ZKJ and KOGE Tokens Plunge 85% Amid Liquidity Withdrawals

The ZKJ and KOGE tokens experienced a dramatic flash crash, with their values plummeting by up to 85% following significant liquidity withdrawals by major holders. This event is linked to activities within the Binance Alpha ecosystem, raising concerns about market manipulation and liquidity concentration risks.

The sudden collapse of ZKJ and KOGE tokens was primarily driven by abnormal on-chain transactions. The interconnected contracts between these two tokens triggered a cascading effect, where liquidity withdrawals in one token rapidly impacted the other. Data from Lookonchain revealed that a few large wallets orchestrated substantial liquidity removals, with one wallet alone withdrawing 61,130 KOGE tokens valued at $3.76 million and 273,017 ZKJ tokens worth approximately $532,000. This massive liquidity drain caused KOGE’s price to plummet from $62 to $24 and ZKJ’s from nearly $2 to $0.30, representing declines of 61% and 85%, respectively.

On-chain analyst Ai Yi interprets these movements as a potential “harvesting operation,” suggesting a premeditated strategy targeting the high trading volumes and liquidity pools associated with Binance Alpha tokens. Ai Yi noted, “Three major addresses targeted the huge trading volume and liquidity of the two tokens in the context of Binance Alpha. Tonight, the dual pressure of ‘large withdrawal of liquidity + continuous selling’ caused ZKJ and KOGE to collapse one after another, and no one was spared.”

Furthermore, Ai Yi linked the timing of the crash to a sustained decline in Binance Alpha’s overall trading volume, which has been trending downward since early June. According to Dune Analytics, trading volume dropped sharply post-crash to around $770 million, a significant decrease from the $2 billion peak recorded on June 8.

The dramatic price drops immediately sparked allegations of price manipulation against 48Club, the issuer of KOGE. However, 48Club swiftly denied these claims and introduced a new trading reward plan designed to rebuild investor confidence and stabilize market sentiment.

In parallel, Binance announced revisions to the Alpha Points calculation methodology, effective from 00:00 UTC on June 17, 2025. The exchange attributed the volatility to large holders withdrawing liquidity combined with a liquidation cascade effect, which exacerbated price declines. Key among Binance’s adjustments is the exclusion of trading volume between Alpha tokens—such as ZKJ and KOGE—from the points calculation. This measure aims to mitigate liquidity concentration risks and promote a more equitable trading environment.

This incident has reignited debate over the sustainability and design of trading incentive programs like Alpha Points. While Polyhedra maintains that the project’s fundamentals remain intact and continues to investigate the event, investors are advised to monitor ongoing developments closely.

The ZKJ and KOGE flash crash underscores the vulnerabilities inherent in liquidity concentration and the influence of large holders within crypto incentive ecosystems like Binance Alpha. Binance’s prompt rule revisions demonstrate a commitment to enhancing market fairness and reducing systemic risks. Moving forward, stakeholders should remain vigilant about liquidity dynamics and regulatory updates to navigate these evolving market conditions effectively.