Coinbase is definitely going all-in the cryptocurrency game, as it continues to expand its current portfolio. The latest addition, however, has sparked some conversation as to why the exchange has decided to list one of the most experimental coins out there – ZRX, or simple, 0x.
The coin was added on October 16th, across the Coinbase Pro platform, as well as in the regular website Coinbase.com and the mobile application, all available for Coinbase users.
0x is essentially a protocol that allows for decentralized exchange of digital assets all based on the Ethereum network. The ICO for the coin raised $24 million. The companies that backed up the project are nothing but impressive. The list of “supporters” include Polychain Capital, Pantera Capital and some Chinese investors, as well.
Coinbase’s initial strategy was to list the most liquid and “famous” coins, it seems. It began with Bitcoin, Ethereum and Litecoin. Later, it added Bitcoin Cash and it further expands its product line. Some believe that competitors, such as Robinhood, which offers commission-less trading and hundreds of digital coins, have threatened Coinbase position.
The most interesting thing is that 0x cannot compare to the market capitalization of the coins that Coinbase has been listing so far. ZRX is rarely among the top twenty altcoins by market capitalization.
However, since the listing of ZRX, the price has surged around 30%, as seen by the graph from Coinmarketcap.
Will Warren, who is one of the co-founders of 0x commented on the volatile and rather experimental nature of his own product, stating:
“This is probably a good time to remind everyone that 0x is a highly experimental technology that is built on top of another piece of highly experimental technology.”
The other major question is whether 0x is on the radar of regulators. This can have a severe effect on how the coin is traded and how Coinbase manoeuvres with the “financial” scrutiny from regulatory bodies.