Polyhedra’s ZKJ Token Plunges 83% Amid Liquidity Attack and Coordinated CEX Sell-Off, Triggering Market Liquidations
Polyhedra’s ZKJ token experienced a dramatic 83% price crash, falling from $1.92 to as low as $0.32 within hours, triggered by a coordinated liquidity attack and large-scale withdrawals from the ZKJ/KOGE pool on PancakeSwap. The attack exploited vulnerabilities in low-liquidity pools, leading to aggressive selling and cascading liquidations across both decentralized and centralized exchanges. Wintermute was identified as transferring millions of ZKJ tokens to exchanges during the crash, intensifying the sell-off and wiping out $500 million in market capitalization. Abnormal trading activity on centralized exchanges further exacerbated the volatility, shaking trader confidence and causing the token to drop to $0.39. Polyhedra is actively investigating the incident in collaboration with exchanges and has advised caution to ZKJ holders. The team is implementing enhanced security measures to prevent similar attacks. This incident highlights the risks of low-liquidity pools and concentrated token holdings, raising wider concerns about the security and stability of both decentralized and centralized crypto platforms.
Bearish
The news details a severe security breach and subsequent liquidity attack that sent ZKJ’s price plummeting by 83%, leading to large-scale market liquidations and the loss of $500 million in market cap. The involvement of major players and abnormal activity on both DEX and CEX platforms highlight lingering vulnerabilities in token infrastructure and market stability. While Polyhedra’s efforts to enhance security could provide long-term reassurance, the immediate impact is sharply negative, eroding trader confidence and triggering heightened volatility. Historically, such dramatic price crashes weigh heavily on near-term sentiment, leading to continued pressure on the token price and increased caution among traders.