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.