ZKJ Token of Polyhedra Network dropped nearly 60% in less than an hour on 15/06/2025, losing over 360 million USD in market capitalization.
KOGE, the Governance Token of 48 Club DAO, also dropped 50% in the same period, losing over 100 million USD in market capitalization.
ZKJ Faces Severe Liquidation Management
The strong sell-off began when the KOGE/USDT liquidity pool was depleted, preventing LPs from exiting. Panic selling occurred as investors began converting KOGE to ZKJ.
According to initial reports from the community, the KOGE team did not add USDT to their liquidity pool. This triggered what some users call a "rug from both sides".
ZKJ price dropped sharply. Source: CoinGeckoWith no USDT in the KOGE pool, investors quickly moved KOGE to the ZKJ pool, which was still actively protected by the team.
However, the rapid inflow quickly overloaded the ZKJ/USDT pair, causing a domino effect that sharply reduced ZKJ's price and eroded investor confidence.
Members of 48 Club DAO, the group behind KOGE, expressed outrage about this incident, accusing the team of poor and irresponsible management.
Social media was flooded with posts demanding accountability from both projects. The phrase "rug from both sides" became a trend in the cryptocurrency community.
This incident severely damaged trust in both ecosystems, causing users to question the sustainability of their liquidity strategies.
Beyond liquidity concerns, market structure also added pressure. A 5.3% ZKJ Token Lockup worth 32 million USD is expected to occur at the end of this week.
With Binance Alpha volume dropping, analysts warn that bots and whales are dominating the Order Book, further increasing volatility for both tokens.
ZKJ and KOGE: Tightly Linked Ecosystem
This collapse highlights the close connection between ZKJ and KOGE. Both tokens are often 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 DeFi on BNB Chain.
Recent farming and arbitrage activities have increased trading volume between the two tokens, making them vulnerable to liquidity shocks.
