Bane has seen through it all 🫡
He agrees with the entire logic line:
1. Earlier this year, after the high OI tokens of pnut om crashed and were liquidated, those with intent only needed to check and would find the hidden high OI in the $zkj market 🐘;
2. Observing the $zkj K-line shows that before it was listed on bn alpha, it existed with extremely low volatility and maintained a slightly high positive fee rate for a long time;
3. Many people in the market are talking about how koge and $zkj are colluding to cut retail investors, forming large pools to lure them into traps, but isn't that thinking too complicated? Do retail investors really understand it?? The entire derivation process is too long, requiring too much coordination and too many mixed personnel;
4. Soon, $zkj will enter the VC unlocking period, and it is likely that a certain market maker's token loan is about to expire or they are using the tokens as collateral to re-mortgage, needing to clean up this mess before the expiration.
I'm too lazy to curse, so I'll just state the logic:
1. @PolyhedraZK The open interest (oi) is clearly controlled by a single entity, which anyone can see. The candlestick chart is not what it should be for normal trading.
2. Blaming the large Koge holders for unilaterally dumping is unfounded. First of all, the open interest (oi) for ZKJ did not meaningfully increase before the huge drop, unless you say that this external large holder knew about this day six months in advance and gradually opened short positions.
3. Given the first point, if it really is Koge unilaterally dumping, this large holder of ZKJ's open interest should do everything possible to maintain the contract price; they cannot let their huge exposure be quickly liquidated.
Contract liquidation looks at the actual price, not the marked price; the on-chain price has no impact on them. The correct approach at this time is to unilaterally close shorts/open longs to maintain the contract price while reducing spot liquidity to quickly bring the spot price back to a certain anchored position.
The third point can be reflected in the market where there will be a significant price difference between the contracts and the on-chain spot, with many similar examples. For instance, when the TRB contract was nearly $3, the spot was only a little over $1.
Even if this large holder of ZKJ is closing shorts, I believe that the volume of this open interest can only be countered by a handful of institutions that can short at the external market price, and the counterparty risk is huge.
4. However, tonight there is none of that; the contracts are dropping very smoothly, almost completely in sync with the spot. Looking at the flow of contracts in the 30-second time frame, there is hardly any sign of resistance or self-protection. This means that the owner of this over $100 million open interest in ZKJ has made no resistance and is allowing others to trample over it, and the one being trampled is a coin they themselves have high control over.
5. In summary, ZKJ is likely the one dumping, and it is highly probable that this is a conspiracy.
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