The ZKX protocol, a social trading platform built on Starknet, has officially ceased operations, resulting in a significant drop in the value of its token.
ZKX Protocol Cessation
Eduard Jubany Tur, the founder of ZKX, announced the shutdown in a statement on X. Tur expressed disappointment in the closure, attributing it to the challenges faced in establishing a viable financial direction despite considerable endeavors. The decision to end operations was impacted by issues such as limited user participation and decreasing trading activities.
The company has taken steps to discontinue all trading markets, close existing positions, and refund users' funds. Users now have the option to transfer their assets from ZKX's self-custodial wallets on Starknet back to the primary layer using the available bridge.
Tur mentioned that the token's value had reached unsustainable levels, further worsening the financial strain on the platform.
This development led to a sharp 52% decline in the value of the ZKX token within a single day.
Withdrawal Guidelines for Users
ZKX has initiated a transition phase, urging users to withdraw their assets before August 31st. Users are encouraged to move their funds from ZKX's self-custodial wallets on Starknet to the primary layer via the provided bridge during this period. Additionally, ZKX has highlighted the importance of collecting any pending STRK rewards before the deadline.
Funding Situation and Future Outlook
In June, ZKX successfully secured a total funding of $7.6 million, with contributions from Flowdesk, GCR, and DeWhales. This funding aimed to expedite the development of the ZKX Protocol, incorporating features such as social copy trade pools and cross-chain compatibility. Despite these endeavors, the platform struggled with financial sustainability.
