Polyhedra Co-Founder Promises Token Buyback After ZKJ Crash

Polyhedra co-founder Tiancheng Xie said the company will continue to buy back ZKJ tokens after the token price plummeted due to a deliberate attack.

"We will continue to buy back. For now, we need to assess the situation and prevent future financial attacks," Xie wrote on X.

Last Sunday, June 15/205, the ZKJ price plunged from around $2 to $0.3 in just a few hours. The next day, Polyhedra announced an initial report, stating that the incident was due to a series of coordinated actions such as on-chain liquidation, Wintermute depositing large amounts of tokens on CEX, and multiple on-chain liquidation orders.

Xie also acknowledged being criticized: "I know people are criticizing us, but we have overcome and turned criticism into praise before. This time we will do better. Our technology remains solid, and we will not back down from obscure financial attacks."

ZKJ started trading in March, once reached a peak near $3.4 and then dropped significantly to around $1.1, before gradually recovering from November.

Polyhedra is the development team behind zkBridge – a protocol for interaction between blockchains using zero-knowledge proof, which is considered significantly faster than current solutions.

This price collapse is a major shock for the project that once reached a valuation of $1 billion after a $20 million funding round in March/2024 led by Polychain Capital, with participation from Animoca Brands and Hashkey Capital.