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

The ZKX protocol, a Starknet-based social trading platform, has officially ceased operations, leading to a dramatic decline in the value of its token. 

ZKX Shuts Down Operations

Eduard Jubany Tur, founder of ZKX, announced 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.

“Despite our best efforts, we could not sustain the platform’s financial viability,” Tur stated. 

 

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.

Tur explained that the token's value had become unsustainable, exacerbating the platform's financial difficulties.

“The token generation event did not meet our expectations, and the resulting losses have contributed to our current predicament,” Tur added. 

 

This move has caused the ZKX token to plummet by 52% in just 24 hours.

Withdrawal Instructions for Users

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.

“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.

Funding and Future Prospects

Just last June, ZKX successfully raised $7.6 million in total funding, with contributions from Flowdesk, GCR, and DeWhales. 

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.