ZKJ Token Plunges 83% Amid Abnormal Transactions

Polyhedra Network's ZKJ token experienced a dramatic 83% plunge in value, falling from $2 to 31 cents, following a series of "abnormal on-chain transactions" involving the ZKJ/KOGE trading pair. The sudden liquidity crunch triggered a significant market collapse, with the token's market cap dropping nearly $500 million in a short period. Binance attributed the collapse to large holders removing tokens, leading to a "liquidation cascade in the market."

The ZKJ token, which serves as the utility and governance token for Polyhedra Network, initially fell 60% from $1.92 to $0.76 within a 90-minute window. It briefly recovered to $1.41 before experiencing another sharp decline to $0.32, where it has since stabilized. The token's price volatility was attributed to a series of abnormal transactions, which raised concerns about market manipulation and liquidity issues.

Polyhedra Network, an interoperability-focused crypto project leveraging zero-knowledge proofs, acknowledged the situation and assured users that the network's fundamentals remain intact. The project is closely reviewing the events and plans to provide more information as it becomes available. However, some onlookers have speculated that the price fall could be linked to a recent token unlock, though these claims have not been corroborated by major crypto analytics platforms.

Binance, which facilitated the trading of ZKJ and KOGE tokens, announced changes to its Alpha Points calculation to ensure market fairness and stability. Starting from June 17, the trading volume of trading pairs between Alpha tokens will no longer count towards Alpha Points calculation, aiming to reduce systemic risks of concentration. This move is part of Binance's efforts to mitigate the impact of abnormal transactions and maintain market stability.

The sudden plunge in ZKJ's value highlights the volatility and risks associated with cryptocurrency markets. The incident underscores the importance of robust market surveillance and regulatory frameworks to prevent market manipulation and ensure fair trading practices. As the investigation into the abnormal transactions continues, the crypto community awaits further updates from Polyhedra Network and Binance on the measures being taken to address the issue and restore market confidence.