Token

Value

Starknet

The ZKX protocol, a Starknet-based social trading platform, has officially ceased operations, leading to a dramatic decline in the value of its token.&nbsp;
<h2 dir="ltr" id="span-span-zkx-shuts-down-operations-span-span">ZKX Shuts Down Operations</h2>
Eduard Jubany Tur, founder of ZKX,&nbsp;<a style="text-decoration:none" href="https://x.com/0xeduard/status/1818206251089551810">announced</a> the closure in a statement posted on X. Tur expressed regret over the decision, citing the inability to secure a viable financial path despite significant efforts. The closure follows a series of challenges, including low user engagement and reduced trading volumes.
&nbsp;
<blockquote>
 “Despite our best efforts, we could not sustain the platform’s financial viability,” Tur stated.&nbsp;
 &nbsp;
</blockquote>
The company has removed all trading markets, closed open positions, and returned funds to users. Individuals can now transfer their assets from ZKX’s self-custodial wallets on Starknet back to layer 1 using the available bridge.
&nbsp;
Tur explained that the token's value had become unsustainable, exacerbating the platform's financial difficulties.
&nbsp;
<blockquote>
 “The token generation event did not meet our expectations, and the resulting losses have contributed to our current predicament,” Tur added.&nbsp;
 &nbsp;
</blockquote>
This move has caused the ZKX token to&nbsp;<a style="text-decoration:none" href="https://coinmarketcap.com/currencies/zkx/">plummet by 52%</a> in just 24 hours.
<h2 dir="ltr" id="span-span-withdrawal-instructions-for-users-span-span">Withdrawal Instructions for Users</h2>
ZKX has initiated a transition period, urging users to withdraw their assets before August 31st. During this period, users can transfer their funds from ZKX’s self-custodial wallets on Starknet to layer 1 through the available bridge. ZKX has also emphasized the importance of claiming any pending STRK rewards before the deadline.
&nbsp;
<blockquote>
 “The sunset period will run through the end of August. After August 31st, ZKX’s vesting and distribution processes will continue. We strongly advise users to withdraw their funds and claim any pending STRK rewards before the end of the month,” Tur stated.
</blockquote>
<h2 dir="ltr" id="span-span-funding-and-future-prospects-span-span">Funding and Future Prospects</h2>
Just last June, ZKX successfully&nbsp;<a style="text-decoration:none" href="https://zycrypto.com/zkx-the-first-social-decentralized-perpetual-exchange-successfully-raises-7-6m-debuts-governance-token/">raised $7.6 million</a> in total funding, with contributions from Flowdesk, GCR, and DeWhales.&nbsp;
&nbsp;
This capital was intended to accelerate the development of the ZKX Protocol, introducing features like social copy trade pools and cross-chain interoperability. Despite these efforts, the platform struggled with financial sustainability.

ZKX Protocol Closes, Triggering Over 50% Drop in ZKX Token Value

Table of Contents

BSCN

Other articles published on Aug 7, 2024

Binance Records $1.2 Billion Net Inflow Amid Market Downturn

Grayscale Introduces Bittensor and Sui Trusts for Crypto Investment

Survive and Thrive: Smart Moves to Outperform in Down Markets

$2 Billion Ethereum Being Moved From Dormant Wallets, China Dumping ETH?

Could XRP Flip Ethereum During The Bull Run? Crypto Whales Continue To Bet Big On Rollblock

Core Scientific’s $6.7B AI Investment Sends Shares Up 140% After Bankruptcy Struggles

Join our free newsletter for daily crypto updates!