According to Foresight News, Eduard, the founder of ZKX, responded to ZachXBT's question about "why ZKX announced its closure when it raised $7.6 million in funds and TGE just started a few weeks ago", saying, "The previous $7.6 million in financing was raised from 2021 to 2024 to support a team of 30 people to build a dedicated blockchain for scaling perps. A total of 4 years. This includes multiple code audits with Nethermind, TGE listing costs, fees on AWS (running L3 on the cloud is expensive), developer adoption activities for Cairo programming, and more. All user funds have been refunded and more than 80% of users have withdrawn from the protocol (the main wallet is self-custodial). The core founders did not sell any of their allocated tokens, and unfortunately, 4 years of work and life have come to nothing. What people are not talking about is DeFi All the community pressure, bugs, scams, and hacks the team had to endure. We did our best to protect customer funds and Binance knew who some of the attackers were. In hindsight, choosing to run a fully on-chain smart contract protocol instead of L3 and other strategic decisions would have been financially smarter. We learned from the hard experience.”
ZachXBT responded, “You left out all the people who were tricked into buying your scam tokens at TGE because you closed it shortly after the TGE announced the financing. Everything you just shared did not happen between TGE and today.”