Both ZKX investors and market makers were surprised by the shutdown, having received no prior notice

PANews reported on August 4th, according to The Block, investors and market makers involved in the recent shutdown of ZKX expressed surprise at the closure announcement, stating they received no prior warning. ArkStream Capital founder Ye Su said on X, "When ZKX shut down, as investors we had no information whatsoever. The team claimed they were out of money and refused to provide any financial or expenditure details or communicate with us." HashKey Capital echoed Su's concerns in its own post, complaining that ZKX failed to share its financial status and future plans with this venture capital firm.

Amber Group claims to be an investor and market maker for ZKX. After returning half of their initial loan of 2 million tokens and purchasing another 2 million tokens as part of their market-making operations since the token generation event, the company now holds 3 million ZKX tokens. "Due to a lack of buying interest at launch time and our commitment to providing continuous liquidity, we have been net buyers of ZKX tokens since listing even when prices fell. This approach aligns with our commitment to support projects and their communities by ensuring stable market conditions possibly at our own expense," it stated. "Entrepreneurship inherently involves risks and potential failures so open communication transparency accountability are invaluable qualities for founders We hope founders realize that a good reputation is an important asset for securing future financing."

The founder of ZKX defended against accusations from investors about deception arguing that early notification could potentially harm the protocol.

Related reading: Doubts over suspension operation continue: Is blaming market makers just a carefully planned 'scam'?