Polyhedra Team Buys Back ZKJ Tokens After Nearly 90% Crash

ZKJ Collapse and Token Buyback Plan

Within a few hours on June 15, 2025, the price of Polyhedra Network’s ZKJ token plummeted from around $1.92 to $0.30, wiping out nearly $500 million in market capitalization. According to Polyhedra’s preliminary report, the crash was triggered by a “coordinated liquidity attack” on the ZKJ/KOGE trading pair at PancakeSwap. Multiple wallets withdrew more than $7 million in liquidity, including one address that withdrew $4.3 million and sold 1.57 million ZKJ, causing heavy selling pressure. At the same time, Wintermute, a cryptocurrency exchange, transferred more than $3.39 million ZKJ to exchanges like Bybit, coinciding with the sharp price drop. The liquidation effect on CEXs, with more than $94 million in long positions closed, further deepened the crash.

Co-founder Tiancheng Xie announced that Polyhedra would buy back ZKJ to support the price, while also implementing measures to prevent future attacks. The team also injected $30 million in liquidity during the price drop, but this effort was not enough to stem the crisis. Currently, ZKJ is trading around $0.42, a slight recovery of 23% in 24 hours, with a trading volume of $372 million.

Polyhedra and Cryptocurrency Market Risks

Polyhedra Network is a pioneer in blockchain interoperability, featuring zkBridge – a protocol that enables the transfer of assets and data between blockchain networks such as Ethereum, Bitcoin, and over 20 other Layer-1 and Layer-2 networks. ZKJ, a governance and utility token, is used to pay for zero-knowledge proof services, staking, and network governance. With a market cap of approximately $130 million and a circulating supply of 310 million tokens, Polyhedra has previously attracted attention for raising $20 million in 2023 and Expander technology – the world’s fastest zero-knowledge proof system.

However, the event exposed the inherent risks of the crypto market, especially with thinly liquid tokens. The ZKJ/KOGE pair on PancakeSwap, with its centralized liquidity and reliance on KOGE (the governance token of 48 Club DAO), became a weak point when Binance reduced the Alpha Points rewards for the pair, reducing the attractiveness of the liquidity pool. Similar recent incidents, such as the 97% crash of Mantra's OM token, showed that DeFi projects are vulnerable to liquidity attacks or sell-offs from whales.

The crypto market in 2025 is hot, with $50 billion in institutional capital pouring into Bitcoin and Ethereum ETFs and projects like Cardinal Protocol connecting Bitcoin to DeFi. However, events like the ZKJ crash remind investors of volatility and the risk of market manipulation.

Evaluation and Conclusion

The more than 80% crash in the price of Polyhedra Network’s ZKJ token is a wake-up call about the risks in the cryptocurrency market, where thin liquidity and weak tokenomics can be exploited. While the team called it a “financial attack” and pledged to buy back the tokens, structural issues such as unstable liquidity pools and supply concentration remain significant challenges. Polyhedra needs to take decisive action to restore confidence and protect investors.

With the crypto market in full swing and projects like the Solana ETF and XRP reserve gaining traction, the event is a lesson for both investors and projects on the importance of transparency and governance. Can Polyhedra overcome the crisis and regain its footing? Stay tuned for the latest developments!

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.

Compiled and analyzed by HCCVenture

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