Amber Group has criticized ZKX protocol’s abrupt decision to cease operations, stating that it sets a concerning precedent. Hashkey Capital, another market participant, has also expressed dissatisfaction with ZKX’s lack of transparency and accountability. ZKX founder Eduard Jubany Tur identified limited user engagement and low trading volumes as factors that ultimately impacted the protocol’s financial viability.
ZKX Shutdown: Amber Group Slams the Protocol's Lack of Transparency
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Investors Slam ZKX Protocol’s Lack of Transparency
The digital finance firm and market maker Amber Group has criticized the decentralized perpetual trading platform ZKX for abruptly ceasing operations. ZKX’s decision, made without prior warning, sets a concerning precedent that affects investors, service providers, and the community.
Hashkey Capital, another market participant, has also expressed dissatisfaction with ZKX’s lack of transparency and accountability. The firm raised concerns about ZKX’s financial disclosures, fund allocation, and operational plans. Additionally, Ye Su, a founding partner at Arkstream Capital, voiced discontent with ZKX founder Eduard Jubany Tur’s handling of the situation.
The three investors’ frustration was triggered by Tur’s comments following the announcement of the ZKX protocol’s discontinuation. Tur cited limited user engagement and low trading volumes as factors impacting the protocol’s financial viability.
Furthermore, Tur asserted that the token generation event (TGE) fell short of expectations, leading to losses that have impacted its current situation. Yet, the ZKX protocol founder indicated that rather than getting sympathy, his team has faced threats, abuse, and ongoing hacking and scam attempts.
Amber Group Urges ZKX Team to Address Situation Constructively
Meanwhile, in a statement disseminated through X, the Amber Group acknowledged the risks associated with the project. However, the market maker contends that transparency and accountability are essential for success across both individual projects and the entire industry.
“We believe that clear communication and transparency are essential for fostering trust and collaboration within the crypto community. We hope that these principles will guide future projects and that the ZKX team will take the necessary actions and accountability to bring more transparency and address the situation constructively,” the Amber Group said.
To highlight its commitment to full transparency, the market maker disclosed that it had accumulated 2 million ZKX tokens from the open market. Additionally, the Amber Group stated that it holds one million ZKX tokens, which were provided as a loan to facilitate liquidity on the launch date, June 19. This brings the market maker’s overall holdings to three million tokens.
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