Polyhedra Community (ZKJ) plunged 83% on Sunday after a collection of “irregular on-chain transactions” involving the ZKJ/KOGE (KOGE) buying and selling pair — a collapse Binance stated was triggered by a sudden liquidity crunch.
“Immediately’s value drop was attributable to a collection of irregular on-chain transactions inside a really brief interval on the ZKJ/KOGE buying and selling pair,” Polyhedra posted to X on June 15 after ZKJ’s market cap fell practically $500 million in 9 hours, whereas one other tracker exhibits the plunge occurred in lower than two.
Binance stated the collapse of ZKJ and KOGE resulted from massive holders eradicating tokens, inflicting a “liquidation cascade out there.”
Some onlookers have linked the value fall to a latest token unlock, whereas accusing Polyhedra of foul play, although no main crypto analytics platform has corroborated these claims.
Cointelegraph reached out to Polyhedra for remark however didn’t obtain a right away response.
Polyhedra to make autopsy
Polyhedra, an interoperability-focused crypto venture that leverages zero-knowledge proofs, stated it was “carefully reviewing the state of affairs” and would offer extra data when attainable, however assured customers that the community’s fundamentals stay intact.
Irregular transactions, irregular value motion
The ZKJ token — Polyhedra Community’s utility and governance token — fell 60% from $1.92 to $0.76 in a 90-minute window by June 15 at 2:32 am UTC, CoinGecko knowledge exhibits.
It made a short-lived comeback, rising to $1.41 over the following 90 minutes earlier than plunging downward and sideways over the following six hours.
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Afterward June 15 at about 9:25 pm UTC, the ZKJ token took one other sharp fall from $0.77 to $0.32, the place it has been buying and selling flat.
Almost $500 million in market worth has been worn out by ZKJ’s sharp fall in consequence.
Binance modifications Alpha Factors calculation
Each ZKJ and KOGE — a governance token for BNB48 Membership within the Binance ecosystem — had been traded to earn Alpha Factors as a part of Binance’s scoring system to guage and reward person engagement inside the Binance Alpha ecosystem and Binance Pockets.
Nonetheless, Binance says it should modify the calculation guidelines of its Alpha Factors token rewards program from June 17 onward to make sure market equity and stability, and to “scale back systemic dangers of focus.”
“Ranging from 00:00 UTC on June 17, 2025, the buying and selling quantity of buying and selling pairs between Alpha tokens will not rely in the direction of Alpha Factors calculation,” Binance stated.
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