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The ZKX Protocol, built on Starknet, will be shutting down, resulting in the delisting of all markets and the return of funds to users due to financial difficulties.
As stated in a social media update on July 30 by ZKX founder Eduard, the choice to cease operations is a result of low user participation, diminished trading volumes, and inadequate revenue to support operational expenses.
ZKX Founder Eduard Declares Closure
Eduard urged users to withdraw their funds by the end of August, with the closure period extending until the month’s conclusion. The protocol encountered issues related to the decline in token value and the overall fatigue within the DeFi market.
“We strongly advise everyone to withdraw their funds before the end of August and to claim any outstanding STRK rewards,” Eduard stated.
“The decision to stop operations is influenced by several critical factors,” Eduard noted. “User engagement has been low, with only a handful of individuals mining STRK and ZKX rewards. As a result, trading volumes have drastically fallen, and daily revenue barely covers a small portion of our cloud server costs.”
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Eduard pointed out that the overall exhaustion of the DeFi model is affecting the entire industry. Despite these challenges, he expressed appreciation for those who remained supportive during this time.
“We value the high level of accountability they expected from us, but it has been extremely difficult to maintain and connect with a DeFi community in a sector that is largely motivated by token incentives and airdrop value extraction,” the founder remarked.
Important Statement 30.07.24
With great regret, we must announce the termination of the ZKX protocol. Despite our best efforts, we have not been able to identify a financially sustainable 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 Ends Operations
In June, Do Kwon’s blockchain initiative Terraform Labs ended its operations following the resolution of its lawsuit with the Securities and Exchange Commission (SEC). The company’s CEO, Chris Amani, indicated that Terraform planned to dissolve and would completely cease operations.
“I’m extremely proud that we managed to keep this company and ecosystem intact and continue to develop innovative products throughout this period,” Amani stated. “We were well positioned to accelerate our efforts had we won the trial, but unfortunately, we lost and therefore can no longer function.”
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