Did Polyhedra Trigger the ZKJ Cost to Crash by 90%?
ZKJ crashed 90% in an hour. Now all eyes are on Polyhedra. The post Did Polyhedra Trigger the ZKJ Cost to Crash by 90%? appeared first on Cryptonews.
Key Takeaways:
ZKJ token lost over 90% of its worth in one hour, triggering suspicions of a rug pull possibly involving wallets linked to the Polyhedra team. Liquidity pools connected to Binance Alpha Points were drained during the crash, raising concerns about oversight and platform risk. High APYs might have motivated traders to hold ZKJ, magnifying losses once liquidity disappeared. The ZKJ cost, issued by the Polyhedra job, collapsed by 90% in just one hour, activating panic across the crypto community. The event unfolded amidst growing attention to Binance Alpha Points farming, where ZKJ was actively used.
Source: CoinGecko
Did the Polyhedra Group Crash the ZKJ Rate on Purpose?
Following the unexpected rate drop, community members began searching for explanations. Some even created an illusion of healthy volume by first swapping KOGE for ZKJ, then quickly disposing their ZKJ holdings.
The first signs of trouble came from KOGE. Its pool ran out of USDT, leaving LPs stuck without exit liquidity. Traders rushed to switch KOGE into ZKJ starting a wave of panic breaking and selling ZKJ’s price floor. Both tokens began to fall
Binance Alpha Points Involvement Raised Red Flags
The KOGE/ZKJ pool was the main liquidity source utilized in Binance’s Alpha Points program, which made the situation even more concerning.
Folly and Guts: How I Held $ZKJ, Thought, and Ended Up With Nothing
I didn’t sell my $ZKJ after the airdrop. I’m in it for the long run. I didn’t want to be the guy…pic.twitter.com/9OQhthYRL3
Some users also pointed out that the Yearly Portion Yield (APY) for the ZKJ/KOGE pair on Binance Alpha Points was close to 700%, which might have served as bait for unwary investors.
Adding to the pressure, a major token unlock is scheduled for June 19, with 15.53 million ZK tokens set to go into flow.
