0x Surges 30% on the “Coinbase Effect”

0x coinbase

0x has surged 30% after the token officially started trading on the Coinbase exchange.

The move had started last week with rumours of an addition for 0x and I noted in a previous article how Coinbase users had spotted  ZRX listed in the  reporting section of the Coinbase platform. This was followed by the initial rally to the $0.75 level. I noted then that, “Key resistance for ZRX will be around the $1.25 level.”

The price has blasted through the $1.00 level today but has since retreated to $0.98. There is potential for a follow-through rally and above $1.25 we have resistance at $1.75 and $2.25. Above the $2 level there is little resistance to stop a bull run in 0x. Today’s move will have been powered by large investors on the Coinbase exchange who wanted to diversify into ZRX and its $500 million market cap. The move on the “Coinbase effect” has propelled 0x to number 22 in the rankings, only $60 million short of ZEC in twentieth place.

It should also be noted that when Coinbase were “exploring” the option of another coin it considered Stellar Lumens (XLM), Basic Attention Token (BAT), Cardano (ADA) and ZCash (ZEC). Traders should keep an eye on the reporting section aagain as Coinbase may follow up with another of those coins more quickly than they have done previously. The last coin added to Coinbase was Ethereum Classic in July, however the company has faced calls from users to add more coins and there is also growing competition in the exchange market so the company will not want to be left behind, especially after the company received further investment of $500 million from Tiger Global, in a deal that saw Coinbase valued at $8 billion.

 

0x Blasts Higher on Coinbase Listing Rumour

0x coin

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.