The cryptocurrency market saw a dramatic event as Polyhedra Network’s native token ZKJ crashed by over 85% in just a few hours. The token’s price dropped from $2 to $0.26 triggering panic among traders and wiping out millions in liquidations.
According to data from Lookonchain, trouble started when several large wallets began pulling out liquidity from the ZKJ and KOGE trading pair. Six whale wallets alone sold around 5.23 million ZKJ tokens for $9.66 million.
This sudden sell-off caused a chain reaction, leading to more than $99 million worth of long positions getting liquidated, accounting for over 81% of all crypto market liquidations within a span of four hours.
Once a popular choice for farming Binance Alpha points, ZKJ’s downfall has raised serious concerns. Some crypto analysts are now calling it a possible well-planned “rug pull,” where insiders quietly pump a token’s price before dumping it for profit.
pointed out that it took just 40 days from the launch of Binance Alpha for this collapse to happen, fueling suspicions.
about the ZKJ crash days before it happened, calling it an “avalanche waiting to happen.” They shared on social media that they had been tweeting warnings for the past two days, sensing the collapse was near. Here’s a breakdown of what might have happened, as explained by the expert.
Retail traders were struggling.
Big players stocked up early.
Binance Wallet’s LP point system attracted inexperienced traders.
Someone blew the whistle.
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