Analyst: Consecutive Days of Declining Alpha Trading Volume on a Certain Exchange May Trigger Tonight’s KOGE and ZKJ Sell-off

On-chain data analyst Ai Yi (@ai_9684xtpa) published a post providing further analysis of tonight’s KOGE and ZKJ flash crash events: 1. Why dump KOGE before ZKJ? The main reason may be that ZKJ has contracts, so shorting on exchanges can be synchronized with dumping on-chain; in addition, from a liquidity perspective, ZKJ’s liquidity is relatively better, so crashing its price would require more capital. 2. Why did the dumping start at 8:30, but the K-line performance of both tokens was delayed? Both ZKJ and KOGE are known for good liquidity and stable prices, so their LP ranges are very narrow. When a large amount is dumped through this range and there isn’t enough capital to absorb the sell orders, a flash crash becomes inevitable. As LPs see the price drop, panic withdrawals occur, creating a vicious cycle that further drives the price down; as for those LPs who haven’t exited yet, they’re now stuck holding ZKJ and KOGE. 3. Why choose to dump tonight? Ai Yi speculates that the continuous decline in Alpha trading volume over several days may have been a trigger. The exit of large LPs is also a “race to the exit,” especially since there are few true believers among ZKJ and KOGE holders—most are just chasing yields. In this case, the collapse of the whole structure only needs one supporting pillar to break.