What is ZKJ? Project Introduction and Technical Background

Image:https://polyhedra.network/

ZKJ is the native Token launched by Polyhedra Network, belonging to the promising “cross-chain zero-knowledge proof” track in the Web3 space. The project focuses on zkBridge, zkDID, and zkLightClient, aiming to solve core pain points such as inter-chain interoperability, identity verification, and lightweight data validation using zero-knowledge technology.

Polyhedra Network has received support from several top institutions, including Binance Labs, Polychain, Animoca, and others. Its core competitiveness lies in promoting on-chain privacy and cross-chain asset circulation through high-performance zk technology.

ZKJ, as its ecological Token, is used on one hand to pay network transaction fees, and on the other hand as collateral or rewards in the cross-chain asset verification process.

The token economic model of ZKJ and its early performance

Figure:https://www.gate.com/trade/ZKJ_USDT

ZKJ started to become active at the end of 2024, initially launching through the Binance Alpha platform, which attracted a lot of attention from Alpha users. Due to its high liquidity and extremely low slippage, ZKJ is often used to participate in credit points and Alpha trading tasks.

In terms of Token economy, ZKJ’s initial circulation is relatively small, with a total issuance of about 1 billion pieces. Before a large-scale unlocking, the market price had long maintained between 1.8 - 2 dollars, with FDV stabilizing around 2 billion dollars, leading many to mistakenly believe that its risk is extremely low, even calling it a “stablecoin.”

Binance Alpha Points Mechanism and Trading Strategy

Since the launch of Binance Alpha, users can earn Alpha points by completing contract trading, spot trading, liquidity provision, and other methods, thereby obtaining airdrop slots for future new projects.

Among them, ZKJ and another project Token KOGE were used by a large number of users for wash trading. Due to their low slippage and small fluctuations, they were once praised by the community as the “optimal yield farming combination.” However, it is precisely this wash trading strategy that has led to an abnormally high trading volume for both during the Alpha event, while concealing the issues of highly concentrated liquidity and underestimated risks.

June 15 evening: The beginning and end of the big dump of ZKJ and KOGE

On June 15, 2025, at 20:30, ZKJ experienced a big dump from $1.946 to $0.3767 within a short period, with a fall of up to 80.64%. Meanwhile, KOGE also flash crashed from $61 to $8.46, shocking the entire community.

Coinglass data shows that the total liquidation amount exceeded 100 million dollars within two hours that night, with ZKJ contributing over 94.33 million dollars in long liquidations, marking another “black swan event” in the history of the crypto market.

The trading path revealed by on-chain analysis

On-chain data researchers pointed out that multiple key addresses precisely withdrew liquidity and made large sell-offs before the big dump.

• Address 0x1A2 first withdrew millions of dollars in liquidity, and then completed the selling pressure worth millions of dollars through the ZKJ-KOGE exchange channel.
• The other two addresses operate in coordination, striking the prices of the two coins through precise timing and order.
• The 48Club behind KOGE clearly stated that its Token is not locked and there is no commitment not to sell, causing panic in the market.

This collapse has formed a clear “negative spiral” mechanism: liquidity is withdrawn → users panic sell → LP withdraws from the pool → flash crash.

Investment Lessons and Future Prospects of ZKJ

This event serves as a wake-up call for users participating in the Alpha ecosystem. Volume arbitrage is not risk-free; rather, it can become a “liquidity runner” for big whales unloading their assets. The technical strength of the ZKJ project itself has not been directly questioned, but its Token model’s vulnerability under extreme market conditions has been fully exposed. Especially with the upcoming unlocking event of 15.53 million ZKJ on June 19, the pessimistic market sentiment has been further exacerbated.

For ordinary investors, understanding liquidity risk, being vigilant against artificial price manipulation, and avoiding blind participation in Alpha point competitions are important principles for future participation in DeFi or Web3 projects.