The ZKX Protocol, a social derivatives trading platform built on the Ethereum Layer-2 network Starknet, has announced its closure due to a lack of user engagement and declining revenues. In a July 31 post on X, ZKX founder Eduard Jubany Tur stated that there was no “economically viable path” forward for the protocol.<\/p>\n\n\n\n
Tur explained that the platform experienced minimal user activity, with only a few individuals participating in its rewards program. He noted that trading volumes had significantly decreased, and the daily revenue generated was insufficient to cover basic operating expenses, such as cloud server costs. As a result, ZKX decided to delist all markets, close all positions, and return funds to users. Users have until the end of August to transfer their funds from their trading wallets to the protocol\u2019s main self-custodial account.<\/p>\n\n\n\n
The shutdown comes just a month after ZKX raised $7.6 million in a strategic funding round on June 19. The round saw investments from Flowdesk, GCR, and DeWhales, with previous backers including Hashkey, Amber Group, Crypto.com, and StarkWare. Despite this financial support, the protocol struggled to maintain its operations, primarily due to the underperformance of its native ZKE token.<\/p>\n\n\n\n
Tur acknowledged that the Token Generation Event (TGE) for the ZKE token did not meet expectations, resulting in significant losses. As major token holders opted to cash out, the token’s value continued to plummet, exacerbating the protocol’s financial difficulties. The ZKE token’s price dropped 37.8% in the last 24 hours, trading at $0.02, a 96.4% decline from its all-time high of $0.62 on June 20, according to CoinGecko data.<\/p>\n\n\n\n
Tur also attributed the platform’s downfall to a “broader exhaustion” in the decentralized finance (DeFi) sector. The DeFi market has faced various challenges, including regulatory scrutiny, security issues, and a general decline in market enthusiasm, which have collectively impacted user engagement and investment.<\/p>\n","protected":false},"excerpt":{"rendered":"
The ZKX Protocol, a social derivatives trading platform built on the Ethereum Layer-2 network Starknet, has announced its closure due to a lack of user engagement and declining revenues. In a July 31 post on X, ZKX founder Eduard Jubany Tur stated that there was no “economically viable path” forward for the protocol. Reasons for […]<\/p>\n","protected":false},"author":18,"featured_media":10742,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[43],"tags":[],"class_list":{"0":"post-10741","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-general-news"},"acf":[],"yoast_head":"\n