Amber Group calls for transparency after ZKX closure
The recent shutdown of ZKX has sent shockwaves through the cryptocurrency community, prompting asset management firm and market maker Amber Group to share its perspective, promote transparency and support the community.
On July 31, the ZKX protocol, a social derivatives trading platform operating on the Ethereum-based Starknet Layer-2 network, has ceased operations. The project's founder cited a lack of sustained economic prospects for the project.
On XPost, Amber Group expressed dismay at ZKX founder Edward Jubani Tour's July 30 announcement that the protocol would be shut down.
Support ZKX market operations
The firm revealed that it was closely involved as a market maker with ZKX, facilitating liquidity at the June 19 token generation event.
To ensure smooth market operations, Amber Group has received a 2 million ZKX (ZKX) token loan under a standard loan agreement with no additional fees. According to the firm, the strategy was to maintain consistent liquidity and a market-neutral position.
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Despite the lack of organic buying interest at the launch, Amber Group continues to buy ZKX tokens to keep the price down. However, on June 24, the ZKX team requested the return of 1 million ZKX tokens to reduce circulation and strengthen community trust. Amber Group agreed, reducing the token loan to 1 million tokens.
As a result of its liquidity efforts, Amber Group has accumulated 2 million ZKX tokens from the open market, bringing its total holdings to 3 million ZKX tokens.
Investors are frustrated
Other investors, including Hashkey Capital, have expressed their disappointment and frustration with ZKX, stating that, like other investors, they have not received enough transparency and accountability regarding the protocol's financial information and operational plans and decisions.
According to Hashki, ZKX's failure to provide clear and timely information about its operations and management has eroded trust and confidence in the project. He also found ZKX's unresponsive communication style disappointing, and said Tur's handling of the situation was “disappointing.”
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