Golden Finance reports that amid the wild fluctuations in the cryptocurrency market, Tiancheng Xie, the co-founder of Polyhedra (ZKJ), released an important statement on social media platforms, saying that the team plans to repurchase more ZKJ tokens from the market. Tiancheng Xie said, “At present, our top priority is to thoroughly understand the current situation and must do our utmost to prevent similar financial attacks from happening again in the future.”
The proposal of this repurchase plan came shortly after the ZKJ token experienced a avalanche-like price plunge. On the evening of June 15th, on the Binance Alpha platform, the prices of the two tokens, ZKJ and KOGE, plummeted by over 80% within just two hours. The price of ZKJ plummeted sharply from $1.946 to $0.3767, triggering a total of $102 million in margin calls across the entire network. The margin call volume for ZKJ alone reached $94.336 million, leaving over 50,000 investors severely affected.
According to data from blockchain tracking firm Lookonchain, on the eve of the crash, six whale wallets sold 5.23 million ZKJ tokens, worth approximately 9.66 million US dollars. These whale wallets withdrew the liquidity of ZKJ and KOGE in advance, exchanged KOGE for ZKJ, and then sold ZKJ on a large scale, quickly depleting the liquidity of the ZKJ/KOGE trading pair, causing a sharp price drop and forcing the liquidation of leveraged long positions.
Not only that, the upcoming large-scale token unlocking has also exacerbated market panic. Originally scheduled for June 19th, Polyhedra Network was to unlock 15.53 million ZKJ tokens, accounting for 1.55% of the total supply. There was also a token unlocking plan worth approximately 32 million US dollars, accounting for 5.3%. This undoubtedly adds to the already fragile market confidence. Although Polyhedra Network once responded that the sharp drop in price was due to “abnormal on-chain trading of the ZKJ/KOGE trading pair in a short period of time”, and emphasized that the fundamentals of the project remained stable, the market capitalization has shrunk significantly by more than 80%.
Now, Polyhedra co-creation has announced the repurchase of ZKJ tokens, aiming to stabilize market confidence and restore investors’ trust in the project. The repurchase action is not only a direct response to the recent market crisis, but also conveys a positive signal to the market, demonstrating the team’s firm confidence in the future development of the project. As the subsequent repurchase plan is gradually implemented, the market may re-examine the prospects of ZKJ, and its price trend and market performance will also become the focus of attention in the cryptocurrency field.
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