Polyhedra Network’s ZKJ token crashed nearly 60% in under an hour on June 15, wiping out over $360 million in market capitalization.
KOGE, the governance token of 48 Club DAO, also dropped by 50% during the same window, losing more than $100 million in market cap.
ZKJ Faces Major Liquidity Mismanagement
The sharp sell-off began when the KOGE/USDT liquidity pool was depleted, leaving liquidity providers unable to exit. Panic selling followed as investors began converting KOGE into ZKJ.
According to early community reports, the KOGE team failed to add USDT to its liquidity pool. This triggered what some users called a “rug from both sides.”
With no USDT left in the KOGE pool, holders rushed to offload KOGE into the ZKJ pool, which was still actively defended by its team.
However, the rapid influx overwhelmed the ZKJ/USDT pair, causing a domino effect that tanked ZKJ’s price and investor confidence.
Members of the 48 Club DAO, the group behind KOGE, expressed outrage over the incident, accusing the team of negligence and mismanagement.
Social media was flooded with posts demanding accountability from both projects. The phrase “rugged from both sides” trended within crypto circles.
This incident has severely damaged trust in both ecosystems, with users questioning the sustainability of their liquidity strategies.
Beyond liquidity concerns, market structure added further pressure. A 5.3% ZKJ token unlock, worth $32 million, is scheduled later this week.
With Binance Alpha volume collapsing, analysts warned that bots and whales dominate the order books, exacerbating volatility in both tokens.
ZKJ and KOGE: Tightly Linked Ecosystems
The crash highlights the intertwined nature of ZKJ and KOGE. Both tokens are frequently paired in liquidity pools and used in farming strategies.
While ZKJ powers zkBridge and ZKP infrastructure, KOGE operates as a governance token for 48 Club—a group focused on BNB Chain DeFi.
Recent coordinated farming and arbitrage activity had inflated volumes between the two, making them vulnerable to liquidity shocks.
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