ChainCatcher news, derivatives DEX ZKX founder Eduard recently responded to the reason why the company announced the suspension of operations a few weeks after raising $7.6 million and TGE just started. Eduard explained that the funds were raised from 2021 to 2024 to support a 30-person team to develop a dedicated blockchain to expand perpetual contracts.

He pointed out that the funds were used for multiple code audits, TGE listing fees, AWS cloud service expenses, and developer promotion activities for Cairo programming. Eduard emphasized that all user funds have been fully returned, more than 80% of users have withdrawn from the agreement, and the main wallet is self-custodial.

Although the core founders did not sell any tokens, four years of hard work and life results have gone to waste. Eduard mentioned that the DeFi team faced tremendous community pressure, vulnerabilities, scams, and hacker attacks. The team tried its best to protect customer funds, and Binance also knew the identities of some attackers.

Finally, Eduard reflected that strategic decisions such as choosing a full-chain smart contract protocol instead of L3 may be more financially wise, and said that the team learned lessons from this painful experience.