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0x Project is only the sixth asset ever to list on Coinbase Pro, formerly GDAX. There was a lot of speculation during last week that the listing was going to occur after the 0x Project appeared on the Coinbase tax calculator tool. The announcement was made official on Thursday October 11.

ZRX is launching on Coinbase Pro! The ZRX/USD, ZRX/BTC, and ZRX/EUR order books have entered transfer-only mode. Traders can deposit ZRX, but cannot yet place or fill orders. Order books will remain in transfer-only mode for at least 12 hours. https://t.co/SomOUqoXhv

— Coinbase Pro (@CoinbasePro) October 11, 2018

The assets listed prior to 0x Project included Bitcoin, Ethereum, Ethereum Classic, Bitcoin Cash, and Litecoin.

0x Project was one of the only coins this week to record a strong performance with declines occurring in almost all assets across the market. Known as the Coinbase effect, a listing opens up key capital to flow into the project and has historically had positive impacts on the price of a project. Litecoin moved up 30% upon being listed. 0x Project opened $0.75 on the day of listing and made a high of $0.9. However, the price action ended up being volatile as traders dealt with news of the listing along with the sharp declines which were occurring across the rest of the market.

With 0x Project currently ranked 25th in terms of total market capitalization, why did Coinbase decide to list this project when there are 19 contenders with higher market capitalizations? Let’s take a deeper dive into the project and Coinbase’s decision making when it comes to listing assets.

In November 2017, Coinbase released the GDAX digital asset framework. The framework detailed important considerations that Coinbase takes into account in the decision to list an asset.

There are six main areas considered:

The first point is straightforward in theory but difficult to assess. Coinbases main values are decentralization, innovation, equality of opportunity, and economic freedom. Coinbase lists assets which align with these mission values, but each standalone value is highly debatable for different cryptocurrency projects.

The technology category takes a holistic approach. It assesses not only the code and functions of the project but also the team, governance process, and scalability. This includes assessing a wide variety of factors such as the professional expertise of the team and advisors, the roadmap and proposed plans for the project, and the details of the code among more.

Legal and compliance along with market demand and supply serve to maintain the high quality of the Coinbase pro exchange and protect the business moving forward. These factors ensure there is sufficient liquidity to list the product and make sure that the listing won’t cause any legal trouble down the road.

Crypto economics is another highly debatable point. This point assesses factors such as inflation structure, ownership split, and the use case for the cryptocurrency among more. Crypto economics is a new field, and there is no consensus on a correct way for the economics of a cryptocurrency to be structured. But one thing is clear. If it clearly opposes the Coinbase Pro missions and values, it is unlikely the coin will be listed. There has been much speculation about Ripple’s digital currency XRP being listed. But with a huge amount of the XRP being in the control of the Ripple team, it looks like a clear opposition to Coinbase’s values of equality of opportunity and economic freedom.

Many projects compromise their level of decentralization to tackle some of the limitations of blockchain technology. Decentralized technology takes up more resources lowering the throughput so many projects trade off the level of decentralization to increase the throughput. This immediately goes against one of the values Coinbase takes into consideration when deciding which assets to list.

0x Project keep decentralization as one of their key principles. They envision a future where all kinds of assets are tokenized on public blockchains. Not only are they determined to have assets listed on decentralized protocols but they are also working towards decentralized governance where decision-making is driven by the stakeholders in the project as opposed to a centralized team.

The project provides an infrastructure layer which enables developers to integrate their project so that it can be exchanged and access the liquidity provided by the 0x protocol. Examples of projects which have been built upon 0x protocol include Bitfinex’s decentralized exchange Ethfinex and the decentralized freelance job market Ethlance.

An analysis of the advisors would have provided a hint to some that 0x Project stood a better chance than most at being listed. It includes two former Coinbase hires and a co-founder.

What will the next project listed on Coinbase Pro? Those who can speculate correctly on this capitalize on the Coinbase effect. One thing is clear from the 0x project listing. Picking projects that have the potential to be listed on Coinbase Pro go beyond just choosing the projects with large market caps. It entails a deeper dive into what the project represents and how it aligns with what the values of Coinbase are.

0x Project Sixth Asset to List on Coinbase Pro was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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