ZKX founder responds to suspension doubts: $7.6 million in financing was raised from 2021 to 2024 and has been used for various expenses.
PANews, July 31 news, regarding "why did they raise $7.6 million in funding, and TGE just started a few weeks ago, but ZKX announced it will shut down", the founder of the derivatives DEX ZKX, Eduard, responded on the X platform: "The previous $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. It's a total of 4 years. This includes multiple code audits with Nethermind, TGE listing costs, AWS fees (running L3 on the cloud is very 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. What people also don't talk about are all the community pressures, vulnerabilities, scams, and hacks that DeFi teams have to endure. We did our best to protect customer 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 would have been more financially prudent. We've learned from this painful experience."
Previously, yesterday's news reported that the derivatives trading protocol ZKX announced it will cease operations, reminding users to withdraw their funds by the end of August.
