The protocol’s founder blames the closing of the Starknet-Based ZKX Protocol on the DeFi sector, which is seeing minimal user engagement.
The ZKX Protocol, a social derivatives trading platform constructed on the Ethereum Layer-2 network Starknet, has been discontinued. The protocol’s founder has stated that there is no “economically viable path” for the protocol to continue.
Starknet-Based ZKX Protocol Closes
Eduard Jubany Tur, the proprietor of ZKX, stated in a post to X on July 31 that the protocol’s user engagement had been “minimal.” He also noted that only a few individuals had been mining the protocol’s rewards program.
The protocol’s daily revenue could only cover a “fraction” of their cloud server expenditures, and trading volumes had “significantly decreased,” he added.
Tur stated that ZKX had delisted all markets, closed all positions, and returned all funds to each user’s trading accounts. Users will have until the end of August to transfer their funds from their trading wallets to the primary self-custodial account of the protocol.
It occurred less than one month after ZKX protocol secured $7.6 million in funding from a strategic round on June 19, which included contributions from investors such as Flowdesk, GCR, and DeWhales.
Hashkey, Amber Group, Crypto.com, and StarkWare were previous investors in the protocol.
Tur further stated that the protocol could not be “sustainably supported” with the current value of its recently launched ZKE token.
“It is undeniable that the TGE did not meet expectations, and the subsequent losses have exacerbated our current circumstances.” “The token’s value has continued to decrease as major token holders exercise their cash right out,” he stated.
In addition, Tur accused the decentralized finance (DeFi) sector of experiencing “broader exhaustion.”
The price of the protocol’s native ZKX token has decreased by 37.8% in the past 24 hours and is currently trading at $0.02, according to CoinGecko data.
The ZKX token has experienced a 96.4% decline from its all-time peak of $0.62, achieved on June 20, one day after its launch.
