Starknet

Read

ZKX protocol, the first perpetual futures exchange on Starknet, has ceased operations due to the lack of user engagement. 
ZKX protocol (<a href="https://crypto.news/price/zkx/" target="_blank" rel="noreferrer noopener">ZKX</a>), a decentralized perpetual futures trading platform based on <a href="https://crypto.news/tag/starknet/" target="_blank" rel="noreferrer noopener">Starknet</a> (<a href="https://crypto.news/price/starknet/" target="_blank" rel="noreferrer noopener">STRK</a>), is winding down its operations as it faces economic challenges due to minimal user engagement. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Important Statement 30.07.24 With much regret, we have to announce the discontinuation of the ZKX protocol. Despite our best efforts, we have been unable to find an economically viable path for the protocol. (1) All markets have been delisted, positions have been closed and all…— Eduard (@0xEduard) <a href="https://twitter.com/0xEduard/status/1818206251089551810?ref_src=twsrc%5Etfw" target="_blank" rel="">July 30, 2024</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
In <a href="https://x.com/0xeduard/status/1818206251089551810" target="_blank" rel="">an X post</a> on July 31, ZKX Protocol founder Eduard Jubany Tur expressed his regret over the decision, citing the inability to find “an economically viable path for the protocol.” The decision to halt operations stemmed from multiple factors, Tur said, referring to minimal user engagement and significantly reduced trading volumes. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “Our user engagement has been minimal, with only a few individuals mining STRK and ZKX rewards. Consequently, trading volumes have significantly decreased, and daily revenue can barely cover a fraction of our cloud server expenses.” 
 Tur on July 30 
</blockquote> 
 You might also like: <a href="https://crypto.news/from-niche-to-necessity-why-defi-literacy-matters-opinion/"> From niche to necessity: Why defi literacy matters | Opinion </a> 
The ZKX Protocol founder also added that the project delisted all markets and closed positions, with funds now 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. 
<figure class="wp-block-image size-full">
 <a href="https://crypto.news/price/zkx/">
 <picture loading="lazy" decoding="async" class="wp-image-14288418"> 
 <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/07/ZKXUSD_2024-07-31_08-29-37.png.webp"> 
 <img loading="lazy" decoding="async" width="1856" height="1086" src="https://crypto.news/app/uploads/2024/07/ZKXUSD_2024-07-31_08-29-37.png" alt="ZKX plunges 50% as protocol winds down services due to low user demand - 33"> 
 </picture> </a>
 <figcaption class="wp-element-caption">
 ZKX/USD 1-hour price chart, July 17-31 | Source: <a href="https://crypto.news/price/zkx/" target="_blank" rel="noreferrer noopener">crypto.news</a>
 </figcaption>
</figure> 
Following the news, the price of the ZKX token plunged by over 50% and is trading around $0.015, per data from <a href="https://crypto.news/price/zkx/">crypto.news</a>. 
Founded in 2021 by a team led by Tur, Naman Sehgal and Vitaly Yakovlev, ZKX Protocol’s primary idea was to bring derivatives trading to the decentralized finance ecosystem using <a href="https://crypto.news/what-are-zk-rollups-solving-ethereums-scalability-issue/" target="_blank" rel="noreferrer noopener">zk-rollups</a> based on Starknet. 
In July 2022, ZKX Protocol <a href="https://pitchbook.com/profiles/company/501531-04" target="_blank" rel="">raised</a> $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 secured $7.5 million. 
 Read more: <a href="https://crypto.news/starknet-token-staking-to-start-by-the-end-of-2024/"> Starknet token staking to start by the end of 2024 </a>

ZKX plunges 50% as protocol winds down services due to low user demand

crypto.news

Other articles published on Jul 31, 2024

Polkadot is facing drop in activity, stepping its place to new promising altcoins

L3 KuCoin Listing: 166,000 Token Giveaway

What needs to happen for Ethereum (ETH) price to reach $4K?

What is Litentry Coin?

$1m Raised: Why Solciety’s Trending ICO Will Slay Meme Coin Rivals

Is USDT in danger as USDC’s market share rises 37%? Assessing…

Join our free newsletter for daily crypto updates!