ZKX protocol, the primary perpetual futures change on Starknet, has ceased operations because of the lack of person engagement.
ZKX protocol (ZKX), a decentralized perpetual futures buying and selling platform primarily based on Starknet (STRK), is winding down its operations because it faces financial challenges resulting from minimal person engagement.
In an X publish on July 31, ZKX Protocol founder Eduard Jubany Tur expressed his remorse over the choice, citing the shortcoming to seek out “an economically viable path for the protocol.” The choice to halt operations stemmed from a number of elements, Tur mentioned, referring to minimal person engagement and considerably diminished buying and selling volumes.
“Our person engagement has been minimal, with just a few people mining STRK and ZKX rewards. Consequently, buying and selling volumes have considerably decreased, and each day income can barely cowl a fraction of our cloud server bills.”
Tur on July 30
The ZKX Protocol founder additionally added that the challenge delisted all markets and closed positions, with funds now returned to “every person’s buying and selling account.” Tur urged customers to maneuver their funds from buying and selling accounts to their self-custodied wallets, with the closure interval set to final till the tip of August.
Following the information, the value of the ZKX token plunged by over 50% and is buying and selling round $0.015, per information from crypto.information.
Based in 2021 by a group led by Tur, Naman Sehgal and Vitaly Yakovlev, ZKX Protocol’s major thought was to deliver derivatives buying and selling to the decentralized finance ecosystem utilizing zk-rollups primarily based on Starknet.
In July 2022, ZKX Protocol raised $4.5 million in a seed funding spherical. The funding got here from a pool of traders, together with StarkWare, Alameda Analysis, Huobi, Amber Group, and Crypto.com, amongst others. In whole, the protocol secured $7.5 million.