Catenaa, Saturday, June 21, 2025- Polyhedra Network co-founder Tiancheng Xie on Monday said the company would initiate more token buybacks after its ZKJ token plunged nearly 85% in hours due to what it described as a “coordinated financial attack.”
The ZKJ token, which had traded near $2, fell sharply to around 30 cents on Sunday.
In a preliminary report, Polyhedra attributed the crash to a “coordinated onchain liquidity attack,” combined with large token dumps on PancakeSwap, significant deposits to centralized exchanges by market maker Wintermute, and cascading liquidations.
Xie acknowledged criticism directed at the project but insisted the network’s core technology remained intact. “Our tech is rock solid. We won’t back down from shady financial attacks,” he posted to X, formerly Twitter. “We will buy back more.”
ZKJ, launched in March, once touched a high of $3.40 before stabilizing near $1.10 for several months. It began regaining ground late last year before Sunday’s collapse. The token crash comes just over a year after Polyhedra achieved a $1 billion valuation, following a $20 million strategic funding round led by Polychain Capital, with participation from Animoca Brands and Hashkey Capital.
Polyhedra is the developer of zkBridge, a zero-knowledge interoperability protocol it claims is significantly faster in both proof generation and verification than existing solutions.
The firm has not yet disclosed how many ZKJ tokens will be repurchased or over what timeline.
