Polyhedra Network’s ZKJ Token Plummets 83% Amid Liquidity Attacks
The Polyhedra Network recently faced a severe setback as its ZKJ token experienced an 83% price crash. This dramatic drop was attributed to coordinated liquidity attacks and significant deposits by Wintermute into centralized exchanges. The token’s value fell from $1.92 to $0.32, wiping out roughly $500 million in market value.
Understanding the Liquidity Attack on ZKJ
Several wallets coordinated an on-chain liquidity attack, targeting the ZKJ/KOGE liquidity pool on PancakeSwap. This was followed by aggressive sell-offs of ZKJ tokens. The affected pools had fragile liquidity, worsening the sell pressure.
Wintermute’s Impact on the Crash
A Wintermute address deposited over 3.39 million ZKJ tokens to centralized exchanges around the crash time. These actions, combined with the liquidity attack, led to extreme market volatility.
Community and Project Responses
The incident sparked a blame game between Polyhedra, KOGE, and Wintermute. Tiancheng Xie, Polyhedra’s co-founder, accused KOGE of ‘rugging all of us,’ a claim denied by a Binance Square account linked to KOGE.
Key Facts
- ZKJ token price dropped by 83% in hours.
- Coordinated liquidity attack targeted ZKJ/KOGE pool on PancakeSwap.
- Wintermute deposited over 3.39 million ZKJ tokens around the crash time.
- Approximately $500 million in market value was wiped out.
