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The crypto community was caught off guard when the social derivatives trading platform ZKX suddenly shut down. Amber Group, an asset manager, has expressed surprise and is calling for more transparency in the industry.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/3ea53b76da0d41d890d974d79d8a962f.png" />ZKX, which ran on Ethereum’s Starknet layer-2 network, announced its closure four days ago. According to founder Eduard Jubany Tur, the project had to shut down due to unfavorable economic conditions.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/33b42a5cc08541c5b4a40014311949b0.png" /><h3 id="amber-group-s-role-in-zkx-shutdown-and-call-for-transparency">Amber Group’s Role in ZKX Shutdown and Call for Transparency</h3>The recent shutdown of ZKX took everyone by surprise, particularly Amber Group, which had been deeply involved with the platform. Amber Group played a significant role in ZKX’s market by providing crucial liquidity. They were instrumental in the <a href="https://cryptosheadlines.com/bnb-chain-burns-970m-in-latest-token-event/" rel="noopener noreferrer nofollow">token generation event</a> held in June, ensuring liquidity through a loan of 2 million ZKX tokens without additional fees.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/5e39c499dd474b048cb7b7319087ac74.png" />Source: <a href="https://x.com/0xEduard/status/1818206251089551810" rel="noopener noreferrer nofollow">X</a>Despite the initial lack of buying interest, Amber Group <a href="https://cryptosheadlines.com/shib-burn-rate-accelerates-price-continues-to-struggle-in-the-red-zone/" rel="noopener noreferrer nofollow">continued to purchase ZKX tokens to maintain liquidity as prices</a> fell. On June 24, ZKX’s team requested Amber Group to return 1 million tokens to decrease the circulating supply and enhance community confidence. Amber Group complied, <a href="https://cryptosheadlines.com/pancakeswap-suggests-reducing-tokens-to-450-million-can-cake-price-bounce-back/" rel="noopener noreferrer nofollow">reducing their loan to 1 million tokens</a>.Moreover, Amber Group <a href="https://cryptosheadlines.com/shib-whale-alert-9-6-trillion-tokens-bought-in-48-hours/" rel="noopener noreferrer nofollow">bought an additional 2 million ZKX tokens</a> from the open market, raising their total holdings to 3 million tokens. This effort was part of their strategy to stabilize the market amidst challenging conditions.<h3 id="zkx-closure-reactions-and-criticisms-from-investors">ZKX Closure: Reactions and Criticisms from Investors</h3>The sudden shutdown of ZKX occurred just a month after the platform raised $7.6 million in a funding round on June 19, which saw participation from investors like Flowdesk, GCR, and DeWhales. Earlier backers included notable names such as HashKey, Amber Group, Crypto.com, and StarkWare.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/33b42a5cc08541c5b4a40014311949b0.png" />HashKey has expressed strong disappointment with ZKX’s handling of the situation. They criticized the platform for its lack of transparency and accountability regarding financials, fund allocation, and operational plans. HashKey’s statement highlighted their frustration with ZKX’s reluctance to communicate openly and the founder’s handling of the shutdown. They emphasized that transparency and accountability are crucial for maintaining trust and securing future funding in the industry.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/5686f2b307f14a3f9c69f37b8da86828.png" />Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.Join Cryptos Headlines <a href="https://linktr.ee/cryptosheadlines.com" rel="noopener noreferrer nofollow">Community</a>Follow Cryptos Headlines on <a href="https://news.google.com/publications/CAAqBwgKMLz3-wowvuzoAg" rel="noopener noreferrer nofollow">Google News</a>

Amber Group Calls for Transparency Following ZKX Shutdown

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