Polyhedra co-founder reveals buyback strategy to address recent financial attacks

Polyhedra Network co-founder Tiancheng Xie said the team will conduct further buybacks and is currently assessing the situation to address its previous financial attacks. Earlier, the firm released a preliminary report on the ZKJ token crash, attributing the drop to a coordinated liquidity attack on PancakeSwap and large-scale token sell-offs. Polyhedra’s buyback strategy aims to purchase its tokens from the open market to help stabilize ZKJ’s price and reduce the impact of the attack by decreasing the circulating supply and increasing demand. At the time of publication, ZKJ is trading at $0.4015, an 80% drop in the last 7 days. Xie said the company will buy back more while it figures out its current situation to prevent further attacks. Polyhedra’s June 15 report noted substantial token transfers by Wintermute coinciding with extreme market volatility and a coordinated withdrawal of liquidity from PancakeSwap’s ZKJ/KOGE pool. The firm noted that several key addresses executed a sequence of large liquidity withdrawals from the PancakeSwap pool, which were followed by aggressive ZKJ sell-offs. Polyhedra’s ZKJ token plummets after abnormal transactions We will buyback more. Now we need to figure out current situation and we need to prevent future financial attack. https://t.co/AuYMA65aj6 — Tiancheng Xie (@Tiancheng_Xie) June 16, 2025 According to on-chain data, the ZKJ token fell 60% from $1.92 to $0.76 in a 90-minute window on June 15 at 2:32 am UTC. Later that Sunday, at about 9:25 pm UTC, the price plummeted from roughly $0.77 to 32 cents in a matter of hours, an 83% price crash in just 24 hours. The price drop wiped out roughly $500 million in market value at the time. The following day, Polyhedra posted an initial report examining the potential causes of the price crash. The company believes immediate factors, including token deposits from a coordinated on-chain liquidity attack, substantial deposits by Wintermute into centralized exchanges, and cascading liquidations on the CEXs caused the crash. “I know everyone’s criticizing us right now, but we’ve faced this before. We turned criticism into praise last time, and we can do it again, even better than before. Our tech is rock solid. We won’t back down from shady financial attacks.” – Tiancheng Xie , Co-founder of Polyhedra. The company said several wallets had coordinated a liquidity attack with an egregious, malicious attempt, with withdrawals targeting a ZKJ/KOGE liquidity pool on PancakeSwap, followed by aggressive ZKJ sell-offs. According to the firm, the affected trading pairs had fragile and imbalanced liquidity, leading the selling pressure to extend into ZKJ’s primary USDT pool. The firm revealed that one Wintermute address deposited more than 3.39 million ZKJ tokens to CEXs in the hour surrounding the crash. Another wallet withdrew over $4.3M in liquidity and dumped around 1.57 ZKJ. According to the firm, at least five other wallets followed similar patterns within minutes. On-chain data from Bybit showed that leveraged long positions were closed in just two hours, with multiple trades over $1M liquidated around 12:57 UTC, causing the price to drop faster. Polyhedra is the developer behind the zero-knowledge interoperability protocol zkBridge, which is, according to the firm, “significantly faster” than existing proofs, both in proof generation and proof verification. The firm’s investigation found that token transfers by Wintermute coincided with extreme market volatility and a coordinated withdrawal of liquidity from PancakeSwap’s ZKJ/KOGE pool. Binance refutes claims of involvement in the crash ZKJ, which launched last March, hit an all-time high of around $3.40 before dipping to a low near $1.10, where it mostly remained range-bound before beginning a slow climb upwards in November. The digital asset is a governance token for the BNB48 Club in the Binance ecosystem. Both ZKJ and KOGE were traded to earn Alpha Points as part of Binance’s scoring system to evaluate and reward user engagement within the Binance Alpha ecosystem and Binance Wallet. A Binance Square account that appeared connected to a KOGE team member suggested that no one involved with the group had dumped the token and contributed to the price crash. Binance acknowledged that it will adjust the calculation rules of its Alpha Points token rewards program from today onward to ensure market fairness and stability and to reduce systemic risks of concentration. The crypto firm also revealed that starting from 00:00 UTC on June 17, the trading volume of trading pairs between Alpha tokens will no longer count towards Alpha Points calculation. Polyhedra argued that it tried to help support the price drop by adding $30 million in liquidity during the crash, but most of it was converted to ZKJ as the price fell. The price drop also came just days before 15.53 million ZKJ tokens were set to unlock on June 19. KEY Difference Wire helps crypto brands break through and dominate headlines fast

Source: Cryptopolitan