Starknet’s ZKX Protocol Ceases Operations Due To Financial Struggles

Author

Hongji Feng

Author

Hongji Feng

About Author

Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

Author Profile

Share

Copied

Last updated:

July 30, 2024 16:37 EDT

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more

Starknet-based ZKX Protocol will shut down with all markets delisted and funds returned to users due to financial challenges.

According to a July 30 social media post by ZKX founder Eduard, the decision to discontinue operations stems from minimal user engagement, low trading volumes, and insufficient revenue to cover operational costs.

ZKX Founder Eduard Announces Discontinuation

Eduard encouraged users to withdraw their funds by the end of August, and the sunset period will continue until the end of the month. The protocol faced challenges with token value decline and broader DeFi market exhaustion.

“We strongly encourage everyone to withdraw their funds before sunset through August and claim any pending STRK rewards,” said Eduard.

“The decision to halt operations is based on several key factors,” Eduard added. “Our user engagement has been minimal, with only a few individuals mining STRK and ZKX rewards. Consequently, trading volumes have significantly decreased, and daily revenue can barely cover a fraction of our cloud server expenses.”

Eduard highlighted the broader exhaustion of the DeFi paradigm as impacting the entire sector. Despite the challenges, he expressed gratitude to those who remained supportive during this period.

“We appreciate the high degree of accountability that they required from us, but it has been exceptionally challenging to sustain and engage with a DeFi community in an industry that’s heavily driven by token incentives and airdrop value extraction,” stated the founder.

Important Statement 30.07.24

With much regret, we have to announce the discontinuation of the ZKX protocol. Despite our best efforts, we have been unable to find an economically viable path for the protocol.

(1) All markets have been delisted, positions have been closed and all…

— Eduard (@0xEduard) July 30, 2024

Do Kwon’s Terraform Labs Ceases Operations

In June, Do Kwon’s blockchain protocol Terraform Labs ceased operations after settling its lawsuit with the Securities and Exchange Commission (SEC). The company’s CEO, Chris Amani, stated that Terraform intended to dissolve and would close operations completely.

“I’m incredibly proud that we were able to hold this company and ecosystem together and continue to build innovative products through all of this,” said Amani. “We were well positioned to accelerate things if we had won the trial, but unfortunately we lost and as a result, can no longer operate.”