0x has blasted higher as rumours of an imminent Coinbase listing appeared to be confirmed. Posting screenshots on a Medium article, users spotted that the ZRX coin had been added to the reporting section of the Coinbase platform.
ZRX was 16% higher on Monday as investors digested the news and anticipated a surge in volume through the addition to one of the largest and mainstream cryptocurrency exchanges.
The 0x protocol seeks to facilitate the the trading of any type of asset and have been prominent in gaming and prediction markets. In a Medium post in June, the project’s co-founder Will Warren stated their ambition to tokenize financial assets saying,
We envision a world in which all forms of value are tokenized on public blockchains. This includes fiat currencies, stocks, bonds, commodities, debt instruments, real estate, video game items, digital collectibles, software licenses, reputation and much more. …we can build a global financial system that is more efficient, transparent, and equitable than any system that has existed in the past.
ZRX has moved 50% higher from the September lows and is testing resistance near $0.80. Key resistance for ZRX will be around the $1.25 level.
ZRX may continue higher, however this rally highlights the short memory that traders often display. Despite an inital rally, Ethereum Classic (ETC) is 38% lower from its own Coinbase listing announcement in July, however we can give 0x the benefit of the doubt this time as the Ethereum blockchain has been under continued pressure with project’s like Tron surpassing Ethereum’s performance.
Tron’s TRX is up 15% in the last 24 hours as the project’s founder confirmed the release of a new upgrade.
Tron’s CEO Justin Sun took to Twitter to announce that the network will upgrade to Odyssey 3.1 and that the Tron Committee function and the Tron Virtual Machine (TVM) will go live, “marking the start of the smart contract era”.
Sun confirmed that the upgrade will make Tron 200x faster than Ethereum and 100x cheaper than EOS.
In an interview with Investopedia, Tron’s founder also confirmed that he saw the financial industry moving to adopt the blockchain and that they plan to enter that space in the future.
Commenting on the smart contract issue, Sun said:
The TVM is fully compatible with Ethereum’s EVM. Additionally, it costs a fraction of one TRX to support smart contracts on the TVM and to create TRON accounts. Because the cost is so minuscule, we say “almost free”. By comparison, creating and supporting contracts on Ethereum and EOS can cost a user more than $10.
The price of TRX moved to test previous resistance near the $0.28 level. If we see a move higher, the next targets will be $0.40 and $0.80.
EOS has shrugged off allegations of corruption in its blockchain governance and the coin may rally soon.
The concerns over the EOS governance was related to claims that some block producers (BPs) were voting to keep each other on the network in return for rewards. Block.one released a statement which did not confirm or deny any wrongdoing but were keen to state that they take governance seriously,
“We believe it is important to ensure a free and democratic election process within EOS and may, as we deem appropriate, vote with other holders to reinforce the integrity of this process.”
They added, “we extensively think about the future of decentralized governance and are committed to continually pushing thought leadership on optimal design.”
Despite the fuss, EOS has shrugged off the issue and the coin may soon mount a rally.
The price of EOS has bounced from the support at the April lows creating a potential double bottom. The blue line is monthly support and the coin may soon rally to test the resistance around the $8.00 level.
Crypto and fintech startup Circle are moving to acquire the crowdfunding firm Seedinvest with a view to tokenzing startups. Bloomberg reported on the move, which is the latest in a very aggressive few weeks for Circle where they have built up their retail product offerings, strengthened their Poloniex exchange and added a new stablecoin.
Circle CEO Jeremy Allaire commented on the tie-up:
“This was a company who had been at the forefront of collaborating with government to figure out how to make it possible to innovate in the way people raise capital. Crypto securities are going to become a major new category of securities that ultimately every business is going to adopt, just like every business has a website.”
The move into this market could see Initial Public Offerings (IPOs) almost disappear from the financial landscape.
Allaire was bullish on the future of tokenization, stating,
“It’s not just ‘how do we let companies do ICOs? It’s ‘how do we support the tokenization of everything?”
Bloomberg has reported that institutions are using a back door for cryptocurrency purchases and states that these investors may be more prominent than previously expected.
The report highlights that firms such as Hedge Funds have replaced large private investors for purchases of over $100,000. Circle, the Goldman Sachs-backed startup has also seen a rise in “over-the-counter” trades (OTC), with the company’s CEO Jeremy Allaire stating, “We’ve seen triple-digit growth enrolling in our OTC business… That’s a big growth area.”
The Bloomberg report added that, “Large buyers and sellers like private sales because transactions on exchanges can move coin prices. In a private sale, parties can fix the price in advance, instead of worrying about a sudden plunge or spike just as the transaction takes place.”
The key takeaway from this article is that smart investors are piling into cryptocurrencies and are doing so through private sales, in order to avoid volatility on the exchanges. The arrival of intermediaries to help instituions find suitable blocks of coins shows an imbalance between supply and demand and thus far this has not translated to price rallies. It may need regulation or a retail wave before we see big changes in price, however the arrival of the “smart money” hints that this development may be just around the corner.
Circle, a crypto and fintech startup funded by Goldman Sachs and Baidu has continued to build on its rapid development with another new product: “collections”.
Collections is another addition to the Circle trading portfolio which seeks to bring cryptocurrency trading to the masses. The feature allows investors to gain access to an investment theme: payments, privacy or platforms. This type of investment makes it suitable for investors who want to gain access to the space without doing the due dilligence and research. The feature is very retail-friendly, similar to the company’s “buy the market” feature, where investors can buy a basket of cryptocurrencies. With Collections, Circle will provide educational material to explain the purpose of the different groups and as crypto evolves, more collections may be added.
These features are similar to the current options available in the tradtional finance market, where investors can buy a theme, such as “emerging markets” or “european banks”. The moves by Circle highlight what I have mentioned in my Medium posts recently: crypto regulation is coming and the insiders are building products for a pending retail wave.