0x, ZRX

0x is an open protocol for developers who want to launch a decentralized exchange (DEX) or a decentralized application (dApp) with an option of exchanging ERC-standard tokens internally. It operates on smart contracts and the Ethereum blockchain. Thus, exchange creators can provide users a one-level platform for exchanging tokens of standards ERC-20, ERC-721 and others without a need to place orders.

The project aims for creating a tokenized world where all valuables are liquid and there is no need for trust. It should become a basis for integration with other protocols responsible for the interaction of dApps and the exchange function. At this point, 0x interconnects liquidity providers with market makers to simplify the exchange through popular services (DeversiFi, ParaDex, Radar, etc.). However, the team has already created new products with it:

1. 0x API — liquidity-aggregating interface of various DEX.
2. 0x Mesh — a service that provides access to a global peer-to-peer order book.
3. 0x Instant — an instrument for adding a function of accepting/exchanging tokens in dApp.
4. Matcha — a search engine across liquidity and markets.

0x startup history

Establishment: October 2016, San Francisco, CA (USA).
Founders: Will Warren and Amir Bandeali.
Previous experience: Mr Warren was involved in researches in Los Alamos National Laboratory (2013–2016), worked part-time as a technical adviser in the Basic Attention Token project (2017); Mr Bandeali was a trader in Chopper Trading (2012–2015) and DRW (2015–2016).

Advisers: Olaf Carlson-Wee, Fred Ehrsam, Joey Krug, David Sacks, Linda Xie.

First company: ZeroEx, Inc.; 2016, San Francisco (USA).
Second company: ZeroEx, Intl.; 2016, George Town (Cayman Islands).
Executives: Will Warren is CEO, Amir Bandeali is CTO.

Public launch: May 2017.

Investment in the startup

1. April 2017: $775 thousand during a presale by a SAFT.
2. August 2017: $24 million during a token sale.
3. February 2021: $15 million during round A of the venture capital financing.

0x cryptocurrency attributes

The use of the protocol is free. Future DEX owners can establish their desired commission levels, and they do not have to share them with the 0x team. Also, in contrast to the usual DEX based on Ethereum, this protocol allows placing and cancelling orders without any gas expenses.

The protocol is supported by ZRX token. Its functions:

• Governance. Holders have a right to participate in voting that is held to discuss changes in the protocol operation. A mechanism developed by the 0x team reduces the likelihood of branching from the project and also increases the concurrence level amongst its participants. All these factors contribute to implementing quality updates into the protocol.
• Delegating a stake. Holders can transfer tokens to a market maker or a market pool to get a passive reward while preserving their right to vote.
• Retranslation payment. Retranslators are used to place over-the-counter orders and to create engines to comply with orders of sellers and buyers who want to trade tokens of the ERC-20 standard.

Retranslation is paid by a market maker who will use the described service. Developers created this mechanism to reduce users’ expenses and increase the value of the issued cryptocurrency. The latter depends on the number of cryptocurrency transactions via the 0x protocol: the more of them, the higher the price of ZRX token.

0x (ZRX) is a token of Ethereum’s ERC-20 standard. Its main functions are managing the protocol, delegating stakes, and paying for retranslation.

0x token sale and ZRX distribution

0x’s crowdsale took part on 15 and 16 August 2017. It is considered a token sale and not ICO because developers haven’t planned on creating their blockchain with coins. The team issued 1 billion ZRX, which was the issuance limit, and distributed them the following way:

Investors bought all tokens in one day for the exchange rate of 0.000169 ETH for 1 ZRX. The team raised 84,500 ETH, or $24,000,000 in fiat money. If one divides this sum into a half-billion sold tokens, the assigned cost of ZRX will equal $0.0480.

0x price dynamics

The token was listed on exchanges on 16 August 2017 at 0.2244 USD. Its price doubled in three days, then went through corrections and in a month — in a long-term flat. On 2 November the token set its year’s low at 0.1708 USD. The presale participants that held onto ZRX until 25 December had a chance to sell them for 0.6964 USD — this was a high of 2017.

OHLC prices of 2018:

• open — 0.8777 USD;
• all-time high — 2.37 USD (13 January);
• low — 0.2654 USD (16 December);
• close — 0.3218 USD.

OHLC prices of 2019:

• open — 0.3174 USD;
• high — 0.3766 USD (2 April);
• low — 0.1537 USD (29 August);
• close — 0.1894 USD.

ZRX price change in 2020

Let’s list only uptrends and downtrends with price extremes and highs and lows that are noticeable on the 2020 0x chart:

1. 📈 Rise from 2 January to 14 February: 0.1762 USD ⤴ 0.3453 USD.
2. 📉 Fall from 6 to 16 March: 0.2825 USD ⤵ 0.1376 USD — an all-time low.
3. 📈 Rise from 25 April to 10 May: 0.1856 USD ⤴ 0.4265 USD.
4. 📉 Fall from 11 to 25 May: 0.3971 USD ⤵ 0.3028 USD.
5. 📈 Rise from 3 to 9 July: 0.3440 USD ⤴ 0.4480 USD.
6. 📈 Rise from 8 to 23 August: 0.3928 USD ⤴ 0.7326 USD — a high of the year.
7. 📉 Fall from 25 August to 24 September: 0.7314 USD ⤵ 0.3413 USD.
8. 📈 Rise from 16 to 25 November: 0.3421 USD ⤴ 0.4663 USD.
9. 📉 Fall from 3 to 24 December: 0.4265 USD ⤵ 0.3077 USD.

0x predictions for 2021 and prospects

0x operates on Ethereum, so there is no wonder that the ZRX token has always correlated with the ETH coin. Their close bond is visible on the chart for 2020. In dynamics, the ZRX price even drastically advanced ETH twice: sharp and large increase from 25 April to 6 May for 129.8%; increase from 8 to 23 August for 86.5%. During both these periods, ETH price stayed flat.

Now in February 2021, when the crypto market entered a new growth phase, the token again outmatched ether in its increase. From 1 to 11 February, ZRX gained 127.1% in price, while ETH rose by 39.5%.

0x roadmap

The project doesn’t have a roadmap yet in the form of a typical chronological time scale. However, there is a tag 0xroadmap in a blog. The team uses it to mark posts with passed milestones: https://blog.0xproject.com/tagged/0xroadmap . They could be used to analyse what events had an impact on the 0x price and what you should expect next.