KOGE Token: Analysis of the Reasons for the Big Dump and Investment Guide

The KOGE Token, as an important part of the Polyhedra Network ecosystem, has recently become a hot topic in the cryptocurrency market due to its drastic price fluctuations. In mid-June 2025, the price of KOGE fell by over 80% in just 24 hours, causing a stir in the market alongside the ZKJ Token. This article will delve into the background of the KOGE Token, the reasons for its big dump, its market impact, and investment strategies, providing clear guidance for investors to maintain rational decision-making in the highly volatile cryptocurrency market.

KOGE Token BackgroundKOGE Token Background

KOGE is the ecological Token of Polyhedra Network, which, along with ZKJ, supports decentralized governance and cross-chain interoperability features. Polyhedra Network achieves efficient cross-chain data transmission through zero-knowledge proof (ZKP) technology, relying on the zkBridge protocol. KOGE is used to incentivize liquidity providers, pay cross-chain fees, and for community governance. In 2024, KOGE attracted a large amount of funds due to the high annual percentage yield (APY) provided by trading on the Alpha platform, becoming a popular asset for liquidity mining. However, the big dump from June 14 to 15, 2025, caused a significant price fall, drawing widespread attention.

Reasons for the big dump of KOGE Token

The KOGE price crash was triggered by multiple factors. The liquidity pool design for the KOGE/USDT and ZKJ/KOGE trading pairs has a narrow range, making it difficult to withstand large sell-offs. On-chain data shows that on June 15, a large holder withdrew approximately $3.76 million of KOGE liquidity and concentrated their sell-off, directly collapsing the price. The trading platform Alpha adjusted its incentive mechanism from a high APY uniform airdrop to a “performance-based claim” and “first-come, first-served” model, weakening the holding motivation of large holders, leading to a rapid decline in trading volume from the peak of $2.04 billion on June 8. The community questioned whether the project party was creating a false price appearance by unilaterally adding liquidity, and on-chain analysis revealed that related addresses sold KOGE before the flash crash, exacerbating panic. High-leverage long positions in the contract market experienced mass liquidation as prices fell, further amplifying the decline.

Market Impact Analysis

The KOGE flash crash has caused a significant impact on the market. Investor confidence has been shaken, and liquidity providers on the trading platform Alpha have suffered massive losses. Some users on platform X jokingly referred to KOGE as a “harvester,” reflecting the community’s low morale. The incident exposed the systemic risks of high-yield liquidity pools, prompting investors to reassess the token’s fundamentals and pool design. Similar incidents may attract the attention of regulators towards incentive platforms and high-leverage trading, increasing compliance pressure.

Investment strategy recommendations

To avoid the risk of a big dump similar to KOGE, investors should conduct in-depth analysis of the token use cases, team background, and on-chain data, avoiding chasing high-yield speculative projects. At the same time, assess the liquidity pool depth and exit mechanisms, and be wary of the traps behind high APY. Diversifying investments and setting stop-loss points can help control risks, using tools like Dune Analytics and Etherscan to track large transfers, and combining discussions on platform X to capture market signals. KOGE will unlock 1.5% of the tokens on June 18, and investors need to prepare in advance to respond to selling pressure.

Despite the significant fall in KOGE prices, the zkBridge protocol of Polyhedra Network still has a technical advantage in the field of Web3 interoperability, and KOGE has potential value as an incentive Token. In the short term, challenges such as Token unlocking, trust crisis, and decreased market activity need to be addressed. The project team must enhance transparency, optimize the Token economic model, and expand ecological applications to rebuild confidence. Investors should not blindly buy the dip at the moment, and should wait for the market to stabilize and for the project team to release positive signals before reassessing entry opportunities.