News
ZKX Crashes 50% as Protocol Cuts Services Due to Low User Demand
ZKX Protocol, the first perpetual futures exchange on Starknet, has ceased operations due to lack of user engagement.
ZKX Protocol (ZKX), a decentralized perpetual futures trading platform based on Star Network (SQUEEZE), is scaling down its operations as it faces financial difficulties due to minimal user engagement.
Important statement 07.30.24
It is with great regret that we must announce the termination of the ZKX protocol. Despite our best efforts, we have not been able to find an economically sustainable path for the protocol.
(1) All markets have been delisted, positions have been closed and all…
— Eduard (@0xEduard) July 30, 2024
In a post X On July 31, ZKX Protocol founder Eduard Jubany Tur expressed regret over the decision, citing the inability to find “an economically sustainable path forward for the protocol.” The decision to halt operations stemmed from multiple factors, Tur said, citing minimal user engagement and significantly reduced trading volumes.
“Our user engagement has been minimal, with only a few individuals mining STRK and ZKX rewards. As a result, trading volumes have dropped significantly and daily revenues barely cover a fraction of our cloud server expenses.”
Tur on July 30th
The founder of the ZKX protocol also added that the project has cleared all markets and closed positions, with funds now being returned to “each user’s trading account.” Tur urged users to move their funds from trading accounts to their self-custodied wallets, with the closure period set to last until the end of August.
ZKX/USD 1-hour price chart, July 17-31 | Source: crypto.news
Following the news, the price of the ZKX token has dropped by more than 50% and is now hovering around $0.015, according to data from crypto.news.
Founded in 2021 by a team led by Tur, Naman Sehgal, and Vitaly Yakovlev, ZKX Protocol’s main idea was to bring derivatives trading into the decentralized finance ecosystem using zk rollup based on Starknet.
In July 2022, the ZKX protocol lifted up $4.5 million in a seed funding round. The investment came from a pool of investors, including StarkWare, Alameda Research, Huobi, Amber Group, and Crypto.com, among others. In total, the protocol raised $7.5 million.