Analyst: The continuous decline in Binance Alpha trading volume over the past few days may be the reason for tonight's KOGE and ZKJ "dump."
ChainCatcher message, on-chain analyst Ai Yi posted on platform X for further analysis of tonight's KOGE and ZKJ flash crash event:
- Why was KOGE smashed first before ZKJ?
The most important reason may be that ZKJ has a contract, allowing them to short on the exchange and simultaneously crash the price on-chain; secondly, from a liquidity perspective, ZKJ has better liquidity, which requires more funds to execute the crash.
- Why did the crash start at 8:30, while the performance of the two tokens on the K-line was delayed?
Both ZKJ and KOGE are known for their good liquidity and stable prices, so the LP range is extremely narrow. After a large amount of selling breaks through this range without enough funds to absorb the sell orders, a flash crash is inevitable. When LPs see the price drop, panic selling occurs, creating a vicious cycle that further drives down the price; as for those LPs who haven't run yet? They are stuck holding ZKJ and KOGE.
- Why choose to crash tonight?
Ai Yi speculates that the continuous decline in Alpha trading volume over the past few days may be the trigger. The exit of large LPs is also a "run fast" game, especially since there are fewer believers among the holders of ZKJ and KOGE; everyone is in it for the interest, so the collapse of the tower only requires the breaking of one supporting pillar.
