0x

The history of 0x (ZRX) began in 2016 when Will Warren and Amir Bandeali started developing the project. On February 22, 2017, they released a white paper outlining the protocol's goals and functionality. The project conducted an initial coin offering (ICO) on August 15, 2017, selling half of the total supply of ZRX tokens (500 million) in just over 24 hours, raising $24 million.

In April 2018, David Sacks, former COO of PayPal, joined 0x's advisory board. On October 11, 2018, ZRX became the first Ethereum ERC-20 token to begin trading on the US-based cryptocurrency exchange Coinbase.

In 2020, the 0x ecosystem saw significant growth, and in 2021, Bitwise included the ZRX token in its DeFi Crypto Index Fund. The project continued to evolve, with the formation of 0x Labs in 2020, marking a transition towards decentralizing control of the protocol.

0x (ZRX) is a decentralized protocol that enables the peer-to-peer exchange of Ethereum-based assets. It operates on the Ethereum blockchain and allows users to trade tokens directly through smart contracts, eliminating the need for a central intermediary like an exchange. Here's how it works:

1. Smart Contracts: 0x uses audited smart contracts that operate on the Ethereum blockchain. These contracts handle transactions between buyers and sellers, ensuring secure and efficient transactions.

2. Off-Chain Layer: The off-chain layer consists of Relayers, which act as intermediaries between buyers and sellers. Relayers allow users to place and execute trade orders without directly placing them on the blockchain, reducing transaction costs and increasing speed.

3. On-Chain Layer: The on-chain layer consists of smart contracts executed on the Ethereum blockchain. These contracts ensure that transactions are handled securely and efficiently, and users' assets are safely stored.

1. Makers and Takers: There are two primary sides to the 0x ecosystem: Makers and Takers. Makers provide the supply side of the market by creating orders, while Takers fulfill these orders.

2. Order Placement: Makers create orders specifying the tokens they wish to exchange and the price at which they are willing to exchange them. If the maker knows their desired counterparty, they can send the order directly to them. Otherwise, the order is submitted to a 0x Relayer.

3. Relayers: Relayers act as order books and facilitate transactions between buyers and sellers. They earn from trading fees and can issue their own tokens based on the 0x protocol.

4. Order Execution: When a Taker finds a suitable order, they submit their cryptographic signature to the smart contract, which then executes the trade.

1. Governance: ZRX token holders influence the future of the 0x protocol through decentralized governance. They can submit proposals and vote on crucial decisions.

2. Transaction Fees: ZRX tokens are used to pay transaction fees on the 0x network, although this is not mandatory.

3. Liquidity Stimulation: ZRX tokens can be staked to encourage liquidity providers to add liquidity to decentralized exchanges and markets on the 0x protocol.

1. Interoperability: 0x promotes interoperability between decentralized applications (dApps) to facilitate the adoption of DeFi (decentralized finance).

2. Customizability: The 0x protocol is modular and customizable, enabling developers to easily build their own dApps.

3. Efficiency: 0x aggregates liquidity from over 100 other exchanges to minimize slippage and execute swaps at optimal prices.

4. Security: The use of smart contracts ensures secure and efficient transactions.

The 0x ecosystem comprises various parties working together to create and operate decentralized exchanges on the Ethereum blockchain. This includes developers building on the protocol, users of decentralized exchanges, and investors involved in the project. The goal is to make the trading of digital assets more efficient and accessible to everyone, leveraging the benefits of blockchain technology and decentralization.

0x (ZRX) has several strengths that make it a popular and effective platform for decentralized trading:

1. Peer-to-Peer Exchange: 0x enables direct peer-to-peer exchange of digital assets, eliminating the need for intermediaries and enhancing security and efficiency.

2. Liquidity Aggregation: The protocol aggregates liquidity from various decentralized exchanges (DEXs), providing users with the best available prices and reducing the impact of liquidity fragmentation.

3. Decentralized and Open-Source: 0x is an open-source protocol, ensuring transparency and security through community scrutiny. It operates in a decentralized manner, without a central authority controlling transactions.

4. Low Fees: 0x has minimal fees, as developers only pay gas fees for the network. This is achieved through the integration of an off-chain relay with an on-chain settlement system, which reduces congestion and costs.

5. Governance Token: ZRX serves as a governance token, allowing holders to vote on protocol upgrades and developments, which can drive demand and influence the token's value.

6. Interoperability: 0x promotes interoperability between decentralized applications (dApps), fostering the adoption of decentralized finance (DeFi) and enabling the creation of various dApps.

7. Advanced API: The 0x API provides market-leading prices, achieving 99.9% uptime and a 1.5-second response time. It can be integrated with wallets and DeFi applications to offer exchange functionality.

8. NFT Support: The protocol supports both fungible and non-fungible tokens (NFTs), allowing for the representation of diverse assets, from real estate to digital collectibles.

These strengths contribute to 0x's popularity and its ability to facilitate efficient, secure, and cost-effective trading of digital assets.

0x (ZRX) is considered a high-risk investment due to its volatility. It has a volatility of 11.98, which is significantly higher than the NYSE Composite, making it 19.97 times more volatile. This means that the prices of ZRX can fluctuate greatly, making it a risky investment for those with a short-term horizon.

Additionally, 0x has a Sharpe Ratio of 0.18, indicating that the digital coin had a 0.18% return per unit of risk over the last three months. This suggests that the potential returns may not be justified by the level of risk involved.

The risk gauge rank for ZRX indicates that it is currently a moderate risk investment. This assessment is based on how much money it took to shift its price over the last 24-hour period, along with analysis of recent changes in volume and market cap. The gauge is between 0 and 100, with lower scores equating to higher risk while higher values represent lower risk.

Furthermore, 0x's beta coefficient measures the volatility of the crypto coin compared to the systematic risk of the entire market. This indicates that 0x is highly sensitive to market fluctuations, which can increase its risk profile.

Overall, 0x (ZRX) is considered a high-risk investment due to its volatility and sensitivity to market fluctuations.

• Will Warren: Co-founder of 0x, involved in the development and governance of the platform.
• Amir Bandeali: Co-founder of 0x, instrumental in the project's inception and ongoing development.