The ZKJ token, associated with the Polyhedra Network, experienced a sharp decline of 83% following a series of abnormal transactions. This event has captured attention in the cryptocurrency market and sparked discussions.
What Happened to ZKJ?
On the morning of June 15, the ZKJ token fell 60% in a short period—from $1.92 to $0.76. This decline occurred within 90 minutes. After a brief recovery to $1.41, the token began to fall again, eventually reaching $0.32 by the evening of June 15. In this time, ZKJ’s market cap decreased by nearly $500 million.
Response from Polyhedra Network and Binance
Polyhedra Network stated that the sharp price drop of their tokens was caused by a series of abnormal transactions involving the ZKJ/KOGE trading pair. Binance reported that large holders began withdrawing their assets, leading to a liquidation cascade in the market. Some market observers linked the price fall to a recent token unlock and expressed suspicions of foul play by Polyhedra, but no confirmations of such claims have been received.
Binance Changes Alpha Points Calculation System
Both ZKJ and KOGE tokens were used to earn Alpha Points within the Binance ecosystem. However, Binance announced adjustments to the Alpha Points calculation rules to enhance market fairness and reduce systemic risks. Starting June 17, trading volume for Alpha token pairs will no longer count towards Alpha Points calculation.
The situation surrounding the ZKJ drop highlights the risks associated with abnormal transactions in the cryptocurrency market. Market participants are now focused on the responses of platforms and developers in such extraordinary circumstances.
