Ethereum

<ul>
 <li>ZKX protocol announces the seizure of services six months after its launch in the mainnet.&nbsp;</li>
 <li>The protocol’s token, $ZKX exhibits a 50.52% daily decline in price according to CMC data.</li>
</ul>
The past few months saw the launch of several new blockchain projects within the sector. Amid a spur of activity, Ethereum L2 witnessed the launch of its safety protocol ZKX. The protocol drew market attention during its funding stages with investments from prominent community members. However, recently the protocol announced that it will be shutting down services.&nbsp;
ZKX protocol’s founder Eduard Jubany Tur <a href="https://x.com/0xEduard/status/1818206251089551810" target="_blank" rel="noopener noreferrer nofollow">announced</a> in an X post, that the token will be shutting down because of a lack of user activity. He provided a detailed report of the different causes that have led to the firm’s suspending services permanently. Tur referred to the inability to find a viable economic path resulting from minimal user activity.&nbsp;
Secondly, the founder quoted the ZKX token’s market value and trading volume reductions. The daily revenue generated was reported to be insufficient to cover company costs including aspects such as salaries and essential operational costs.&nbsp;
Notably, Eduard Tur also stated that there has been an increase in ‘the volume of threats and abuse has surged, alongside persistent hacking and scam attempts.’ However, the founder still believes that the project made notable contributions to the community.&nbsp;&nbsp;
Moreover, the team has also outlined plans to proceed further, in transferring user funds to the L1. Meanwhile, the ZKX token is currently trading at $0.01524 after incurring a 50.52% daily decline as per CMC <a href="https://coinmarketcap.com/currencies/zkx/" target="_blank" rel="noopener noreferrer nofollow">data</a>. Additionally, traders have been exchanging the ZKX tokens for other cryptocurrencies due to the price decline.&nbsp;
<h3 class="wp-block-heading" id="h-how-is-zkx-moving-forward-in-user-funds-transfer">How is ZKX Moving Forward in User Funds Transfer?&nbsp;</h3>
The ZKX Protocol went live on the <a href="https://thenewscrypto.com/ethereum-ico-participant-awakens-after-9-years-moves-eth-on-networks-9th-birthday/" target="_blank" rel="noopener noreferrer nofollow">Ethereum</a> mainnet in January 2024, following which its $ZKX token launched in June. The protocol, though, showed a promising start, as aforementioned has confronted obstacles leading to the shutdown.&nbsp;
Furthermore, the founder explained the steps following the shutdown. Presently, ZKX has delisted all markets, closed all positions, and returned user funds to their individual accounts. Additionally, the users can transfer their funds to the main self-custodial account after which it can be withdrawn through the Starkway bridge onto L1 at any time.&nbsp;
Finally, the <a href="https://thenewscrypto.com/starknet-strk-faces-16-price-drop-within-24-hrs-of-trading/" target="_blank" rel="noopener noreferrer nofollow">StarkNet</a>-based protocol has allotted the final day of August as the period for fund transfers. Following this, ZKX token vesting and distribution will continue until September.&nbsp;&nbsp;
Highlighted Crypto News Today:&nbsp;
<a href="https://thenewscrypto.com/mt-gox-moves-billions-in-bitcoin-for-final-creditor-repayments/" target="_blank" rel="noopener noreferrer nofollow">Mt. Gox Moves Billions in Bitcoin for Final Creditor Repayments</a>

StarkNet-Based ZKX Protocol Shuts Down Due to Economic Instability

Table of Contents

TheNewsCrypto

Other articles published on Jul 31, 2024

Pepe Eats Solana (PEPEATS) Will Hit $20 Million Before Exchange Listings, While SHIB and Dogecoin...

Trump Raises 25 Million in Nashville Bitcoin Conference Fundraiser

ONDO Price Gears Up for $1.5 Rally as On-Chain Recovery Gains Steam

Bitcoin Price Prediction for Q2 & Q3 2024: Will the BTC Price Hit $100K?

Analyst says 99Bitcoins token could 10x as presale enters final days

Tether profits hit $5.2b in H1 2024, new record

Join our free newsletter for daily crypto updates!