On June 15, Polyhedra Network’s ZKJ token crashed nearly 60% within an hour, erasing over $360 million in market value. During the same period, 48 Club DAO’s governance token, KOGE, fell 50%, losing more than $100 million in market capitalization.
The decline stemmed from a liquidity shortage in the KOGE/USDT pool, which ran dry and left liquidity providers unable to exit. This triggered panic selling as investors rushed to swap KOGE for ZKJ.
Community reports indicate the KOGE team neglected to add USDT to their liquidity pool, prompting accusations of a “rug pull from both sides.” With no USDT available in the KOGE pool, holders offloaded KOGE into the still-liquid ZKJ pool, overwhelming the ZKJ/USDT pair. This liquidity strain caused ZKJ prices to crash, significantly undermining investor confidence.
Members of 48 Club DAO criticized the team for negligence and mismanagement. Social media was flooded with calls for accountability, with the phrase “rugged from both sides” trending within crypto communities.
The incident eroded trust in both ecosystems, raising concerns about the viability of their liquidity management strategies. Adding to the pressure, a scheduled token unlock of 5.3% of ZKJ, valued at $32 million, is set for later this week.
Market analysts noted that with Binance Alpha’s trading volume declining, bots and whales dominate order books, increasing volatility for both tokens.
ZKJ and KOGE are closely linked, frequently paired in liquidity pools and used in farming strategies. ZKJ supports zkBridge and zero-knowledge proof infrastructure, while KOGE serves as a governance token for 48 Club, a BNB Chain DeFi project. Prior coordinated farming and arbitrage activities had boosted trading volumes but also heightened vulnerability to liquidity disruptions.
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