0x

The 0x is an open-source, low friction trading protocol allowing stakeholders to securely upgrade its platform without disruption to markets.

What is 0x?

  • Introduced in August 2017, 0x is a decentralised protocol that uses the Ethereum blockchain and powers to facilitate the peer-to-peer (P2P) exchange of Ethereum-based assets that ZRX, the digital token running on. 
  • In 2017, ZRX was initially used to vote on 0x Improvement Proposals (ZEIPS) and to pay trading fees for transfers using the protocol. In 2019, the 0x project added staking capability for market makers to receive its native tokens as a liquidity reward. In 2020, the project launched a DEX liquidity aggregator service known as Matcha and the 0x protocol was introduced with a new hybrid architecture to ZRX price.
  • ZRX token has a fixed amount of 1 billion for the total supply for over 4 years, whereas the 0x protocol development has significantly driven ZRX price up since 2017. 
  • ZRX is not a mineable coin as its platform is based on a proof-of-work (PoW) mechanism. 

Key Metrics

TickerZRX
Token Name0x
Token Type/ProtocolEthereum/0x      
Total Token Supply1,000,000,000
Current Circulating Supply See Coinmarketcap
Market CapitalisationSee Coinmarketcap
Token Creation DateAugust 2017
Can it be mined?No

Who is behind 0x?

Founded in October 2016 by Will Warren and Amir Badeali, 0x is an Ethereum-based, open standard protocol that allows for a trustless, decentralised exchange (DEX) of any Ethereum assets, including both fungible ERC-20 tokens and non-fungible ERC-723 tokens. Previously, the two founders’ vision was a world where all forms of value, from fiat currencies and stocks to digital gaming items, could be tokens on the Ethereum blockchain. However, they were aware of this large usability gap, turning their project into the new flexible and gas-efficient DEX protocol as ‘off-chain relay on-chain settlement’ instead. Now, the 0x seeks to build the most efficient, transparent, equitable financial system with a mission to create a tokenized world where all values can flow freely. 

What is the purpose of 0x?

0x has its own native tokens for two-fold purposes. While users are not required to pay fees on the 0x platform, its tokens are paid as transaction fees for the relay services to connect makers with takers. More importantly, the ZRX token is used for a smooth upgrade mechanism by enabling its holders to decide on how the binding on-chain governance should be developed over time. This participation in decision-making can also serve as an incentive for users to acquire more 0x tokens that give more influence on the voting outcomes.

Insights: 

Price history & prediction

  • In 2017, 0x raised $24 million into an initial coin offering (ICO) for its tokens from a group of 12,000 prominent supporters. Their backers included venture capital firms from Ploychain Capital, Blockchain Capital, Patera Capital, and Chinese investment firms Jen Advisors and FBG Capital. This large investment round was in exchange for a 30% discount on its future tokens, making 0x more attractive to users. 
  • In August 2017, the ZRX price started at $0.18 and then became volatile the following year. Until 2019, it was more stable, moving between $0.15 and $0.30. 
  • In late 2020, the excitement and rapid growth of decentralised finance (DeFI) that uses smart contracts on Ethereum blockchain significantly increased the prices of crypto currencies such as ETH and 0x.
  • 750 millions of ZRX tokens are in circulation and 75% of the maximum one-billion supply is available as of October 2020. This indicates that ZRX achieved the dilution in early 2020.
  • ZRX was the 67th largest cryptocurrency by value after it had a market capitalization of $906 Million on February 28, 2021. 
  • According to Wallet Investor’s online forecasting service, the 0x price will remain bullish into 2021 although it has fallen by 50% from the high of $2.50. It will rise further by the end of 2025.

Risks:

  • Although the future of ZRX price is quite positive, investing in ICOs is highly speculative due to no regulatory protection
  • It is exceptionally risky for a single firm to purchase ZRX tokens and make them increase the liquidity pool for market makers.
  • Compared to other coins like Bitcoins and Ripple, ZRX might not be the best investment due to 0x protocol’s instability – it must have a stronger financial interest in the future for liquidity providers and require formal approval from ZRX holders by voting on a major change. 

News and Updates: 

  • 0x released a Polygon version API for its DEX liquidity aggregator.
  • As ZRX price surges, 0x announced initial plans to decentralise its governance by creating a community-owned treasury managed by the DAO. 

Community & Whitepaper Links:

Disclaimer

All investment is speculative and involves substantial risk and uncertainty. Investors should understand the nature of digital assets including the terms of return and the risk of assets. We encourage investors to fully understand the assets and the risk associated with them prior to making any investment.

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