$500 Million Vanishes Overnight as ZKJ Crashes — Is Polyhedra in Trouble?

Jakarta, Pintu News – Polyhedra network’s ZKJ token price crash has left the crypto industry in shock, having lost nearly $500 million in just a matter of hours.

A report from CoinMarketCap shows that the token plummeted more than 83% on June 16 and hit an all-time low of $0.3073. The impact of this fall wiped millions of dollars off its market capitalization and liquidity.

Let’s discuss what actually happened.

Why Did Polyhedra’s ZKJ Token Price Plummet Today?

The ups and downs of prices have become commonplace for investors. Just a few days ago, the entire crypto market collapsed, causing billions of dollars in liquidations. However, the price drop of Polyhedra’s ZKJ token this time is not directly related to that event.

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Polyhedra (ZKJ) stated that the cause of this price crash was a series of “abnormal on-chain transactions.”

According to the official announcement, a series of unusual transactions involving the ZKJ/KOGE trading pair triggered the crash. Binance referred to this event as “cascading liquidity”, which is when large holders withdraw tokens from the liquidity pool, causing a price collapse.

As a result, the Polyhedra token plunged 60% in just an hour and a half around 02:32 UTC-from a price of $1.92 to $0.076. Although it briefly tried to recover, the price collapsed again.

As of June 16, the token was trading at $0.3322, having experienced a total decline of 83%, with a remaining market capitalization of $92.28 million. When compared to its highest price, the token is already down 91%.

ZKJ Token Price Fall Breakdown

On-chain analytics platform Lookonchain reported that six whales (large holders) sold 5.23 million Polyhedra tokens, which triggered the price drop.

The whales first withdrew liquidity from the ZKJ and KOGE trading pairs, then swapped KOGE for ZKJ before engaging in mass selling. Along with this liquidity withdrawal, $102 million was lost in liquidation.

Interestingly, the price of the KOGE token also experienced the same fall as ZKJ. ETH APPLE on X (formerly Twitter) stated:

“The problem started when KOGE’s liquidity pool ran out of USDT, so LPs (Liquidity Providers) couldn’t exit their positions… This led to massive selling of KOGE into ZKJ.”

Liquidation data from CoinGlass revealed that $97.72 million of long positions were liquidated along with $4.61 million of short positions. Six traders lost $1 million each, while other holders faced significant losses.

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The crypto community also attributed the upcoming token unlock as the main reason for the crash, while some claimed that it was a planned “pump and dump”.

What Will Happen Next?

This big fall has left ZKJ token holders reeling. Some are hopeful of a recovery, but others are worried that the price will continue to fall, especially ahead of the upcoming token unlock.

A total of 15.5 million ZKJ tokens are scheduled to be released to the market on June 19, potentially creating massive selling pressure and making the token price fall deeper.

In addition, the reputation of the Polyhedra platform is now under the spotlight. If not fixed soon, this could cause long-term damage to investor confidence. To date, no official solution has been announced, so uncertainty over the future of the token is high.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coingape. Here’s Why Polyhedra’s ZKJ Token Price Crash Wipes Out $500M in Hours. Accessed on June 16, 2025