What happened?
On June 15, ZKJ token holders witnessed a drastic collapse in value as $500 million vanished in minutes due to a coordinated liquidity attack. Polyhedra launched the Phoenix Revival Program to reward those who held through the 90% crash, offering early access to ecosystem airdrops and zero-knowledge infrastructure rewards. Nevertheless, community backlash erupted as investors accused the leadership of betrayal for abandoning promised buybacks and relying on vague future perks.
Who does this affect?
The Phoenix Revival Program specifically targets ZKJ token holders who maintained their positions during the crash, staking tokens on-chain via Ethereum or Binance Smart Chain. Stakeholders with high staking power as of June 15 at 13:00 UTC are eligible for rewards, recognizing their loyalty and long-term involvement. The broader community of investors, however, remains affected by the absence of immediate financial recovery measures, feeling abandoned by the project’s leadership.
Why does this matter?
The market impact of this situation is significant, as ZKJ’s value has plummeted over 90%, causing severe financial concerns among investors. The failure of initial recovery measures, such as the injection of stablecoins into DEX pools, has led to increasing skepticism regarding the project’s future. This event underscores the fragility of cryptocurrency markets and highlights the potential repercussions of liquidity attacks, affecting investor confidence and market stability.