Bitget App
Trade smarter
Open
HomepageSign up
Bitget>
News>
ZKX Protocol Faces Crypto Industry Backlash After Sudden Discontinuation

ZKX Protocol Faces Crypto Industry Backlash After Sudden Discontinuation

DailyCoin2024/08/04 21:00
By: DailyCoin
BTC-0.01%ZKX0.00%ETH-0.05%
  • ZKX protocol has faced backlash after ceasing its operations.
  • The protocol cited a lack of an economically viable path among the reasons for its discontinuation.
  • Investors complained that they were not informed of the shutdown.

Two crypto firms have issued statements criticizing the ZKX Protocol for ceasing its operations suddenly, without prior notice.

The Starknet-based social derivatives trading platform suspended its business operations on July 30, citing a lack of an economically viable path and minimal user engagement. The protocol said it had delisted all markets, closed all positions, and returned funds to each user’s account.

Sponsored

While ZKX implied that its users wouldn’t be affected, giving them a sunset period to shift their funds, investors who previously backed the project didn’t take the development lightly. Market maker Amber Group was the latest to share its perspective about the shutdown.

Amber Group’s Take on ZKX Protocol Shutdown

In a recent X post , Amber Group said the decision to shut down the ZKX protocol was “made without prior communication,” highlighting the importance of transparency in the nascent digital asset industry.

“It sets a concerning precedent and impacts investors, service providers, and, most importantly, the community. While we acknowledge the risks involved in entrepreneurship, we believe transparency and accountability are fundamental to our industry and each project’s ultimate success.” The post read.

Amber Group has been involved with ZKX since the project’s TGE, which saw the market maker receive a loan of 2 million ZKX tokens to provide liquidity on the launch date. The market maker has been “net-buying” ZKX tokens since the listing due to a lack of organic buying interest upon launch.

Per the statement, Amber Group reduced its loan to 1 million tokens on June 24 following a request from the ZKX team. This was the last communication between the protocol and the market maker before the shutdown.

Sponsored

“The last update we received was on July 30, when the project announced the cessation of operations.” Amber Group said.

Other companies that have called out ZKX for exhibiting a lack of transparency and accountability include HashKey Capital, which termed the protocol founder’s handling of the situation “regrettable.”

Stay updated on why WazirX is facing the SHIB community backlash:
WazirX Faces SHIB Community Backlash Over Compensation Plan

Read about the latest performance of Bitcoin and Ether ETFs:
Bitcoin and Ether ETFs Bleed Millions Amid Wider Market Downturn

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

New spot margin trading pair — BARD/USDT!
Bitget Announcement2025/09/19 07:28
BTC/ETH VIP Earn Ultimate Carnival is officially here!
Bitget Announcement2025/09/18 07:12
New spot margin trading pair — FLOCK/USDT!
Bitget Announcement2025/09/18 06:55
0GUSDT now launched for pre-market futures trading
Bitget Announcement2025/09/18 05:39

Trending news

More
1
New spot margin trading pair — BARD/USDT!
2
BTC/ETH VIP Earn Ultimate Carnival is officially here!

Crypto prices

More
Bitcoin
Bitcoin
BTC
$115,710.42
-0.23%
Ethereum
Ethereum
ETH
$4,474.56
+0.13%
XRP
XRP
XRP
$2.99
+0.11%
Tether USDt
Tether USDt
USDT
$1
+0.00%
BNB
BNB
BNB
$1,053.37
+5.20%
Solana
Solana
SOL
$239.57
+0.84%
USDC
USDC
USDC
$0.9998
-0.00%
Dogecoin
Dogecoin
DOGE
$0.2675
+0.73%
TRON
TRON
TRX
$0.3443
-0.79%
Cardano
Cardano
ADA
$0.8886
-0.79%
How to sell PI
Bitget lists PI – Buy or sell PI quickly on Bitget!
Trade now
Become a trader now?A welcome pack worth 6200 USDT for new users!
Sign up now
Trade smarter