Polyhedra said it’s investigating a massive plunge in the price of its governance token, which now sits at 31 cents, down from $2.
Polyhedra Network (ZKJ) plunged 83% on Sunday after a series of “abnormal on-chain transactions” involving the ZKJ/KOGE (KOGE) trading pair — a collapse Binance said was triggered by a sudden liquidity crunch.
“Today’s price drop was caused by a series of abnormal on-chain transactions within a very short period on the ZKJ/KOGE trading pair,” Polyhedra posted to X on June 15 after ZKJ’s market cap fell nearly $500 million in nine hours, while another tracker shows the plunge happened in less than two.
Binance said the collapse of ZKJ and KOGE resulted from large holders removing tokens, causing a “liquidation cascade in the market.”
Some onlookers have linked the price fall to a recent token unlock, while accusing Polyhedra of foul play, though no major crypto analytics platform has corroborated those claims.
Cointelegraph reached out to Polyhedra for comment but didn’t receive an immediate response.
Polyhedra to make post-mortem
Polyhedra, an interoperability-focused crypto project that leverages zero-knowledge proofs, said it was “closely reviewing the situation” and would provide more information when possible, but assured users that the network’s fundamentals remain intact.
Abnormal transactions, abnormal price action
The ZKJ token — Polyhedra Network’s utility and governance token — fell 60% from $1.92 to $0.76 in a 90-minute window by June 15 at 2:32 am UTC, CoinGecko data shows.
It made a short-lived comeback, rising to $1.41 over the next 90 minutes before plunging downward and sideways over the next six hours.
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Later on June 15 at about 9:25 pm UTC, the ZKJ token took another sharp fall from $0.77 to $0.32, where it has been trading flat.
Nearly $500 million in market value has been wiped out by ZKJ’s sharp fall as a result.
Binance changes Alpha Points calculation
Both ZKJ and KOGE — a governance token for BNB48 Club in the Binance ecosystem — were traded to earn Alpha Points as part of Binance’s scoring system to evaluate and reward user engagement within the Binance Alpha ecosystem and Binance Wallet.
However, Binance says it will adjust the calculation rules of its Alpha Points token rewards program from June 17 onward to ensure market fairness and stability, and to “reduce systemic risks of concentration.”
“Starting from 00:00 UTC on June 17, 2025, the trading volume of trading pairs between Alpha tokens will no longer count towards Alpha Points calculation,” Binance said.
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