The Polyhedra team has released an initial price crash report after the $ZKJ token dropped by 80% in a day on 15th June.
Author: Sahil Thakur
The ZKJ token, native to the Polyhedra Network, suffered a dramatic price crash on June 15–16, 2025, falling over 80–91% in less than 24 hours. Prices dropped from around $2.00 to as low as $0.2530–$0.33, wiping out nearly $500 million in market value and triggering over $99 million in liquidations. The event sparked widespread fear, uncertainty, and doubt (FUD) across the crypto community.
Multiple wallets withdrew liquidity and dumped large amounts of ZKJ in a coordinated manner:
These actions drained liquidity from the ZKJ/KOGE pool, where liquidity was fragile and concentrated. KOGE’s lack of USDT liquidity shifted sell pressure onto ZKJ/USDT, worsening the price impact.
The ZKJ/KOGE pair had been a popular choice for Binance Alpha farming. A recent reduction in reward incentives weakened the pool’s stability.
With PancakeSwap V3’s concentrated liquidity, any rapid price move caused slippage and made the pool more volatile. These conditions enabled manipulation.
Polyhedra’s team clarified that they did not sell ZKJ. Instead, they provided ZKJ, BNB, USDT, and USDC to DEX market makers for liquidity.
As sell pressure grew, market makers deployed over $30 million worth of liquidity. They used it to defend price levels across DEXs, particularly in ZKJ/USDT and KOGE/ZKJ pairs.
However, due to aggressive dumping, this liquidity was converted into ZKJ, further concentrating supply and intensifying the crash.
The price drop triggered massive liquidations on CEXs like Bybit:
These auto-sell events pushed the price lower, creating a feedback loop of liquidations.
Wintermute, a known market-making firm, deposited over 3.39 million ZKJ to exchanges during the crash:
Polyhedra released statements on X, reaffirming that the project’s core technology — including its zkBridge interoperability protocol — remained unaffected.
The team stated that the crash was not caused by a protocol flaw, but rather by external, malicious activity. Investigations into the coordinated behavior are ongoing.
The crash caused widespread panic. The extreme drop in market value and liquidation volume triggered doubts about security and stability.
However, industry analysts and some community voices pointed to the rapid coordinated activity as a targeted manipulation, not a reflection of the project’s fundamentals.
Polyhedra’s upcoming developments, such as zkBridge integrations and cross-chain infrastructure, remain on track.
Despite the crash, ZKJ has shown some price recovery and remains listed across major exchanges. The Polyhedra team is working on a full post-mortem and aims to release additional security measures and liquidity protocols to prevent future incidents.
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