The Polyhedra Network’s native token, ZKJ, experienced a devastating flash crash on June 15, plummeting more than 63% in under two hours, triggering over $99 million in liquidations and sparking widespread accusations of rug-pulling across the crypto community.
Whale Wallets Trigger the Collapse
According to blockchain tracker Lookonchain, six whale wallets collectively sold 5.23 million ZKJ tokens for approximately $9.66 million, right before the crash. These wallets had previously removed liquidity from both ZKJ and KOGE, exchanging KOGE for ZKJ and then dumping ZKJ en masse. This aggressive sell-off drained liquidity and triggered a steep price drop, prompting a wave of forced liquidations for leveraged long positions.
Among those liquidated were six traders who each lost over $1 million, with ZKJ accounting for 81.3% of all crypto liquidations in just four hours, per Coinglass data.
ZKJ Coin Price Crash
ZKJ’s price nosedived from $1.98 to a low of $0.7625, marking a more than 60% fall on CoinGecko. CoinMarketCap presented an even grimmer scenario, showing the token collapsing over 80% to $0.33, wiping out the token’s market cap to under $95 million. Although ZKJ briefly rebounded to $1.41, it quickly fell back to hover around $0.80 by midday.
What’s particularly shocking is that ZKJ had been trading in a relatively stable range between $2.05 and $1.98 for over a month, making the sudden breakdown all the more alarming.
KOGE Connection and Community Backlash
Crypto X users were quick to call out what many now suspect to be a coordinated “pump and dump” or even a “long-planned harvesting operation.” A key post by user ETH APPLE alleged that the KOGE pool had run out of USDT, which left liquidity providers stranded and triggered a mass conversion of KOGE into ZKJ, ultimately crashing both tokens.
“The issue began when the KOGE pool ran out of USDT, leaving LPs unable to exit positions,” wrote ETH APPLE. “This led to a mass sell-off of KOGE into ZKJ… the KOGE team hadn’t added any USDT to the pool.”
