ZKJ and KOGE Plunge: Binance Alters Alpha Points After $500M Market Crash, Exposing Liquidity Risks
On June 15, 2025, two major cryptocurrencies on the Binance Alpha platform—ZKJ (Polyhedra Network) and KOGE (48 Club DAO)—experienced a dramatic crash, with ZKJ tumbling by up to 84% and KOGE falling more than 60%. ZKJ’s market capitalization plunged by nearly $500 million within hours, largely due to significant liquidity withdrawals by whale investors and unusual on-chain activities tied to the ZKJ/KOGE trading pair. This resulted in cascading forced liquidations totaling over $99 million, severely impacting leveraged traders. Over 81% of all crypto liquidations in that period were attributed to ZKJ, with several traders losing more than $1 million each. Blockchain analysts suspect coordinated action among three large addresses, which exploited high trading volumes and removed liquidity, intensifying the crash. In response, Binance announced that, effective June 17, trading volume between Alpha tokens will no longer count toward Alpha Points, aiming to boost market fairness and reduce systemic risk. This event highlights the vulnerability of DeFi and points-based trading incentives to liquidity shocks and centralized token holding risks. Traders are urged to exercise heightened caution when engaging with lower-liquidity altcoins, as similar liquidity events may trigger sharp declines and force liquidations.
Bearish
The sharp crash of ZKJ and KOGE, driven by large-scale liquidity withdrawals and cascading liquidations, triggered multi-million-dollar trader losses and decimated both tokens’ market values. Binance’s subsequent adjustment of its Alpha Points mechanism aims to restore stability but also acknowledges underlying systemic vulnerabilities. The concentration of holdings and reliance on points incentives amplified the crash. Historically, such events exert bearish pressure on affected tokens in both the short and potentially longer term, as trader confidence diminishes and liquidity dries up. The immediate fallout—severe price drops, liquidations, and trust erosion—will likely keep ZKJ and KOGE bearish until clear recovery signals or structural reforms emerge.