In the aftermath of a significant price drop in ZKJ tokens, Tiancheng Xie, Polyhedra Network’s co-founder, has assured stakeholders that his company will continue to repurchase its tokens. The sudden depreciation of ZKJ’s value was reportedly due to a targeted market attack.
“We are committed to buying back more tokens. However, our immediate focus is to understand the current situation and take measures to prevent future financial attacks,” Xie posted on Monday.
The ZKJ token witnessed a dramatic drop from approximately $2 to 30 cents within a few hours on Sunday. Following this, Polyhedra released a preliminary report detailing potential reasons behind the crash. Among these factors were substantial token deposits resulting from an alleged coordinated onchain liquidity attack, large-scale deposits by Wintermute into centralized exchanges, and ensuing liquidations on these platforms.
Despite facing criticism, Xie remained resilient. “While we are under scrutiny, we have faced such situations before. We have previously turned criticism into commendation and I am confident we can do it again, even better,” he stated.
Having started trading in March, the ZKJ token quickly peaked at around $3.40, but soon plummeted to a low near $1.10. The token remained mostly stable before gradually climbing again in November, according to data from The Block.
Polyhedra, the creator of the lightning-fast zero-knowledge interoperability protocol zkBridge, had achieved a $1 billion valuation in March 2024 following a strategic funding round of $20 million. Notable investors from that round included Polychain Capital, Animoca Brands, and Hashkey Capital.
Sunday’s crash represents a major setback for the company that had previously shown promising growth.
