The Polyhedra Network (ZKJ) token has plunged 91% after abnormal on-chain activity.
Binance has blamed whale exits and a liquidation cascade for the token crash.
The upcoming June 19 token unlock may trigger further price drops.
The cryptocurrency market has once again been rocked by a dramatic price collapse, this time involving Polyhedra Network’s native token, ZKJ.
The ZKJ token has suffered an unprecedented decline of over 91% in less than 24 hours, sending shockwaves across exchanges and drawing scrutiny from regulators, investors, and analysts alike.
ZKJ, which had been trading steadily around $2.00 for over a month, crashed to a record low of $0.2676 on June 15, 2025, wiping out nearly $500 million in market capitalisation.
This price crash has raised serious concerns over liquidity risks, tokenomics structure, and the influence of large holders in decentralised finance.
What caused the sudden Polyhedra Network (ZKJ) price collapse?
The ZKJ price collapse began early on June 15 when Polyhedra Network posted on X (formerly Twitter) that a wave of “abnormal on-chain transactions” had struck the ZKJ/KOGE trading pair.
Dear Polyhedra community — we want to emphasize that the fundamentals of Polyhedra remain strong, both in our technology and in the incredible support from our community. We’re continuing to build and push forward as planned.Today’s price drop was caused by a series of abnormal…
— Polyhedra (@PolyhedraZK) June 15, 2025
Within hours, the token’s price plummeted by more than 83%, as market participants scrambled to understand what had triggered the meltdown.
Binance later weighed in, attributing the collapse to a liquidity crisis stemming from large-scale withdrawals involving KOGE, a token closely paired with ZKJ.
According to the exchange, these withdrawals created a “liquidation cascade” as major wallets began offloading their holdings.
Binance is aware that ZKJ and KOGE have experienced significant price volatilities and our initial findings indicate the developments were a result of large holders removing on-chain liquidity, and liquidation cascade in the market.
In order to maintain market fairness and… pic.twitter.com/O89hpRVaQz
— Binance (@binance) June 15, 2025
As KOGE’s USDT pool was drained, traders moved their assets into the ZKJ/USDT pool, which quickly became overloaded.
This sudden shift overwhelmed the system, accelerating the sell-off and deepening the decline in ZKJ’s value.
Massive withdrawals and whale activity
Blockchain data has revealed several wallets that had been actively farming Alpha Points before the crash.
One wallet alone withdrew more than $3.7 million in KOGE and $530,000 in ZKJ.
Two other wallets combined pulled out nearly $5 million, further intensifying the downward spiral.
These actions suggest the involvement of large holders, commonly known as whales, whose exits likely triggered cascading liquidations across leveraged positions.
As prices tumbled, margin calls were activated, leading to forced liquidations that compounded the selling pressure.
Although some community members have speculated about foul play, no leading blockchain analytics platform has verified such claims.
Polyhedra, for its part, insists it is conducting a thorough review and maintains that its core technology remains unaffected.
Binance has altered its Alpha Points rules for ZKJ and KOGE
In response to the unfolding situation, Binance announced a major change to its Alpha Points rewards program.
Starting June 17, trades between Alpha tokens, including ZKJ and KOGE, will no longer count toward Alpha Points calculations.
This policy shift is aimed at reducing systemic risk and discouraging concentrated trading behaviors that can lead to abrupt market failures.
Binance’s decision is being viewed as a proactive step to restore market integrity and reduce manipulation.
Upcoming token unlock adds to the bearish pressure
Further adding to investor anxiety is the imminent unlock of 15.5 million ZKJ tokens scheduled for June 19.
Valued at approximately $10 million, this unlock could flood the market with fresh supply at a time when confidence is already severely shaken.
Given that this represents more than 5% of the current circulating supply, market analysts warn that another sharp drop could occur if holders rush to sell upon unlocking.
The timing could not be worse for a token already reeling from its steep fall.
