- Whales dumped $9.6M in ZKJ, triggering massive token crash.
- Over $99M in long positions liquidated within four hours.
- Analysts suspect $ZKJ collapse was a coordinated insider rug pull.
The cryptocurrency market saw a dramatic event as Polyhedra Network’s native token ZKJ crashed by over 85% in just a few hours. The token’s price dropped from $2 to $0.26 triggering panic among traders and wiping out millions in liquidations.
According to data from Lookonchain, trouble started when several large wallets began pulling out liquidity from the ZKJ and KOGE trading pair. Six whale wallets alone sold around 5.23 million ZKJ tokens for $9.66 million.
This sudden sell-off caused a chain reaction, leading to more than $99 million worth of long positions getting liquidated, accounting for over 81% of all crypto market liquidations within a span of four hours.
Was it a Well-planned Rug Pull?
Once a popular choice for farming Binance Alpha points, ZKJ’s downfall has raised serious concerns. Some crypto analysts are now calling it a possible well-planned “rug pull,” where insiders quietly pump a token’s price before dumping it for profit.
Related: Is $ZKJ the Next LUNA? Polyhedra Token Crashes 80% After ‘Abnormal’ On-Chain Activity
A researcher pointed out that it took just 40 days from the launch of Binance Alpha for this collapse to happen, fueling suspicions.
Another expert warned followers about the ZKJ crash days before it happened, calling it an “avalanche waiting to happen.” They shared on social media that they had been tweeting warnings for the past two days, sensing the collapse was near. Here’s a breakdown of what might have happened, as explained by the expert.
Related: Is PAX Gold Set for New Highs? Token Breaks $3,440 as Safe-Haven Demand Spikes
Retail traders were struggling. Many small investors couldn’t keep up as their scores got too high, rewards dropped, and they were no longer making profits.
Big players stocked up early. Large investors had already bought up big amounts of ZKJ and KOGE to earn LP (liquidity pool) rewards. It’s unclear if these were just whales or insiders.
Binance Wallet’s LP point system attracted inexperienced traders. The system quietly encouraged new and less experienced investors to jump in without fully understanding the risks.
Someone blew the whistle. A warning went out (even from KOGE’s official account), and people started pulling out liquidity. Once the selling started, panic spread, causing a massive price crash.
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