ZKX derivatives exchange ceased operations and ZKX tokens plummeted 50%

The Starknet ecosystem’s ZKX derivatives trading protocol is pioneering the Ethereum L2 network and has received over $10 million in funding from well-known investors. However, just a month after the launch of its native token, things took a shocking turn. ZKX announced on July 30 that it would suddenly cease operations due to financial unsustainability. The market reacted quickly, with the ZKX price plummeting 50% in one day, causing a devastating blow to the project and its stakeholders.

•  ZKX announces closure
•  ZKX just issued its token in June
•  ZKX plunges 50% in 24 hours

 ZKX announces closure

ZKX is a derivatives trading protocol on the Ethereum L2 network Starknet. It was established in 2021 and focuses on PVP duels and perpetual contracts. On July 30, the trading platform suddenly announced that it would cease operations. Currently, ZKX has delisted all markets, closed all positions, and returned all funds to each user’s trading account. According to its founder Eduard Jubany Tur, the decision to cease operations stemmed from a variety of factors, including low user participation and limited participation in the protocol’s STRK and ZKX reward mining programs. As a result, ZKX’s transaction volume has dropped significantly, resulting in the protocol’s daily revenue being only enough to cover a fraction of the cost of cloud servers, let alone supporting salaries and other basic operating costs. Furthermore, Eduard Jubany Tur emphasized that the current token value is not enough to sustain the operation of the protocol. The outcome of the Token Generation Event (TGE) fell short of expectations, and as major holders began to cash out, the value of the token continued to decline, highlighting a severe lack of demand. Jubany Tur attributed this to the broader decline in the DeFi space, saying: “We thoroughly evaluated the feasibility of cross-chain scalability, but ultimately realized that a large portion of our code base would need to be rewritten in 2019 , testing and re-examination.”

 ZKX just issued its token in June

After its establishment in 2021, the ZKX exchange has grown steadily. In July 2022 and June this year, the platform successfully completed two rounds of financing, raising US$4.5 million and US$7.6 million respectively from well-known investors such as Flowdesk, GCR, DeWhales, Hashkey, Amber Group, Crypto.com and StarkWare. . The investment in June 2024 highlights the strong confidence of investment institutions in the potential of ZKX. After the financing, ZKX made a landmark move on June 19 this year, officially launching the token $ZKX as well as airdrop and staking functions, providing users with the opportunity to share platform income by staking ZKX. However, the results of the token launch were far less than expected.

 ZKX plunges 50% in 24 hours

As ZKX announced it would cease operations, the price of its token ZKX plummeted 50%, plummeting to $0.01292 in a single day. Data shows that the token has fallen sharply since its launch high of $0.6262 on June 19, and is currently down 98% from its peak. Finally, we would like to remind all users who are interested in ZKX that they need to transfer their funds from their trading account to their own self-custody account before the end of August. Otherwise, your funds may be affected.

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