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Amber Group calls for transparency after ZKX shutdown
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2024-08-04 04:08:12
Amaka Nwaokocha1 hour agoAmber Group calls for transparency after ZKX shutdownThe ZKX team’s shutdown serves as a reminder of the critical role that transparency and accountability play in the success and stability of cryptocurrency projects.693 Total views2 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onThe recent shutdown of ZKX has sent ripples through the cryptocurrency community, prompting investor and market maker Amber Group to share its perspective and crucial information to promote transparency and support the community.
In a post on the X social platform, Amber Group disclosed that the announcement on July 30 that ZKX would cease operations shocked Amber Group as it did to the broader crypto community.Supporting ZKX’s market operations
The firm noted that it has been closely involved with ZKX as a market maker, facilitating liquidity during the token generation event (TGE) held on June 19.
To ensure smooth market operations, Amber Group received a 2 million ZKX tokens loan under a standard loan agreement with no additional fees. According to the investor, the strategy was to maintain consistent liquidity and a market-neutral position, which is crucial for the long-term success of projects and their communities.Source: HashKey Capital
Despite the lack of organic buying interest at launch, Amber Group continued to buy ZKX tokens to uphold liquidity, even as prices declined. However, on June 24, the ZKX team requested the return of 1 million ZKX tokens to reduce circulation and bolster community confidence. Amber Group agreed, reducing their token loan to 1 million tokens.
Related: Starknet launches $25M token incentive for top projects
Amber Group has accumulated 2 million ZKX tokens from the open market due to their liquidity provision efforts, bringing their total holdings to 3 million ZKX tokens. This includes the 1 million token loan and 2 million net accumulated tokens.Investors vent frustration
Other investors, including Hashkey Capital, have expressed their disappointment and frustration with the ZKX Protocol, stating that they, like other investors, did not receive sufficient transparency and accountability from the protocol regarding its financial information and operational plans and decisions.
According to Hashkey, ZKX Protocol’s failure to provide transparent and timely disclosures about its operations and management eroded trust and confidence in the project. Furthermore, ZKX’s unresponsive communication style was disappointing, and founder Eduard Jubany Tur’s handling of the situation was deplorable.
On July 31, the ZKX Protocol, a social derivatives trading platform operating on the Ethereum-based Starknet layer-2 network, ceased operations. Its founder cited a lack of feasible economic prospects for the project’s continued existence.
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