Amber Group addresses itself as the investor of ZKX, holding nearly 3 million ZKX tokens.
ZKX recently closed its platform, citing minimal user engagement and revenue decline.
HashKey Capital and Amber Group questioned ZKX’s abrupt closure, highlighting the significance of transparency.
Investors and market makers have responded to the abrupt closure of the Starknet-based social derivatives trading platform ZKX. In a recent X post, Amber Group, a prominent crypto company, addressed itself as an investor in ZKX, holding nearly 3 million ZKX tokens.
In light of recent developments with ZKX, while we honor our contractual confidential obligations with our clients including ZKX, we’d like to share our perspective and necessary information as an investor and market maker to promote transparency and support the community. We… https://t.co/Erx038azsH
— Amber Group (@ambergroup_io) August 3, 2024
On July 31, ZKX founder Eduard Jubany Tur announced without prior notification that the ZKX protocol was being discontinued. He pointed out several key factors that led to the platform’s shutdown. He posited that user engagement has become “minimal,” with only a few mining STRK and ZKX rewards, leading to a substantial decline in trading volume. While revenue has dipped, the platform failed to cover the essential expenses.
Important Statement 30.07.24With much regret, we have to announce the discontinuation of the ZKX protocol. Despite our best efforts, we have been unable to find an economically viable path for the protocol.(1) All markets have been delisted, positions have been closed and all…
— Eduard (@0xEduard) July 30, 2024
In response to the announcement, Amber Group criticized ZKX’s lack of communication, asserting that the protocol hasn’t notified investors about their halt. Further, the company revealed that they have been purchasing ZKX tokens even when the price declined. With a 1 million token loan and 2 million net accumulated, the platform currently holds 3 million ZKX tokens.
While questioning ZKX’s action, Amber Group reiterated the importance of commitment and transparency. They cited,
We believe transparency and accountability are fundamental to our industry and each project’s ultimate success…We believe that clear communication and transparency are essential for fostering trust and collaboration within the crypto community.
Similarly, HashKey Capital, a prominent blockchain platform, has also expressed its disappointment with ZKX’s unexpected closure. HashKey Capital argued that ZKX failed to disclose its financials, allocation of funds, and operational plans. In addition, it stated that ZKX’s lack of communication was “disappointing,” and the founder’s response to the situation was “regrettable.”
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