StarkNet’s ZKX Protocol, a decentralized trading platform, was abruptly closed without prior notice, which surprised investors and market managers.
According to a post by The Block, the abrupt termination of StarkNet’s ZKX Protocol has taken investors and market makers by surprise. The event occurred without any prior notification or warning to investors or market participants, resulting in many inquiries and accusations.
Ye Su, the founder of ArkStream Capital, addressed X and stated that the investors were taken aback by the company’s closure. Investors received no notification regarding ZKX’s closure. Su stated that the team denied having any financial or expenditure information, claimed that they were out of money, and refused to communicate with us.
According to HashKey Capital, ZKX had never disclosed its financial status or future plans. Amber Group, an additional significant investor and market creator, disclosed that it maintains three million ZKX tokens on X.
Amber indicated that the project’s failure was precipitated by the absence of organic interest and ongoing financial losses, despite the fact that efforts were made to preserve liquidity in the market by purchasing tokens as prices declined. Subsequently, the organization requested transparency and accountability in these endeavors.
According to blockchain analyst ZachXBT, some have even compared it to a “rug draw,” citing the token generation event and its subsequent instantaneous loss of value.
StarkNet’s ZKX protocol, which was designed to offer a decentralized order book similar to that of dYdX, was intended to endow DeFi with properties such as trustlessness and independence from third parties. Despite allegations of misconduct, the protocol’s founder defended the closure decision.
Eduard Jubany Tur, the proprietor of ZKX, defended this action by asserting that the project could not be maintained in light of the token’s underperformance. He guaranteed that the closure would safeguard consumers until all markets were securely delisted.
Tur further stated that the decision to disclose it beforehand could have compromised customer funds, as prospective exploits would not have permitted such a warning.
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