ZKX Platform on Starknet Ecosystem Suspended, ZKX and STRK Prices Drop

Bittime - On July 30, 2024, the ZKX platform, which is built on the Ethereum Layer 2 network Starknet, announced the cessation of its operations. This announcement was made by ZKX founder, Eduard Jubany Tur, via social media.

Impact on ZKX Token Price

After this announcement, the price of the ZKX token fell drastically by 53.18% in 24 hours. At the time this article was written, the price of ZKX fell 35.45% and was trading at $0.01951 or around Rp318.08.  

Source: Bittime.com

Pasca cessation of operations of the ZKX platform, STRK prices have also decreased. Based on today's Bittime market, the price of STRK was observed to have fallen 4.93% in 24 hours and is currently trading at IDR 7,999 or around $0.49.

ZKX Operations’ Suspension 

According to Eduard Jubany Tur, user involvement in the ZKX protocol is minimal, with only a few individuals involved in the mining rewards program. Trading volumes also experienced a significant decline, and the protocol's daily revenue was only able to cover a small portion of cloud server costs. This condition makes it impossible to cover salaries and other operational costs. 

On June 19, ZKX successfully raised $7.6 million in a strategic funding round with contributions from investors such as Flowdesk, GCR, and DeWhales. However, even with this cash injection, the ZKX protocol could not find a sustainable way to support its operations.

ZKX Operations’ Suspension Steps

1. Market Removals and Refunds: All markets have been cleared, trading positions closed, and funds returned to each user's trading account.
2. Transfer of funds: Users can transfer funds from their trading account to their primary self-custodial account.
3. Mandiri Custodian Account on Starknet: Self-custodial ZKX accounts are wallets on Starknet. Users can withdraw funds via the bridge Starkway return to L1 at any time.
4. Period Sunset: The sunset period will last until the end of August. Vesting and distribution of ZKX will continue after sunset on September 1.
5. Withdrawing funds: Users are strongly encouraged to withdraw their funds before the end of August and claim their pending STRK rewards on the ZKX app.

Sluggishness in the DeFi Sector

Apart from the lack of user engagement and low trading volume, Eduard Jubany Tur also blamed the ongoing sluggishness in the DeFi sector. The recent launch of the ZKE token also did not live up to expectations, and the resulting losses contributed to the current situation.

Major token holders cashing out their assets also causes a continued decline in token value. Although efforts have been made to support the protocol, including high monthly payments and rebates, these are not enough to cover the increased operational costs starting in August.

Cara Beli Crypto di Bittime

You can buy and sell crypto assets in an easy and safe way through Bittime. over is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

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