PANews reported on August 4 that according to The Block, ZKX investors and market makers who participated in the recent closure said they were surprised by the closure announcement and did not receive any warning in advance. Ye Su, founder of ArkStream Capital, said on X, "When ZKX closed, as investors, we had no news at all. The team claimed that they had no money, refused to provide any financial or expenditure details, and did not communicate with us." HashKey Capital echoed Su's concerns in its own post, complaining that ZKX failed to share its financial situation and future plans with the venture capital firm.
Amber Group, which describes itself as an investor and market maker in ZKX, said it holds 3 million ZKX tokens after returning half of its initial loan of 2 million tokens and purchasing 2 million tokens as part of market making operations since the token generation event. "Due to the lack of buying interest at launch and our commitment to providing ongoing liquidity, we have been net buying ZKX tokens since listing, even as prices have fallen. This approach is consistent with our commitment to supporting projects and their communities, ensuring stable market conditions, potentially even at our own expense," said Amber Group, which describes itself as an investor and market maker in ZKX. "Starting a business inherently involves risk and the possibility of failure, so open communication, transparency, and accountability are invaluable qualities for founders. We hope that founders recognize that a good reputation is an important asset to secure future financing."
The founder of ZKX defended against allegations of deception by investors, arguing that advance notice could have harmed the protocol.
Related reading: ZKX suspension questioned again: Blaming the market maker, a carefully planned “scam”?