StarkNet Derivatives Exchange ZKX Closes Down: Low Userbase, High Costs Cited

IconCryptoNewsTerminal Staff30 Jul, 2024

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StarkNet Derivatives Exchange ZKX Closes Down: Low Userbase, High Costs Cited

ZKX, a derivatives exchange built on the StarkNet Layer 2 network, will be shutting down on July 30th. The exchange's founder, Eduard (@0xEduard), announced the news on Twitter, citing low userbase and unsustainable operating costs. Since ZKX's launch in June 2022, it has struggled to gain traction in the derivatives market. Despite raising $7.6 million in funding, the exchange has not been able to attract a significant number of users. As a result, operating costs have become unsustainable. All trading pairs and positions on ZKX will be closed on July 30th. Users will have until August 31st to withdraw their funds via the bridge. After this date, the ZKX protocol will be discontinued. The project's shutdown is a setback for the StarkNet ecosystem. However, it is important to note that $ZKX token vesting will continue after the project shutdown. This suggests that the team behind ZKX remains committed to the long-term success of the StarkNet network.

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