Poly Hedera Network plummets by 83.51% compared to the previous day

Poly Hedera Network (ZKJ) experienced an intraday crash.

As of 7:36 AM (KST) on the 16th, according to CoinMarketCap, Poly Hedera Network is down 83.51% from the previous day, trading at $0.32.

This sharp drop has sparked controversy within the community.

On the same day, influencer Star Platinum pointed to the Binance Alpha system as the cause of the crisis for both Poly Hedera Network and 48ClubToken (KOGE), which also crashed alongside.

He stated, "For weeks, Poly Hedera Network has been recognized as a necessary token for acquiring Binance Alpha Points, and it was even nicknamed the ‘Binance Stablecoin’ in some circles. However, this was merely an illusion."

It started with 48ClubToken. As Tether (USDT) was depleted from the 48ClubToken pool, liquidity dropped rapidly, and traders began swapping 48ClubToken for Poly Hedera Network. According to Star Platinum, "this triggered a wave of panic selling and marked the beginning of the crash for both Poly Hedera Network and 48Token."

The situation worsened when 15.5 million Poly Hedera Network tokens were unlocked while both tokens were falling in the market.

Star Platinum noted, "The timing of the unlock was the worst," but added, "the fundamental cause of this crisis was traders creating fake demand to acquire Alpha Points."

Meanwhile, Poly Hedera Network responded to the situation, stating, "Poly Hedera Network’s solid foundation remains strong thanks to technological and community support. Today’s price drop was caused by abnormal on-chain transactions." The team added, "We are closely monitoring the situation and will strive to provide further updates."