Understanding ZRX: A Complete Guide

Zebpay
4 min readOct 16, 2023

Ethereum has opened up a wide range of applications, including decentralized finance and gaming, thanks to its blockchain technology. One unique application built on the Ethereum blockchain is the 0x platform, which is powered by its token called ZRX. The 0x platform is an open-source platform that allows users to create crypto assets representing physical assets, securities, or other crypto assets. It utilizes the Ethereum blockchain for management and token distribution.

History of 0x

The 0x protocol and the ZRX coin were founded in 2016 by Will Warren and Amir Bandeali. Will Warren, a computer scientist with a PhD in mechanical engineering, and Amir Bandeali, a former trader, created the 0x protocol and ZRX coin.

Initial Coin Offering of ZRX Coin

ZRX coins serve as governance and incentive tokens for users who maintain order books on the 0x platform. The total supply of ZRX coins is 1 billion, with around 85% of the tokens currently in circulation. The initial coin offering (ICO) of the ZRX token took place in 2017, raising approximately $27 million. About 50% of the supply was sold to the public during the ICO, which was conducted on the Ethereum blockchain. The price of the ZRX coin was set at 1 ETH = 2800 ZRX tokens, with a minimum contribution of 0.1 ETH required to participate.

How Does 0x Work?

The 0x software enables users to create custom crypto assets and trade tokens hosted on the Ethereum blockchain. This facilitates peer-to-peer exchange without the need for intermediaries. There are four key aspects to understanding how 0x works:

1. Relayers: Decentralized marketplaces known as relayers connect buyers and sellers on the 0x platform. They host order books and broadcast them to the network. Anyone can run a relayer, and there are multiple options available with different features.

2. Orders: Market makers, who provide liquidity, create orders by specifying the price, expiration date, and amount of the trade.

3. Smart Contracts: 0x utilizes smart contracts to enable secure settlements between buyers and sellers on the platform. These contracts hold the tokens until the trade is completed and ensure secure token transfers between parties.

4. ZRX Tokens: ZRX tokens incentivize market makers to provide liquidity and also serve as governance tokens within the 0x platform.

Factors Influencing ZRX Coin Price

The price of the ZRX coin is influenced by several factors. Some are specific to the 0x protocol, such as adoption and liquidity on the network, while others apply to all crypto tokens, including market sentiment, regulatory developments, and competition from decentralized exchanges.

How to Buy ZRX on ZebPay?

To trade ZRX on ZebPay, follow these steps:

1. Deposit fiat currency into your ZebPay wallet.

2. Open the Quick Trade panel and search for the ZRX token.

3. Enter the amount of fiat you wish to invest.

4. Review the order details and place the order.

Future Outlook of ZRX Coin

The ZRX token has received positive community ratings in terms of its roadmap, community, and usefulness. It aims to create crypto assets without relying on intermediaries, allowing users to trade digital representations of physical assets. While ZRX has shown significant gains, investors should consider various factors and seek advice before buying or selling.

Challenges Facing ZRX Coin

Like other crypto tokens, ZRX faces challenges such as the adoption of the 0x protocol and regulatory changes. Liquidity risks and security risks are also common challenges for decentralized platforms. However, the crypto community actively works to address these challenges and safeguard asset security and investor sentiment.

Conclusion

The 0x protocol and ZRX coin offer a unique opportunity to create new assets and trade ERC-20 tokens. It enhances user interaction with the Ethereum network and provides a playground for enthusiasts interested in experimenting with economics and fungible tokens. Investors should carefully evaluate the pros and cons before making investment decisions.

For more information on crypto, visit ZebPay blogs and share them with like-minded individuals who are enthusiastic about crypto. Join the millions of traders using ZebPay.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Each investor must do his/her own research or seek independent advice if necessary before initiating any transactions in crypto products and NFTs. The views, thoughts, and opinions expressed in the article belong solely to the author, and not to ZebPay or the author’s employer or other groups or individuals. ZebPay shall not be held liable for any acts or omissions, or losses incurred by the investors. ZebPay has not received any compensation in cash or kind for the above article and the article is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.

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