The ZKJ token associated with Polyhedra Network has experienced a dramatic decline of 83% as a result of abnormal transactions, leading to liquidity threats in the market.
Cause of ZKJ Token Collapse
The ZKJ token fell from $1.92 to $0.76 within 90 minutes due to a series of suspicious transactions. Although it briefly rebounded to $1.41, the price dropped again, settling at $0.32, marking an overall decline of 83%.
Binance's Response to the Incident
Binance indicated that the price drop was attributed to large token holders pulling liquidity, creating a 'liquidation cascade' affecting both ZKJ and KOGE. Binance has adjusted its Alpha Points rewards system, excluding trading volumes of Alpha tokens from calculations.
Polyhedra Network's Position
Polyhedra Network assured its audience that the underlying technology remains stable and that an investigation into the incident is ongoing. 'The fundamentals of Polyhedra remain strong, and we continue to build,' a spokesperson stated.
The situation surrounding the ZKJ token's decline emphasizes the importance of transparency in the crypto industry and the need for liquidity maintenance in markets. The actions of large token holders also highlight the risks associated with highly volatile assets.
