Polyhedra Network’s ZKJ token plunged over 60% after major liquidity was pulled from its pools. The crash was triggered by a liquidity drain in KOGE, sparking panic selling and community outrage.
Author: Tanishq Bodh
June 15, 2025 – Polyhedra Network’s native token ZKJ experienced a dramatic collapse, falling more than 60% in under an hour following a chain of liquidity shocks across its ecosystem. The sell-off appears linked to a simultaneous crash in the KOGE token, operated by 48 Club DAO, raising concerns about liquidity management and ecosystem design.
ZKJ’s price dropped sharply from $1.90 to below $0.30, according to CoinMarketCap, with brief volatility seeing it touch as low as $0.20 before partially rebounding. The crash wiped out over $360 million in market capitalization.
Meanwhile, KOGE also plunged by more than 50%, losing over $100 million in market value. The collapse of both tokens triggered panic across their overlapping communities.
The turmoil began when the KOGE/USDT liquidity pool was reportedly drained. Without USDT backing, KOGE holders began dumping their tokens into the ZKJ/USDT pool, which was still functioning.
However, the ZKJ pool was unable to withstand the sudden influx. Liquidity was rapidly depleted, triggering a cascade of redemptions and a sharp price freefall. This dynamic—where users fled from one collapsing asset into another—led to what community members are calling a “rug from both sides.”
Members of 48 Club DAO, the group behind KOGE, expressed frustration and anger on social media. Many accused the project teams of negligence, poor planning, and failing to protect liquidity providers.
With a ZKJ token unlock of 15.53 million tokens scheduled for this week, investor confidence remains shaky. Critics warn that further selling pressure could deepen the damage unless the teams intervene with transparency and a recovery plan.
The crash highlighted the tightly interwoven nature of ZKJ and KOGE. Both tokens have been used extensively in liquidity farming strategies and paired pools, especially on BNB Chain.
Prior to the collapse, the ecosystem had seen increased arbitrage and farming activity, which inflated volumes but may have introduced structural fragility.
ZKJ, which underpins zkBridge and ZKP infrastructure, has previously been viewed as a promising player in the zero-knowledge space. KOGE serves as the governance token for 48 Club DAO.
The incident is one of the most high-profile DeFi liquidity failures in recent months. With investor trust significantly damaged, both Polyhedra Network and 48 Club DAO may face mounting pressure to address transparency, stabilize their ecosystems, and rebuild user confidence.
So far, no official recovery roadmap has been issued by either project.
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