ZKJ Token Plummets 80%, Losing Over $439 Million in Market Cap
Polyhedra Network’s native token ZKJ experienced a dramatic decline on June 15, losing nearly 80% of its value in one day. The market capitalization dropped by over $439 million, falling to approximately $111 million from its previous value near $2.
Causes of the Decline
- Whale activity led to the massive sell-off of ZKJ and KOGE tokens.
- Top wallets removed liquidity prior to the crash.
- Six major wallets sold 5.23 million ZKJ tokens for around $9.66 million.
- More than $2 million of ZKJ was transferred to centralized exchanges within 24 hours.
- The sell-off triggered long position liquidations, with losses exceeding $1 million for several traders.
Community Reaction
- Concerns arose due to an upcoming token unlock scheduled for June 19.
- Disappointment expressed by the Polyhedra community regarding ZKJ's potential.
- Some traders drew parallels to past token collapses, suggesting centralization in token supply.
- Accusations of market manipulation were made, stating that the token lacked genuine user adoption.