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:
Coinbase CEO previously tweeted "0x has done more for ethereum than any ICO"
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.
looks like the market is guessing $ZRX - Coinbase co-founder & two former employees sit on 0x's advisory board, including Olaf Carlson-Wee, who now leads Polychain Capital, which has a large investment in $ZRXpic.twitter.com/CDHvjvr20i
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 used as the platform for 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.
Sneak Peak: 0x Trade Widget! ⌛️1-click instant purchases 👤 No account setup required 🔌 Pull liquidity from open order book relayers 🛠️ Open source and embeddablehttps://t.co/brgz1rnMzW