- Binance revises the rules of Alpha Points due to volatility caused by the crash of ZKJ and KOGE.
- Large redemptions and unlocking of the tokens triggerred a sharp decline in the tokens’ price.
- Polyhedra and 48 Club respond to crash, renew commitment to projects.
Binance, a leading crypto exchange in the world, has revealed that it has altered its Alpha Points to ensure the activity is fine-tuned following abnormal price fluctuation in two tokens, ZKJ and KOGE. The exchange discovered that the withdrawals of liquidity by big holders and a succession of liquidations led to extreme price fluctuations.
Binance is Changing the System of Alpha Points following the Turmoil of ZKJ And KOGE
In order to avoid such problems and provide balanced trading environment, Binance will modify the calculation of Alpha Points after June 17, 2025. Alpha Points are an incentive program in Binance that awards its users that trade specific tokens.
In the new rules, trades will no longer earn such points between these Alpha-listed tokens. The reform will minimize the risks associated with concentrated trading activity that may result in stabilizing the market abruptly.
According to the exchange, the change is to serve as an action to protect the users and encourage the health of the long-term markets. Such an update is part of the process followed by Binance according to market dynamics.
The company promised that the modification is aimed at establishing more stable trading conditions. The change in Alpha Points will come into effect at 00:00 UTC on June 17. The adjustment can impact certain trading strategies, but Binance sees it as beneficial to the community in the long run, as it lowers the risks of exposure to volatility.
Polyhedra Network’s ZKJ Token Crashes More Than 80% After Liquidity Shock
Earlier today, Polyhedra Network’s ZKJ token suffered a dramatic collapse, losing over 80% of its value in just hours. The crash started when three major wallet holders, identified by on-chain analysts, withdrew and sold large amounts of ZKJ and KOGE tokens.
One wallet moved $3.7 million worth of KOGE and $532,000 in ZKJ, while another sold $1.4 million in ZKJ. These moves came just as 15.53 million new ZKJ tokens were released into circulation through a scheduled token unlock, flooding the market with extra supply.
The price of ZKJ fell to a low of $0.20 from a high of 1.90. The KOGE token, which has a close connection with ZKJ, also fell by the same margin ($62 to $24).
Source: CoinMarketCap
ZKJ and KOGE Teams React to Crash, defends Projects
The Polyhedra Network, which created ZKJ, admitted that the crash was the result of some kind of abnormal on-chain dealings, but said that this does not reflect weak technology. The principles of Polyhedra are sound, the team tweeted adding that it would further look into it.
The statement by 48 Club, the organization behind KOGE was sharp. “Oh yes, full dilution of KOGE was present since the very first day of its existence,” they tweeted. They further said, “Neither did we ever say we would not sell.”
