Polyhedra Network’s ZKJ Crashes 60% Amid Liquidity Crisis
Polyhedra Network’s ZKJ token crashed nearly 60% in under an hour on June 15, wiping out over $360 million in market capitalization.
KOGE, the governance token of 48 Club DAO, also dropped by 50% during the same window, losing more than $100 million in market cap.
The sharp sell-off began when the KOGE/USDT liquidity pool was depleted, leaving liquidity providers unable to exit. Panic selling followed as investors began converting KOGE into ZKJ.
According to early community reports, the KOGE team failed to add USDT to its liquidity pool. This triggered what some users called a “rug from both sides.”
ZKJ Price Crash. Source: CoinGecko
With no USDT left in the KOGE pool, holders rushed to offload KOGE into the ZKJ pool, which was still actively defended by its team.
However, the rapid influx overwhelmed the ZKJ/USDT pair, causing a domino effect that tanked ZKJ’s price and investor confidence.
