The ZKJ token of Polyhedra Network crushed almost 60% in less than an hour on June 15, destroying more than $ 360 million in market capitalization.
Koge, the 48 -club DAO governance token, also dropped by 50% during the same window, losing more than $ 100 million in market capitalization.
ZKJ faces poor liquidity management
The net sale started when the Koge / USDT liquidity pool was exhausted, leaving liquidity suppliers unable to leave. The sale of panic followed while investors began to convert Koge to ZKJ.
According to the first reports of the community, the Koge team failed to add USDT to its liquidity pool. This triggered what some users called a “carpet on both sides”.
Without USDT in the Koge swimming pool, the holders rushed to unload Koge in the ZKJ pool, which was still actively defended by his team.
However, the rapid influx submerged the ZKJ / USDT pair, causing a domino effect that landed the price of ZKJ and the confidence of investors.
Members of the 48 Club Dao, the group behind Koge, expressed their indignation against the incident, accusing the negligence and mismanagement team.
Social media has been flooded with publications requiring the responsibility of the two projects. The expression “robust on both sides” trendy in the circles of cryptography.
This incident seriously damaged confidence in the two ecosystems, users calling into question the sustainability of their liquidity strategies.
Beyond liquidity problems, the market structure has added additional pressure. A 5.3%zKJ token unlocking, worth $ 32 million, is later scheduled for this week.
With the collapse of the Binance alpha volume, analysts warned that robots and whales dominate control books, exacerbating volatility in the two tokens.
ZKJ and Koge: narrowly linked ecosystems
The crash highlights the intertwined nature of ZKJ and Koge. The two tokens are frequently twinned in liquidity pools and used in agricultural strategies.
While ZKJ feeds the infrastructure of Zkbridge and ZKP, Koge operates as a governance token for 48 club – a group focused on the BNB DEFI channel.
The recent activity of coordinated agriculture and arbitration had inflated volumes between the two, which makes them vulnerable to liquidity shocks.
Non-liability clause
In membership of the Trust project guidelines, Beincrypto has embarked on transparent impartial reports. This press article aims to provide precise and timely information. However, readers are invited to check the facts independently and consult a professional before making decisions according to this content. Please note that our terms and conditions, our privacy policy and our non-responsibility clauses have been updated.
