0x Project (ZRX) Review

An independent analysis on 0x Project(ZRX)

An open standard exchange protocol for ERC20

0x is a startup seeking to create and deploy a new, secure, ‘trustless' and ‘feeless’ exchange for Ethereum ERC20 contracts and tokens.

Currently, there are two types of exchanges in the market with differing problems:

1)  Centralized  Exchanges  such  as  Poloniex,  Coinbase  and GDAX which are susceptible to security flaws, traffic spikes, and significant fees; and

2)  Decentralized  Exchanges  such  as  EtherDelta  or  Maker Market which are slow due to everything being stored entirely on the blockchain

The 0x project aims to deploy a platform agnostic ‘hybrid’ of both exchange processes; using off chain order relay combined with on-chain settlement to create a new and efficient standard in the market.

Tokens for Investors

ZRX tokens may provide the following benefits to investors:

1)ZRX allows holders to vote on changes to the 0x protocol as a method of decentralized governance

2)holders of the token can earn relaying fees from the protocol

3)appreciation  of  the  ZRX  free-floating  token  price  due  to ongoing fees collected by the protocol

Commercial Strategy & Roadmap

The 0x Project is already in Alpha with evidence of significant technical  development  to  date.  You  can  view  the  over-the- counter  network  by  clicking  here.  There  are  some  tokens already listed and the ability for some to be manually added.

Moving forward, the aspirations of the 0x project are quite large and  focus  on  practical  solutions  to  solve  some  major inefficiencies that currently exist.

The ‘hybrid approach’ of incorporating and improving features from the centralized and the decentralized worlds would create a  much  faster  and  robust  process  for  ERC20  transactions moving forward.

From a commercial point of view, the choice to create 0x as a platform agnostic protocol means its applications and adoption in the market could very well be limitless.

Management

The  management  team  and  the  operational  team  appear  to have extensive experience in both technology and development. Some of the personnel (including advisors) have a rich history in exchanges and trading of other markets.

Conclusion

The 0x Project presents a speculative buying opportunity for investors.

To date, we are unable to find any red flags associated with the ICO and are pleased with the structure that is currently being offering to investors.

In brief, we are highly satisfied with the following:

1)the  current  development  which  has  taken  place  by  the team and the future roadmap

2)the  commercial  model  is  low  cost  and  has  the  ability  to

penetrate a large portion of the market

3)the  capital  structure  of  the  offer  is  good  with  a  hard  cap being applied

4)the  team  and  advisors  are  subject  to  a  sufficient  vesting

period for tokens being withheld

5)the team and advisors have an extensive track record

In  conclusion,  the  ICO  of  the  0x  Project  appears  to  be  a genuine use case and backed by a team who have the ability to successfully execute the vision promptly.

We, therefore, recommend a Buy of the 0x Project ICO for investors  seeking  either  a  short  term  speculative  trading opportunity or a longer term capital gain.