Binance Alpha is now a serial play people for suckers scheme. The collapse of ZKJ and KOGE was actually a three-year conspiracy.

evaporated hundreds of millions in two hours, Binance Alpha became a “slaughterhouse”

On the evening of June 15, 2025, a shocking “death spiral” unfolded on the Binance Alpha platform. The two major tokens on the BSC chain, ZKJ and KOGE, plummeted over 80% in just two hours, with the total liquidation amount across the network reaching as high as $102 million. An investor lamented: “My $5,000 principal is left with only $500, not even enough to cover the airdrop points from Binance Alpha!” This crash was no coincidence; on-chain data revealed the truth of a three-year-long scheme of harvesting.

Three Major Addresses “Chain Crash”, Trading Tactics Comparable to Textbook

According to the in-depth tracking by on-chain analyst @ai_9684xtpa, three key addresses executed a textbook-level “liquidity squeeze” through precise coordination:

1. Address A (0x1A2…27599)

• Withdraw Liquidity

At 20:28, withdrew KOGE worth 3.76 million dollars and ZKJ worth 532 thousand dollars twice.

• Warehouse Switching Sale

After exchanging 45,470 KOGE for ZKJ, selling 1.57 million ZKJ in batches, cashing out 3.05 million USD, directly breaking through the narrow fluctuation range.

• Address B (0x078…8bdE7)

• Relay Smash

After withdrawing 2.07 million USD in KOGE and 1.38 million USD in ZKJ, 1 million ZKJ were sold, leading to a cliff-like drop in KOGE.

• Address C (0x6aD…e2EBb)

• Clear Out and Wrap Up

After receiving the 770,000 ZKJ transferred from address B, the market was quickly cleared out, completely destroying market confidence.

Harvesting Logic: First, smash the liquidity-weak KOGE to create panic, then implement a “double kill” by shorting through the ZKJ contract, and finally trigger a sell-off by exploiting the narrow range settings of LP (liquidity providers).

Signs of a Crash: Project Team’s “Death Notice”, Binance Alpha Mechanism as an Accomplice

• KOGE team preemptively “shifts blame”

In the 48 hours before the crash, the KOGE team 48 Club stated, “We have never promised not to sell the treasury holdings,” which was seen by the market as a blatant warning of a collapse.

• Binance Alpha Mechanism Vulnerability

The platform’s incentive system attracts a large number of users to engage in wash trading, but if the very narrow price range set by the LP (for example, the ZKJ/KOGE trading pair) is breached, liquidity instantly dries up, forming a “death spiral.”

• Unlock Pressure Catalyst

The ZKJ team of Polyhedra Network was scheduled to unlock 5% of the tokens (worth $30.3 million) on June 19, further intensifying the selling pressure.

Blood and Tears Lesson: How Retail Investors Can Avoid the “Shitcoin Trap”?

1. Beware of the “stability illusion”

The market capitalization of ZKJ has long been stable at 2 billion USD, with liquidity exceeding 20 million, appearing to be a “stablecoin-like” asset, but in reality, it is a means of harvesting and accumulating. 2. Stay away from the “Points Doubling” trap

The ZKJ-KOGE arbitrage strategy that is prevalent on Binance Alpha, due to its low wear and tear attracting a large number of users, has become a hotbed for large capital harvesting. 3. Understand the project’s underlying message

If the team suddenly emphasizes “no lock-up” and “risk is self-borne”, it is most likely a signal to sell. 4. Be cautious with high FDV (Fully Diluted Valuation) projects

Before the crash, ZKJ had a fully diluted valuation (FDV) of 2 billion USD, but the actual circulating market value was only 230 million, and the bubble burst instantly.

Where is Binance Alpha headed?

This incident exposed the fatal flaw in the Binance Alpha ecosystem: the points mechanism fosters false prosperity, with project parties colluding with large holders to harvest retail investors. Although the platform has launched a wealth management center and adjusted airdrop rules, it is still difficult to prevent the collapse of trust. Polyhedra Network has urgently stated that “the project’s fundamentals remain unaffected”, but its market value has shrunk by over 80%, and market recovery may require a long cycle.

The cryptocurrency circle is never short of wealth myths, but more often it is filled with bloody lessons. When everyone is chasing “Alpha returns,” don’t forget - the pie you see may be a trap that others have buried for three years.