ZKJ crypto price pumps 20%: is this a dead cat bounce? Polyhedra's $ZKJ crypto price has rebounded, but this could be a risky dead cat bounce or bull trap
[THE BLOCK] Polyhedra co-founder says more buybacks coming after ZKJ token crashed due to 'attack $ZKJ
.@zachxbt warns suspected ZKasino fraudster may be linked to new crypto venture WhiteRock via @pelimatos https://t.co/53CrKrHItB
Polyhedra's cryptocurrency token ZKJ experienced a dramatic price collapse of over 80% within 24 hours, plummeting from $1.92 to below $0.78, resulting in a market capitalization drop from $600 million to approximately $93 million. Concurrently, the KOGE token also fell by more than 60%, trading at around $23.61. The crash was triggered by abnormal on-chain transactions and a coordinated liquidity drain involving multiple large holders and wallets, including the Polyhedra team using multiple wallets to sell off ZKJ. This activity led to a cascade of liquidations exceeding $99 million, accounting for over 81% of all crypto liquidations during the period. Binance reported that the volatility was due to large holders withdrawing liquidity across multiple exchanges and chains, causing a liquidation cascade. The tokens had been subject to high wash trading volumes and suspicious on-chain activity, with over 150 wallets involved and an estimated 80% of trading volume being artificial. Polyhedra's co-founder Tiancheng Xie acknowledged the attack, stating the team is investigating the incident and plans to conduct further buybacks to stabilize the token and prevent future financial attacks. The situation remains under review, with the Polyhedra team promising additional updates. The incident has raised concerns about market manipulation and the security of liquidity in decentralized finance tokens.
