This closure of ZKX underscores the significance of transparency and accountability in cryptocurrency initiatives.
The recent closure of ZKX caused a significant impact on the cryptocurrency community, prompting Amber Group, an asset management firm and market maker, to provide its perspective, advocate for transparency, and provide support to the community.
The ZKX protocol, a social derivatives trading platform that operated on the Ethereum-based Starknet layer-2 network, ceased operations on July 31. The project’s progenitor attributed its continued existence to the absence of viable economic prospects.
The Amber Group conveyed astonishment in an X post following Eduard Jubany Tur’s announcement on July 30 that the protocol would be terminated.
During the token generation event on June 19, the firm was intimately involved with ZKX as a market maker, facilitating liquidity.
Under a standard loan agreement with no additional fees, Amber Group received a loan of 2 million ZKX (ZKX) tokens to guarantee the seamless operation of the market. The firm’s strategy was to preserve a market-neutral position and consistent liquidity.
Despite the absence of organic buying interest at its inception, Amber Group continued to acquire ZKX tokens in order to preserve liquidity, despite the fact that prices were declining. Nevertheless, the ZKX team requested the return of 1 million ZKX tokens on June 24 in order to reduce circulation and increase community confidence. Amber Group concurred, reducing its token loan to 1 million tokens.
Amber Group has also acquired 2 million ZKX tokens from the open market as a result of its liquidity provision initiatives, bringing its total holdings to 3 million ZKX tokens.
ZKX has been the subject of disappointment and frustration from other investors, such as Hashkey Capital. They have complained that the protocol did not provide them with adequate transparency and accountability regarding their financial information, operational plans, and financial decisions.
ZKX’s failure to provide transparent and expeditious disclosures about its operations and management eroded trust and confidence in the initiative, according to Hashkey. Additionally, the organization lamented that ZKX’s communication manner was unresponsive and Tur’s management of the circumstance was “regrettable.”
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