The ZKJ token from Polyhedra Network has lost over 80% of its value in the last week, attributed to coordinated attacks and large-scale token sell-offs.
Overview of the ZKJ Situation
The ZKJ token dropped from $1.92 to $0.76 in just 90 minutes on June 15, and later in the evening, the price fell from around $0.77 to $0.32 within hours. The total market value of the token decreased by approximately $500 million. According to the firm, this crash was related to a liquidity attack on PancakeSwap and aggressive sell-offs.
Polyhedra Network's Response
Polyhedra Network co-founder Tiancheng Xie confirmed the team will conduct further buybacks to stabilize ZKJ prices and assess the situation following financial attacks. 'We will buyback more. Now we need to figure out the current situation and prevent future financial attacks,' he stated. The buyback strategy aims to reduce circulating supply and increase demand.
Binance's Reaction
Binance refuted claims of involvement in the ZKJ price crash. The exchange announced changes to its Alpha Points reward program to minimize concentration risks and ensure market fairness. They also noted that trading volumes of Alpha token pairs will no longer be counted toward Alpha Points calculations starting June 17.
The situation with the ZKJ token highlights the volatility of cryptocurrency markets and the importance of transparency and adequate responses from developers in the face of financial attacks.
