The ZKJ token, the utility and governance asset of Polyhedra Network, nosedived by 83% on Sunday following a wave of “abnormal on-chain transactions” linked to the ZKJ/KOGE trading pair, triggering a liquidity crunch that rattled the market.
Polyhedra Network acknowledged the incident via a post on X, stating the price collapse was due to a rapid series of suspicious transactions that occurred within a short timeframe. According to CoinGhecko, the token fell sharply from $1.92 to $0.76 in just 90 minutes as of 2:32 am UTC on June 15. Although it briefly rebounded to $1.41, the recovery was short-lived. ZKJ resumed its downward spiral and eventually settled around $0.32 later in the day, marking an 83% decline and wiping out nearly $500 million in market capitalization.
Dear Polyhedra community — we want to emphasize that the fundamentals of Polyhedra remain strong, both in our technology and in the incredible support from our community. We’re continuing to build and push forward as planned.
Today’s price drop was caused by a series of abnormal…— Polyhedra (@PolyhedraZK) June 15, 2025
Binance attributed the dramatic sell-off to large token holders pulling liquidity, which created a “liquidation cascade” affecting both ZKJ and KOGE — the governance token of BNB48 Club. The tokens were among those used by traders to earn Alpha Points, a Binance rewards system incentivizing user engagement within the Binance Alpha ecosystem.
While some community members speculated that the drop was linked to a recent token unlock and hinted at potential foul play by Polyhedra, no major crypto analytics firms have confirmed any wrongdoing. Polyhedra, known for its zero-knowledge proof-based interoperability solutions, assured users it is actively investigating the matter and maintains that its network fundamentals remain intact.
In response to the incident, Binance has announced a key change to its Alpha Points rewards system. Effective June 17, 2025, trading volumes between Alpha tokens — including ZKJ and KOGE — will no longer count toward Alpha Points calculations. The exchange states that the adjustment is designed to maintain fairness and mitigate systemic risk associated with token concentration.
Meanwhile, Binance introduced a new feature in May with the launch of Live Trading on its social platform, Binance Square, which combines content and execution.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
