On Sunday, Polyhedra’s ZKJ token lost 83% of its value after a string of abnormal on-chain transactions involving the ZKJ/KOGE trading pair. According to Binance, the collapse was triggered by a sudden liquidity crunch in the market.
“Today’s price drop was caused by a series of abnormal on-chain transactions within a very short period on the ZKJ/KOGE trading pair,” Polyhedra posted on X on June 15, after ZKJ’s market capitalization evaporated by nearly $500 million in just nine hours — though some data sources suggest the plunge took place in under two hours.
Binance explained that the crash of ZKJ and KOGE stemmed from large holders pulling out tokens, triggering a liquidation cascade throughout the market.
Several observers have speculated that the sell-off may be tied to a recent token unlock, even accusing Polyhedra of foul play. However, no major crypto analytics platform has confirmed these allegations so far. Cointelegraph reached out to Polyhedra for comment but has not received a response.
Polyhedra Promises Thorough Investigation and Post-Mortem Report
Polyhedra — a crypto project focused on interoperability and utilizing zero-knowledge proofs — stated that it is “closely reviewing the situation” and will provide updates when possible, while assuring users that the network’s core fundamentals remain intact.
According to CoinGecko data, between 2:32 AM UTC on June 15 and the following 90 minutes, the price of ZKJ plunged 60% from $1.92 to $0.76. It then staged a brief rebound, climbing back to $1.41, before tumbling again and trading sideways over the next six hours.
Later that day, around 9:25 PM UTC, ZKJ suffered another steep drop from $0.77 to $0.32, where it has since stabilized. In total, nearly $500 million in market value has been wiped out as a result of ZKJ’s sharp fall.
Binance Adjusts Alpha Points Calculation
Both ZKJ and KOGE — the governance token of BNB48 Club within Binance’s ecosystem — were being traded to accumulate Alpha Points, a scoring system used by Binance Alpha and Binance Wallet to evaluate and reward user engagement.
However, Binance announced that it would adjust the Alpha Points calculation rules starting June 17 to ensure market fairness and stability, and to “reduce systemic concentration risks.”
“Starting from 00:00 UTC on June 17, 2025, trading volume between Alpha token pairs will no longer count towards Alpha Points calculations,” Binance stated.
