“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.

The post Polyhedra Promises Further ZKJ Token Buybacks Following Alleged Market Attack appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

On June 15, Polyhedra reported the significant drop in ZKJ’s market cap, which fell close to $500 million within a time span of nine hours. This was due to a string of unusual on-chain transactions on the ZKJ/KOGE trading pair, taking place within a very short timeframe. According to Binance, the fall in the value of ZKJ and KOGE was a result of substantial holders withdrawing tokens, triggering a “liquidation cascade” in the market.

Some observers have attributed the price fall to a recent token release, and have accused Polyhedra of misconduct. However, no significant crypto analytics platform has yet confirmed these allegations. Polyhedra was contacted for a comment, but no immediate response was forthcoming.

Polyhedra, a crypto project focused on interoperability and leveraging zero-knowledge proofs, announced that they are “closely reviewing the situation”. They also reassured users that the fundamental integrity of the network remains unaffected.

On the morning of June 15, CoinGecko data revealed that the ZKJ token – Polyhedra Network’s utility and governance token – dropped by 60% from $1.92 to $0.76 within 90 minutes. A brief recovery saw the price rise to $1.41, but a downward trend resumed, causing the token to eventually fall to $0.32, erasing nearly $500 million in market value.

Binance has decided to alter the calculation rules of its Alpha Points token rewards program from June 17, in an effort to ensure market stability and fairness, and to mitigate “systemic risks of concentration”. Binance stated, “As of 00:00 UTC on June 17, 2025, the trading volume of trading pairs between Alpha tokens will no longer count towards Alpha Points calculation.”

The post Unusual Trading Activity Triggers 83% Dip in Polyhedra’s ZKJ Token Value appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.