Well, that escalated quickly. Polyhedra Network’s native token, ZKJ, just dropped over 83% on June 15, hitting a dismal $0.3073, after a chain of wild events involving abnormal transactions and mass liquidity withdrawals linked to its sibling token, KOGE. If you thought crypto was all sunshine and rainbows, think again.
According to a post on X by Polyhedra, the disaster was caused by “abnormal on-chain transactions” involving the ZKJ/KOGE trading pair. KOGE, which is issued by the 48 Club DAO, shares liquidity pools with ZKJ and has been incentivized through Binance’s Alpha Points program. What could possibly go wrong?
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.
— Polyhedra (@PolyhedraZK) June 15, 2025
Today’s price drop was caused by a series of abnormal…
I guess the trouble started when traders converted KOGE into ZKJ in huge amounts, as the liquidity in the KOGE/USDT pool dried up. This flooded the ZKJ/USDT pool, triggering a domino effect. Big KOGE and ZKJ holders pulled their tokens from on-chain pools, starting a “liquidation cascade” that sent both assets spiraling down. KOGE plummeted from $62 to $24, and ZKJ dropped from nearly $2 to $0.30. Ouch.
A Chain Reaction Fueled by Farming and Unlocks
On-chain analysts pointed fingers at wallets farming Alpha Points. One wallet, in particular, withdrew a jaw-dropping 60,000 KOGE (worth $3.7M) and 273,000 ZKJ ($530K). Two other wallets joined the fun, liquidating another $5 million worth. And just when you thought it couldn’t get worse, a scheduled unlock of 15.5 million ZKJ tokens on June 19 threatened to add about $10 million in potential sell pressure. I mean, really? Talk about piling on.
The KOGE/USDT pool was drained first, leaving holders stuck with no way out. With the liquidity gone, investors rushed to swap into ZKJ using the still-functional KOGE/ZKJ pool. The result? ZKJ redemptions went through the roof, overwhelming its USDT pair and causing the token’s price to crash to record lows. Classic chain reaction stuff.
Polyhedra Holds Its Ground, but Will the Market Listen?
Despite the collapse, Polyhedra is trying to put on a brave face, insisting that the project’s fundamentals remain strong. They’re conducting a full review of the incident because, of course, that's what you do after watching your token tank 83%. Binance stepped in by adjusting Alpha Points rules, effective June 17. From now on, trades between Alpha tokens like KOGE and ZKJ won’t count toward user point totals, which is supposed to help prevent these imbalances in the future.
Binance is aware that ZKJ and KOGE have experienced significant price volatilities and our initial findings indicate the developments were a result of large holders removing on-chain liquidity, and liquidation cascade in the market.
— Binance (@binance) June 15, 2025
In order to maintain market fairness and… pic.twitter.com/O89hpRVaQz
Meanwhile, the 48 Club DAO has stayed tight-lipped since the crash, despite having previously disclosed that KOGE was fully diluted at launch and stated no commitment to restrict token sales. Investors are, understandably, upset. Many are accusing the team of poor planning and a lack of transparency.
Yes, $KOGE was fully diluted from day one.
— 48 Club (Est. '17) (@48Club_Official) June 14, 2025
And no — 48Club never promise we wouldn’t sell. Neither did Binance for $BNB, right?
Do your own research.
Take your own risk.
Can ZKJ Recover, or Is It All Over?
Now here’s where things get interesting. If Polyhedra can restore market stability quickly, the token might just bounce back. They’ll need to provide clear insights into their liquidity structure and token utility to rebuild trust. A solid post-mortem and maybe even some structural changes like isolating the KOGE and ZKJ markets could help slow the selloff and put some wind back in ZKJ’s sails.
But let’s be real for a second, if confidence continues to drop, we could be in for a bearish scenario. Especially since another big ZKJ token unlock is coming up later this week. If they don’t come up with a clear solution, the selling pressure might just keep coming, and that could seriously hurt ZKJ’s reputation in the long run. The clock is ticking, Polyhedra, let’s see if they can pull a miracle out of their hat.
Gunel Ismayilova
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