ZKX founder responds to suspension doubts: $7.6 million in financing was raised from 2021 to 2024, supporting the team's operations.
Odaily News: In response to "Why did you raise $7.6 million in funding, and the TGE just started a few weeks ago, but ZKX announced that it is shutting down," the founder of the derivatives DEX ZKX, Eduard, responded on the X platform: "The $7.6 million in funding was raised from 2021 to 2024 to support a team of 30 people to build a dedicated blockchain for expanding perps. In total, 4 years, this includes multiple code audits with Nethermind, TGE listing costs, AWS fees (running L3 on the cloud is expensive), developer adoption activities for Cairo programming, and more. All user funds have been refunded, with over 80% of users having exited the protocol (the main wallet is self-custodied). The core founders have not sold any of their allocated tokens, unfortunately, 4 years of work and life have gone to waste. People also don't talk about all the community pressure, exploitation, fraud, and hacks that DeFi teams have to endure. We did our best to protect our customers' funds, and Binance knows some of the attackers. In hindsight, running a fully on-chain smart contract protocol instead of L3 and other strategic decisions may have been more financially prudent. We have learned a painful lesson." Previously, the derivatives trading protocol ZKX announced that it will cease operations and reminded users to withdraw their funds by the end of August.
