Polyhedra’s ZKJ Token Crashes 91% in a Day—Here’s What Went Wrong

Blood in the water: Polyhedra’s ZKJ token just got mauled by the crypto bears, shedding 91% of its value in 24 brutal hours. Was it a hack, a rug pull, or just another Tuesday in DeFi?

Anatomy of a collapse

The token’s death spiral triggered panic sells across exchanges—proof that even zero-knowledge proofs can’t hide catastrophic losses. Trading volumes spiked 300% as bagholders scrambled for exits.

Silver lining for degens?

Some opportunistic traders are already calling this a ‘generational buying opportunity’—because nothing screams ‘smart money’ like catching falling knives.

Closing thought: Maybe those ‘stablecoin’ yields weren’t so stable after all. Funny how that works when the house always wins.

KOGE, created by 48 Club DAO, shares liquidity with ZKJ and has been promoted through Binance’s Alpha Points program. Because of their close trading link, the crash in one token triggered a chain reaction in the other. KOGE’s price dropped from $62 to $24, while ZKJ fell from nearly $2 to $0.33.

On-chain data revealed several large wallets farming Alpha Points before the crash. One wallet withdrew over $3.7 million in KOGE and $530,000 in ZKJ. Two others pulled nearly $5 million combined, triggering a “liquidation cascade,” according to Binance.

Adding to the panic, 15.5 million ZKJ tokens are set to unlock on June 19, possibly adding $10 million in sell pressure to an already weak market. In response, Binance has updated its Alpha Points rules. From June 17, trades between Alpha tokens like KOGE and ZKJ won’t count toward user rewards.

Polyhedra says it’s reviewing the incident and maintains that its Core technology remains strong.

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