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The Polyhedra Network token (ZKJ) has crashed by over 80% as a result of on-chain activity.
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Whale withdrawals caused a cascade of liquidity.
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Similar red flags are causing the event to be compared to previous meltdowns, such as LUNA.
The price of Polyhedra Network native token ZKJ plunged by 83%. This sparked fears of a similar collapse to Terra’s LUNA. The crash was triggered by “abnormal on chain activity” centered around the ZKJ/KOGE pair of trading, causing Binance flag a liquidity crisis and igniting intense debate in the crypto community.
According to CoinMarketCap, ZKJ is currently trading at $0.3328. The trading volume has dropped by 45%, to $1.8 billion. Despite assurances from the Polyhedra Team, many investors are drawing comparisons to past token explosions, raising serious concerns about the project’s state.
What caused the 83% price collapse?
The cascade started on June 15 when three whale wallets drained around $7 million worth of KOGE and ZKJ from Binance Alpha pools. The initial withdrawal drained KOGE/USDT, prompting traders into a panic-swap to ZKJ. This drained the thin liquidity in the ZKJ markets, causing an astonishing 60% drop within 90 minutes.
ZKJ’s stock market had a turnover of 18.40 (trading volumes relative to market capitalization), which is a sign of a volatile, thin market that is ripe for a crash. A lack of liquidity exacerbated the price swings. Polyhedra responded on X with a statement.
“Today’s drop in price was caused by a number of abnormal on-chain trades within a very brief period on the ZKJ/KOGE pair… We would like to emphasize that Polyhedra’s fundamentals remain strong.”
Structural Weaknesses – Unlocking and Centralization
ZKJ’s tokenomics has significant risks. ZKJ is facing a major unlock on June 19, when more than $4.5 Million in tokens valued at current crash prices will be released. This looming event has stoked fears of a front-running, where early investors and insiders sell before the flood of supply, driving prices further down.
Related:LUNC price prediction for June 2025: Bullish momentum builds above key support as buyers reclaim control
The concentration risk is also alarming: the top 10 ZKJ token holders control 68.6% total token supply. This control can allow coordinated exits – the exact behavior that was suspected in the recent crash.
Binance’s rule change on June 17, which ended its “Alpha Points”, removed incentives for trading KOGE/ZKJ, further draining liquidity.
The Ghost of LUNA and the Mantra (OM).
This isn’t a first for the crypto community to witness a collapse of this magnitude. Mantra (OM), a Real-World Asset token (RWA), has fallen more than 97% since its high of $9.04 and is now trading around $0.20.
OM’s freefall wiped out nearly $6 billion from its market cap amid allegations that the team held up to 90% token supply and could have coordinated a sale.
RelatedMANTRA Launches an Investigation into OM Token’s 92% Price Fall – What’s Next?
Mantra’s management denies these claims but has been forced to announce token buybacks and burns to restore investor trust, a tactic to shrink the supply and support prices.
Analysts have warned about dead cat bounces, which are short-lived recoveries designed to mislead retail buyers into buying the asset before it resumes its downward spiral.
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