ZKX Protocol Faces Crypto Industry Backlash After Sudden Discontinuation
- 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
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.
You may also like
New York City plans to use AI to predict bad behavior in subway systems
Share link:In this post: The Metropolitan Transportation Authority (MTA) said it plans to use AI to detect potential problems on subway platforms. The Agency confirmed it won’t use facial recognition in surveillance. MTA added that the effort resulted from riders’ safety concerns following unprovoked subway system attacks.
US Treasury announces new Series I bond rate of 3.98% for May-October
Share link:In this post: The Treasury set the new Series I bond rate at 3.98% from May 1 to October 31, 2025. The rate includes a 2.86% variable portion and a 1.10% fixed rate, both updated by the Treasury. Bondholders’ interest rates shift based on when they bought the bonds, not when new rates are announced.

US economy shrank in first three months of the year as fears of tariff impact grow
Investors are still waiting for more concrete signs that the US is working on trade deals with other countries

Prosecutors push for 20-year sentence for ex-Celsius CEO

Trending news
MoreCrypto prices
More








