On June 14th, the cryptocurrency market observed unusual fluctuations of two Tokens previously considered stable: ZKJ and KOGE. Both cryptocurrencies simultaneously dropped 3% in a short period. The root cause originated from wallet address 0x364…f18e9 - which was considered the key factor driving the price decline.
Specifically, at 21:49, this wallet withdrew 1.29 million ZKJ and 8,667 KOGE from the liquidation pool, then proceeded to sell these assets. In total, the wallet owner sold ZKJ worth $3.1 million at 21:21 and 22:05; simultaneously selling KOGE worth $550,000 at 21:20.
This development caused ZKJ's trading volume to explode, reaching a peak of $12.73 million at 21:21. Immediately after, ZKJ's price free-fell for 15 consecutive minutes - a clear sign of panic selling or liquidation by LPs. The reason was ZKJ's narrow liquidation margin, making its price extremely sensitive to large-scale transactions.
By 22:05, the same scenario repeated, with a cascading effect causing KOGE to also become unstable, despite limited selling pressure. The close connection between these two Tokens demonstrated how a single large transaction can disrupt the entire liquidation ecosystem, revealing the interconnectedness and risks of decentralized pools in the cryptocurrency market.
