The crypto markets experienced sharp fluctuations over the weekend. Polyhedra Network's native token, ZKJ, shocked investors by losing 83% of its value in just a few hours following on-chain transactions on June 15. As the ZKJ price dropped from $1.92 to $0.30, the token's market value evaporated by approximately $500 million. At the center of this collapse was another token called KOGE, which was traded alongside ZKJ in connection with the Binance Alpha Points program.
The Polyhedra team described the sharp price drop as “abnormal on-chain transactions,” noting that the event was triggered by liquidity withdrawal in the ZKJ/KOGE trading pair. In a statement, Binance explained that the simultaneous withdrawal of ZKJ and KOGE tokens by large wallets resulted in a “liquidation cascade” in the market.
KOGE, which is closely related to ZKJ, was issued by the 48 Club DAO in the Binance ecosystem and offered various advantages under the Alpha Points reward program. As the trading volume between the two tokens increased due to these incentives, the sudden sell-off triggered a chain reaction in the system. The KOGE token also fell from $62 to $24 in a similar manner.
Liquidity dried up, panic selling began
The depletion of liquidity in the KOGE/USDT pool played a significant role in the collapse. When investors turned to the ZKJ/KOGE pool as an exit strategy, intense selling pressure formed in the ZKJ/USDT trading pair. According to CoinGecko data, the ZKJ token lost 60% of its value in just 90 minutes, dropping from $1.92 to $0.76. Although it showed a brief recovery, it plummeted again later that day.
On-chain analysis indicates that some wallets withdrew significant amounts of tokens to accumulate Alpha Points. One wallet withdrew approximately 60,000 KOGE (approximately $3.7 million) and 273,000 ZKJ (approximately $530,000), while two separate addresses are reported to have sold a total of $5 million worth of tokens. Additionally, the unlocking of 15.5 million ZKJ on June 19 has the potential to further increase selling pressure in the market.
Statements from Binance and Polyhedra
Following the events, Binance announced changes to its Alpha Points calculation system. Starting June 17, transaction volumes between Alpha tokens will no longer be included in the points system. This step aims to prevent similar risks from arising in the markets. As of June 17, 2025, transactions between these two tokens will be considered invalid for points accumulation.
The Polyhedra team announced that the situation is being thoroughly investigated and a comprehensive incident report will be published. It was also emphasized that the project's foundations remain solid and the technical infrastructure has not been compromised. However, there is significant distrust within the community. 48 Club DAO has not yet made an official statement.
