Starknet-Based ZKX Protocol Closes Due to Low Usage and Token Value

ZKX, the Starknet-based social trading platform, has officially shut down as of Tuesday and is instructing users to withdraw their assets before the end of the month

Starknet-based social trading platform ZKX has closed down and is urging users to withdraw their funds by the end of August.

ZKX, a social trading platform built on Starknet, has officially closed its operations on Tuesday, instructing users to withdraw their assets during a transition period that will conclude at the end of the month.

In a statement posted on X, ZKX founder Eduard Jubany Tur announced the closure with regret, explaining that despite their best efforts, they were unable to secure a viable financial path to continue operating the protocol.

The platform has already removed all markets, closed open positions, and returned funds to users. Individuals can now transfer their assets from ZKX’s self-custodial wallets on Starknet back to layer 1 through the available bridge at their convenience.

Emphasizing that all trading markets have been removed and positions have been closed with funds returned to users, Tur highlighted that users can now withdraw their assets from their self-custodial ZKX wallets on Starknet to layer 1 at any time.

“The sunset period will run through the end of August. After August 31st, ZKX's vesting and distribution processes will continue. We strongly advise users to withdraw their funds and claim any pending STRK rewards before the end of the month,” Tur stated.

Tur explained that the decision to shut down was prompted by several factors, including low user engagement and reduced trading volumes. These issues resulted in daily revenue that was insufficient to cover cloud server costs and other operating expenses.

He also mentioned that the current value of the token made it unsustainable to support the protocol. "The token generation event fell short of expectations and the losses from this effort are part of the difficulties we now face,” Tur added.

ZKX raised a total of $7.6 million through strategic investment rounds, with significant backing from key players in the crypto venture capital scene, including Flowdesk, Hashkey, Amber Group, Crypto.com, and StarkWare.

The ZKX airdrop, which began on June 19, aimed to reward active community members and early supporters. However, as is often the case with airdrops, many recipients opted to sell their tokens soon after receiving them.

"As major holders decide to cash out, the token's value continues to drop, which in turn devalues the vast work and infrastructure being built by appchains and dApps within ecosystems like ours,” Tur remarked.

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