- The Polyhedra Network (ZKJ) token has plunged 91% after abnormal on-chain project.
- Binance has blamed whale exits and a liquidation cascade for the token rupture.
- The upcoming June 19 token liberate would possibly additionally just space off further designate drops.
The cryptocurrency market has once extra been rocked by a dramatic designate give procedure, this time inspiring Polyhedra Network’s native token, ZKJ.
The ZKJ token has suffered an unheard of decline of over 91% in lower than 24 hours, sending shockwaves across exchanges and drawing scrutiny from regulators, investors, and analysts alike.
ZKJ, which had been trading gradually spherical $2.00 for over a month, crashed to a file low of $0.2676 on June 15, 2025, wiping out practically about $500 million in market capitalisation.
This designate rupture has raised extreme concerns over liquidity risks, tokenomics constructing, and the affect of immense holders in decentralised finance.
What led to the surprising Polyhedra Network (ZKJ) designate give procedure?
The ZKJ designate give procedure began early on June 15 when Polyhedra Network posted on X (formerly Twitter) that a wave of “abnormal on-chain transactions” had struck the ZKJ/KOGE trading pair.
Dear Polyhedra community — we want to emphasise that the basics of Polyhedra remain sturdy, every in our technology and in the amazing enhance from our community. We’re persevering with to make and push ahead as planned.
This day’s designate fall turned into led to by a series of abnormal…— Polyhedra (@PolyhedraZK) June 15, 2025
Inside of hours, the token’s designate plummeted by greater than 83%, as market contributors scrambled to know what had led to the meltdown.
Binance later weighed in, attributing the give procedure to a liquidity crisis stemming from immense-scale withdrawals inspiring KOGE, a token closely paired with ZKJ.
In step with the alternate, these withdrawals created a “liquidation cascade” as predominant wallets began offloading their holdings.
Binance is aware that ZKJ and KOGE have skilled considerable designate volatilities and our initial findings disclose the traits had been a results of immense holders eradicating on-chain liquidity, and liquidation cascade in the market.
In inform in self belief to withhold market fairness and… pic.twitter.com/O89hpRVaQz
— Binance (@binance) June 15, 2025
As KOGE’s USDT pool turned into drained, merchants moved their resources into the ZKJ/USDT pool, which rapidly grew to vary into overloaded.
This surprising shift overwhelmed the machine, accelerating the sell-off and deepening the decline in ZKJ’s worth.
Huge withdrawals and whale project
Blockchain information has published several wallets that had been actively farming Alpha Aspects before the rupture.
One wallet by myself withdrew greater than $3.7 million in KOGE and $530,000 in ZKJ.
Two other wallets combined pulled out practically about $5 million, further intensifying the downward spiral.
These actions counsel the involvement of immense holders, in most cases called whales, whose exits likely led to cascading liquidations across leveraged positions.
As costs tumbled, margin calls had been activated, main to forced liquidations that compounded the selling strain.
Although some community participants have speculated about base play, no main blockchain analytics platform has verified such claims.
Polyhedra, for its half, insists it is conducting a thorough overview and maintains that its core technology remains unaffected.
Binance has altered its Alpha Aspects principles for ZKJ and KOGE
In response to the unfolding sing, Binance launched a predominant change to its Alpha Aspects rewards program.
Initiating June 17, trades between Alpha tokens, including ZKJ and KOGE, will no longer depend toward Alpha Aspects calculations.
This policy shift is aimed at reducing systemic threat and discouraging concentrated trading behaviors that would possibly lead to abrupt market screw ups.
Binance’s decision is being viewed as a proactive step to revive market integrity and reduce again manipulation.
Upcoming token liberate adds to the bearish strain
Extra including to investor dread is the forthcoming liberate of 15.5 million ZKJ tokens scheduled for June 19.
Valued at roughly $10 million, this liberate would possibly flood the market with new supply at a time when self belief is already severely shaken.
Provided that this represents greater than 5% of the present circulating supply, market analysts warn that any other spirited fall would possibly happen if holders speed to sell upon unlocking.
The timing would possibly no longer be worse for a token already reeling from its steep fall.
