ZKX Protocol, the first perpetual futures exchange on Starknet, has ceased operations due to the lack of user engagement. The decentralized perpetual futures trading platform based on Starknet is winding down its activities as it faces economic challenges.

Important Statement 30.07.24: “With much regret, we have to announce the discontinuation of the ZKX protocol. Despite our best efforts, we have been unable to find an economically viable path for the protocol,” said Eduard Jubany Tur, founder of ZKX Protocol, in a statement on July 31. Tur cited minimal user engagement and significantly reduced trading volumes as key reasons for the decision.

“Our user engagement has been minimal, with only a few individuals mining STRK and ZKX rewards. Consequently, trading volumes have significantly decreased, and daily revenue can barely cover a fraction of our cloud server expenses,” Tur said on July 30.

All markets have been delisted, positions closed, and funds returned to each user’s trading account. Tur urged users to move their funds from trading accounts to their self-custodied wallets, with the closure period set to last until the end of August.

Following the news, the price of the ZKX token plunged by over 50% and is trading around $0.015.

Founded in 2021 by a team led by Eduard Jubany Tur, Naman Sehgal, and Vitaly Yakovlev, ZKX Protocol aimed to bring derivatives trading to the decentralized finance ecosystem using zk-rollups based on Starknet. In July 2022, ZKX Protocol raised $4.5 million in a seed funding round, with investments from StarkWare, Alameda Research, Huobi, Amber Group, and Crypto.com, among others, securing a total of $7.5 million in funding.

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