ZKJ Flash Crash Attributed to $40M Profit Withdrawal from Contract OI
Share
The recent flash crash of ZKJ contracts, which saw positions plummet by 85% from $200 million to $20 million, is likely due to a significant profit withdrawal, according to analysis by a user on platform X. The contract trading volume surpassed that of Pepe, while the on-chain spot market remains over $3 million, insufficient for substantial profits. The analysis suggests that the profit from the contract positions, calculated as 20% of the open interest change, amounts to approximately $40 million. This profit exit strategy is considered optimal for market makers or project parties.
KOGE project owner @48ClubIan acknowledged the analysis, noting that contract analysis is a weak point for their team and that KOGE has not launched any contracts. The KOGE token's decline is further discussed in the article "KOGE and ZKJ were closed overnight, and Binance Alpha was forced to grow."
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.