ZKJ Token Suffers Major Crash on Abnormal Activity; Coinone and Binance Escalate Warnings Amid Whales and Liquidations

The ZKJ token, native to Polyhedra Network, suffered a sharp price crash on June 15, 2024, triggered by abnormal on-chain activity and large-scale whale withdrawals. South Korean exchange Coinone was the first to detect suspicious movements, issuing urgent warnings to its users and highlighting increased risks around ZKJ. Shortly after, Binance attributed the crash to large holders exiting their positions, which sparked a liquidation cascade among leveraged traders, further intensifying the sell-off. The rapid collapse saw ZKJ drop by as much as 83%, while another asset, Club Token (KOGE), also experienced substantial losses. In response to potential price manipulation and abnormal trading volumes, Binance revised its Alpha program, excluding specific Alpha token trading volumes from Alpha Score calculations. Both the Polyhedra and KOGE teams addressed the incidents, with Polyhedra assuring community resilience and KOGE clarifying its policy on token lockups. These developments underscore critical risks for crypto traders, including exposure to tokens with concentrated ownership, the dangers of excessive leverage, vulnerability to liquidity shocks, and the powerful role of whale activity in shaping price volatility. This event serves as a crucial reminder for traders to conduct careful due diligence, avoid overleveraging, deploy stop-loss strategies, diversify holdings, and closely monitor exchange responses and asset status—especially in small-cap or newly listed tokens.