0x (ZRX) On Fire, as Coinbase Adopts ERC-20 Handling
The ZRX token for the 0x decentralized exchange suddenly boomed, possibly due to connections with Coinbase founders.
The 0x (ZRX) digital asset bounced off the recent lows following the news that Coinbase is adding custody of ERC-20 tokens. Some ascribe the enthusiasm for the token to a potential listing on GDAX, possibly also Coinbase:
In March, even after the recent recovery, ZRX is far from its peak prices above $2, and has lost more than half its value compared to the peak BTC-denominated prices.
Despite the encouraging sign, this recovery looks quite slim in perspective, as volumes are yet to show a steady inflow. In the past, other assets have risen at the smallest hint of a connection to Coinbase. But this time, adding new coins to the small portfolio is highly uncertain.
It must be noted that an addition to Coinbase has worked well for some assets, such as Litecoin (LTC). In that case, the position of Charlie Lee as former director of technology on Coinbase may have swayed the decision to add the asset. This led to a rapid appreciation of LTC since the summer of 2017. But so far, no other asset, including Bitcoin Cash (BCH) has repeated the feat, and Coinbase remains an option only in speculation.
At the end of last year, the exchange service stated it would add new assets, but so far has been very conservative about expanding its portfolio. This may mean that the hype for ZRX may be very short-lived.
Toward the end of march, tokens continue to be shaky, and Ethereum itself has been sliding, down to around $460 on selling pressures and lowered volumes.
Tokens Trading on 0x
The 0x project is already operating the ercdex.com decentralized exchange, allowing users to trade tokens in a trustless, decentralized way through their Metamask wallet.
The exchange still has a relatively limited selection of tokens, leaving out many recent ICOs, as well as older ones. But decentralized exchanges are trying to make their way as a viable option to listings, which may require additional fees.
Compared to EtherDelta, the 0x project is striving for better user-friendliness.
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