Is 0x (ZRX) A Good Investment?

tl;dr0x is a decentralized exchange protocol that developers can use to build their own cryptocurrency exchanges. The company’s founder refers to his solution as the “Craigslist for cryptocurrencies” in that any developer can build their own cryptocurrency exchange and post it online. 0x uses common smart contracts over a shared infrastructure. Its technology combines two strategies – State channels and Automated Market Marker (AMM) - that have already been suggested to overcome these problems.
Is 0x (ZRX) A Good Investment?
Is 0x (ZRX) A Good Investment?
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Introduction

0x is a decentralized exchange protocol that developers can use to build their own cryptocurrency exchanges. The company’s founder refers to his solution as the “Craigslist for cryptocurrencies” in that any developer can build their own cryptocurrency exchange and post it online. 0x uses common smart contracts over a shared infrastructure. Its technology combines two strategies – State channels and Automated Market Marker (AMM) - that have already been suggested to overcome these problems. State channels take transactions offline, thereby reducing costs that are incurred if the transactions take place on Ethereum’s network. AMMs introduce a third party to facilitate trades if the price of a crypto asset reaches a certain threshold. Thus, AMM conducts trades between the two parties (instead of the parties conducted it between themselves) and also acts as a counterparty. 0x founders describe their system as an “off-chain order relay with the on-chain settlement”. “Cryptographically-signed orders are broadcast off of the blockchain, an interested counterparty may inject one or more of these orders into a smart contract to execute trades relentlessly,” the whitepaper’s authors write. The protocol’s innovation lies in relayers, which are used to connect makers with takers. Its token – ZRW – is used to pay fees for use of the relayers. 

How does 0x work?

The 0x network revolves around the maker and taker. Maker is the party that creates a buy or sell order while taker is the party that fills the order. Currently, 0x supports trading for ERC-20 fungible tokens.  

0x allows order makers to securely initiate a transaction with digital signatures and an 0x order is only considered valid after it has met all of the steps shown in the image below.

In order for a trade to occur, there needs to be someone on the other side of the trade. If the maker already has the desired counter-party, they could directly send the 0x order to them. Otherwise, the order will be sent to a relayer in hopes of finding a counter-party.  

A relayer is an entity that helps to create, find, and fill 0x orders. Anyone can build a 0x relayer and begin earning fees for every trade it facilitates

Once someone finds and fills the 0x order, the 0x protocol’s settlement logic will verify the maker’s digital signature and make sure the conditions of the trade are completely met. If everything is in order, tokens will be automatically swapped between maker and taker. Otherwise, the request will be rejected. 

Because 0x supports ERC-721 non-fungible tokens (NFT) as well, there could be a viable use case for gaming or digital artwork scenarios. Gamers can tokenize their in-game assets and trade among themselves. Artists can also digitize their artwork into an NFT and turn it into a trading product. 

Financial Analysis:

0x price today is $0.965875 with a 24-hour trading volume of $77,265,208. ZRX price is down -3.1% in the last 24 hours. It has a circulating supply of 850 Million ZRX coins and a total supply of 1 Billion. At the time of writing this post (Oct 18, 2021), ZRX 's Return On Investment (ROI) over the past year was 152%, underperformed in 'Decentralized Exchange Token (DEX), Polygon Ecosystem, Protocol, Polkadot Ecosystem, Decentralized Finance (DeFi), Governance' categories which had 323% growth over the past year. It's underperformed in the crypto market which had 13418% growth over the past year.

Projects with public Github account have more transparency and reliability. Regularly, investing in projects with multiple contributors and commits is considered a safer and better investment (this means they are busy working and building the project). According to its Github account, there are 77 Contributors to the development of ZRX.

Another critical factor in the success of any project is gaining public attention. Our data shows that ZRX 's Twitter account saw a growth of 9% over the last months in the number of followers, which is considerable. Also, the number of ZRX Reddit subscribers increased by 6%. However, the Telegram channel users had an 18% growth over the last months.

Over the last five months, ZRX 's Market Capitalization rank followed an overall declining trend, starting at the rank of 99-108 on July-Aug 2021, reaching 119 in Oct 2021. However, by the time of writing this post, ZRX 's market cap rank is about 120, and its value is $1,232,682,219 Billion. Moreover, its liquidity score is 58% above the market's average score, making it relatively easier to sell in bear markets.

You are saying that 0x (ZRX) is the best cryptocurrency to invest in?

We are here to help you make smarter financial decisions by freeing up your intelligence through making it easy to compare thousands of coins. We do all the hard work for you and help you remove emotions from your decisions. However, making an investment decision requires considering your own financial situation and comparing your investment options.

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