The founder of the ZKX Protocol, a social derivatives trading platform based on the Ethereum Layer-2 network Starknet, has announced the closure of the platform, citing the lack of a commercially viable path for the protocol.
ZKX founder Eduard Jubany Tur stated that the protocol’s user involvement had been “minimal” in a post on July 31 on X, pointing out that only a small number of people had been mining the rewards program.
Trading volumes had “significantly decreased,” he continued, and the protocol’s daily revenue was only enough to pay for a “fraction” of their cloud server costs.
According to Tur, ZKX terminated all positions, delisted all markets, and restored all money to each user’s trading account. Funds from trade wallets must be transferred to the protocol’s primary self-custodial account by the end of August.
It occurred barely one month after the ZKX protocol, with contributions from investors like Flowdesk, GCR, and DeWhales, raised $7.6 million in funding on June 19 through a strategic round. Prior backers of the protocol included StarkWare, Amber Group, Crypto[.]com, Hashkey, and Amber Group.
Tur went on to say that the value of the recently introduced ZKE token made it impossible to “sustainably support” the protocol. He stated:
“There’s no denying the TGE didn’t meet expectations, and the resulting losses have contributed to our current situation. As major token holders exercise their right to cash out, the token’s value has continued to decline,”
Tur also pointed the finger at the decentralized finance (DeFi) industry’s “broader exhaustion.” According to CoinGecko data, the native ZKX token of the protocol had a 37.8% decrease in price the previous day and is currently trading for $0.02.
On July 30, Wemix[.]fi announced that the company would be closing its loan and borrowing operations. Following Jang’s resignation, Wemix saw a fork that led to the development of the Wemix Pay service, the release of a second game token, and a decrease in the overall amount of Wemix.
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