.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.
