The crypto market has recently witnessed a striking price fluctuation. The ZKC Token, after being listed on major exchanges in mid-September, experienced a rollercoaster-like trend. The initial opening price reached a high of $1.78, but within just two weeks, it sharply fell to around $0.44, with a staggering decline of over 75%. Although such dramatic price changes are not uncommon in the crypto market, the underlying market logic merits our in-depth exploration.

The surface reason for this price fluctuation can be traced back to the token distribution strategy of ZKC. In its token economics design, community distribution occupies a considerable proportion. At the launch of the mainnet, a large number of tokens were released to the market through various airdrop activities. Just the airdrop for long-term holders on the Binance platform distributed 15 million ZKC, combined with the rewards obtained by early testnet participants, the market faced enormous selling pressure in the short term.

However, this is just the surface of the problem. The more fundamental reason lies in the market's lack of a mature value assessment system for infrastructure Tokens like ZKC. Unlike DeFi Tokens that have clear revenue sources, the value of ZKC is primarily reflected in network usage rights and governance rights. This value is difficult to quantify in the short term, resulting in a price discovery process filled with uncertainty.

From a technical analysis perspective, ZKC is currently showing significant signs of being oversold. The daily Relative Strength Index (RSI) has fallen to a very low level of 21, which is typically seen as a potential reversal signal in technical analysis. At the same time, the RSI on the 4-hour timeframe is also at a low of 32.7, suggesting a possible rebound in the short term.

This event highlights the challenges faced by the crypto market when assessing infrastructure projects. As the industry continues to evolve, investors and analysts need to establish more comprehensive and scientific value assessment models to better understand and predict the long-term value of such projects. Despite the severe price fluctuations in the short term, the long-term development prospects of the ZKC project are still worth the market's ongoing attention and evaluation.