Per previous reports from\u00a0NewsBTC<\/a>, 0x (ZRX), the native asset of the decentralized exchange protocol project that shares its name, was unexpectedly added to Coinbase\u2019s professional trading platform on October 11. At the time, however, it wasn\u2019t made clear when the world-renowned crypto platform intended to launch ZRX support on Coinbase Consumer (Coinbase.com), which is where a majority of the startup\u2019s 25 million clients trade and transact.<\/p>\n Eventually, after days of\u00a0deliberation, the exchange revealed that it had officially launched ZRX on its consumer-focused webpage, along with on the Coinbase IOS and Android mobile apps that were likely gathering dust due to the bearish market conditions.\u00a0Like any other crypto asset listed on the multinational platform, users are now able to buy, sell, send, receive, or store ZRX, which is now the first Ethereum-based token to go live on Coinbase.<\/p>\n Interestingly enough, for now, users who reside in the\u00a0United Kingdom\u00a0or the state of New York will be unable to trade this specific crypto asset. This restriction can presumably be chalked up to the unknown regulatory climate surrounding ZRX, which has yet to be directly addressed by regulatory bodies.<\/p>\n Still, in a testament to the colloquially-dubbed \u201cCoinbase Effect,\u201d the popular altcoin saw a monumental surge to the upside, rising from $0.65 to a high of $1.04 on the back of the Coinbase news alone. However, since hitting multi-month highs at $1.04, the asset has since seen a pullback to $0.88 and is down 10% in the past 24 hours.<\/p>\n Chart Courtesy of TradingView<\/p>\n<\/div>\n Despite the positive news, as is the common theme with Coinbase listees, many began to bring up theories that insider trading and conflicts of interest had catalyzed the addition of 0x. For those who haven\u2019t been kept in the loop, the exchange has long been accused of facilitating conflicts of interest. Take the two following cases as an example. Following the listing of Litecoin on the exchange, former Coinbase engineering head Charlie Lee left his stint at the startup, which lead many of the firm\u2019s critics to a single conclusion. In a recent case, Bitcoin Cash saw a suspicious\u00a0uptick in buying volume in the days preceding its appearance on Coinbase<\/a>, again indicating that something could be amok.<\/p>\n While these conspiracy theories have since been debunked by the startup, which is slated to be valued at $8 billion<\/a>, critics of the platforms still have their doubts.<\/p>\n Kevin Pham, a former institutional banker turned Bitcoinier and Coinbase\u2019s foremost hater, took to his vast social media platform to yell from the rooftops that insider trading was a likely explanation for ZRX\u2019s addition to Coinbase. Backing his inflammatory claim, Pham pointed out that 0x advisor Linda Xie, who used to work at Coinbase, had directly advised Coinbase\u2019s digital asset listing guidelines in the past.<\/p>\n The potential for insider dealing here stinks.<\/p>\n Former Coinbase Employee and current 0x advisor @ljxie<\/a>, advised Coinbase on their digital asset listing guidelines. https:\/\/t.co\/6GsMZdlL7j<\/a><\/p>\n \u2014 Kevin ”Thuggish” Pham (@_Kevin_Pham) October 16, 2018<\/a><\/p><\/blockquote>\n Although no conclusions can be drawn, as this could have been an unfortunate\u00a0coincidence, many have pointed to the handful of connections that can be drawn between 0x\u2019s executives, advisors, or investors and Coinbase\u2019s top brass.<\/p>\n Even if the rumors regarding insider trading are false, as pointed out by many on Twitter, there is still much to criticize the 0x project for. Preston Byrne, a self-proclaimed \u201cblockchain technologists,\u201d explained that there was only an average of 101 addresses that actively transacted 0x, even after Coinbase\u2019s initial announcement. Byrne seemed to be alluding to the fact that Coinbase has only listed well-adopted crypto assets in the past, which makes the ZRX listing\u00a0straight out of left field.<\/p>\n With these numbers, totally mystified as to how 0x got added to Coinbase. 101 daily active addresses\u2026 and that’s *after* the Coinbase announcement. pic.twitter.com\/VmItTlzGla<\/a><\/p>\n \u2014 Preston Byrne (@prestonjbyrne) October 12, 2018<\/a><\/p><\/blockquote>\n Jackson Palmer, the founder of the ever-popular Dogecoin\u00a0memecurrency, rebutted this sentiment by claiming that Coinbase\u2019s acquisition of 0x-based Paradex\u00a0was behind the listing. But, there were still 0x skeptics to poke holes in Palmer\u2019s rebuttal. Udi Wertheimer, a well-followed Bitcoin developer, explained that Paradex doesn\u2019t even actively use the ZRX token, indicating that the asset could have no legitimate use case.<\/p>\n I believe $ZRX<\/a> is the first ERC-20 token (and “utility token”) to be listed on @coinbase<\/a>.<\/p>\n That’s interesting, as I think $ZRX<\/a> is the first token listed there whose reason for existence no one can seem to explain.<\/p>\n Even Coinbase-owned @ParadexIO<\/a> which is 0x-based doesn’t use $ZRX<\/a> pic.twitter.com\/eMrmQXkqvK<\/a><\/p>\n \u2014 Udi Wertheimer At the time of press, Coinbase has yet to respond to the\u00a0criticism,\u00a0but if these rumors continue to gain traction on social media channels, it is likely that the startup will\u00a0issue a status update on the situation in due time.<\/p>\n <\/p>\n The post 0x (ZRX) Falls 15% After Initial Coinbase Surge, Not All Investors are Convinced<\/a> appeared first on NewsBTC<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"![\"\"](\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2018\/10\/ZRXOctoberNB.jpg\")
<\/p>\n0x Skeptics Lash Out: Insider Trading, Useless Token?<\/strong><\/h2>\n
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[#reckless] (@udiWertheimer) October 16, 2018<\/a><\/p><\/blockquote>\nFeatured Image from Shutterstock<\/pre>\n