Key Takeaways:
ZKJ token lost over 90% of its value in one hour, sparking suspicions of a rug pull possibly involving wallets linked to the Polyhedra team.
Liquidity pools connected to Binance Alpha Points were drained during the crash, raising questions about oversight and platform risk.
High APYs may have encouraged traders to hold ZKJ, amplifying losses once liquidity disappeared.
The ZKJ price, issued by the Polyhedra project, collapsed by 90% in just one hour, triggering panic across the crypto community. Users and analysts are now asking whether this was a sudden liquidity failure or a carefully planned rug pull involving the project’s own team.
Suspicions intensified after on-chain researchers flagged a series of unusual transactions tied to wallets allegedly connected to the project. The incident unfolded amid growing attention to Binance Alpha Points farming, where ZKJ was actively used.
Source: CoinGecko
Did the Polyhedra Team Crash the ZKJ Price on Purpose?
Following the sudden price drop, community members began searching for explanations. Some traders concluded that the team behind Polyhedra had orchestrated the event. According to on-chain researcher Tracer, the team may have used multiple wallets to quietly exit their positions and drain liquidity.
This pattern follows a typical “exit liquidity” scenario. A project builds hype with regular updates, strong social media presence, and visible partnerships. Meanwhile, the token gains value, and traders buy in, expecting long-term growth. Then, insiders pull out suddenly, leaving others to absorb the losses.
In this case, however, it’s still unclear whether Polyhedra was malicious from the start or if something went wrong later.
Three wallets reportedly linked to the team interacted with the Koge (KOGE) pool paired with ZKJ. These wallets began removing large amounts of liquidity from the KOGE/USDT pool, which caused the ZKJ price to fall by more than 80%, from $63 to $25. As soon as traders lost the ability to exit through KOGE, many switched into ZKJ instead, hoping to salvage funds. This, in turn, inflated the ZKJ pool.
At the same time, the wallets suspected of leading the sell-off began unloading large amounts of ZKJ into the market. Some even created an illusion of healthy volume by first swapping KOGE for ZKJ, then quickly dumping their ZKJ holdings.
Binance Alpha Points Involvement Raised Red Flags
The KOGE/ZKJ pool was the main liquidity source used in Binance’s Alpha Points program, which made the situation even more concerning. Community members began questioning how such a high-profile failure ended up being part of Binance’s ecosystem.
Polyhedra denied that the team was responsible for the crash. A session with co-founder Tiancheng Xie is scheduled for June 17.
A New Lesson for Crypto Investors?
Many in the crypto community described the ZKJ price crash as a textbook scam. The project’s leadership rejected those accusations. On his personal X (formerly Twitter) account, Tiancheng Xie promised a buyback plan but added that “we need to figure out the current situation.”
A trader known as Poodle said he received ZKJ during an airdrop and chose to keep farming instead of selling. As a result, he lost nearly $9,000.
Some users also pointed out that the Annual Percentage Yield (APY) for the ZKJ/KOGE pair on Binance Alpha Points was close to 700%, which may have served as bait for unsuspecting investors.
Adding to the pressure, a major token unlock is scheduled for June 19, with 15.53 million ZK tokens set to enter circulation. With liquidity already drained and many holders selling at a loss, this increased supply could drive prices even lower if new buyers don’t step in.
Source: Tokenomist
Bybit has already announced that the June 18 Perpetual Contract for ZKJ/USDT will be suspended. Although Polyhedra responded and plans to hold a public Q&A, investor losses and the complete wipeout of ZKJ and KOGE liquidity pools have raised serious doubts about the project’s credibility.
Even if the team did not directly cause the collapse, the outcome has already damaged community trust. Many are now watching closely to see whether the project introduces any payback or restitution plan. This incident could end up as yet another cautionary example of the risks behind crypto’s high-yield, high-volatility culture.
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