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Hype Asset of the Day | May 4, 2022


Launched in 2017, 0x (ZRX) is an innovative crypto project that aims to shake up how tokenized assets are exchanged. 0x has developed a decentralized exchange (DEX) protocol that provides the infrastructure for exchanges and marketplaces making the development of such platforms far easier than previous. 0x’s protocol uses a peer-to-peer system, removing the need for an exchange to have massive on-hand liquidity to fulfill transactions. Over the past day mentions of 0x have been up by 366.67% prompting people to wonder if 0x is a good investment. ZRX is currently trading for $0.74, down around 8% YTD.

Is 0x a Good Investment - Positives

There’s a lot of hype surrounding 0x right now and for good reason! Here are a few of the main arguments why it might be a good time to invest in 0x.

  • 0x Labs managed to raise an impressive $70 million through a round of funding, even receiving investment from prominent figures including OpenSea, Pantera Capital, Jump Crypto, and A-list actor Jared Leto.

  • Recently, Coinbase partnered with 0x, using the platform to power the new Coinbase NFT marketplace. This led to the ZRX token climbing by over 60%, although much of this growth has now retraced.

  • 0x Labs is expecting a sharp increase in demand for its services following its partnership with Coinbase. As 0x is far more gas-efficient than most other cryptos, which could be enough to prompt mass adoption.

  • As 0x provides marketplace/exchange infrastructure, it makes developing projects like DEXs and NFT marketplaces far easier and faster for developers, giving them more time to focus on adding utility.

  • Currently, Coinbase’s NFT marketplace is only in beta, however, with more than 2.1 million users on the waitlist, it certainly has the potential to eclipse OpenSea’s 490,000ish monthly users. If this happens, it’s likely 0x will go parabolic as its use case is proven.

Is 0x a Good Investment - Negatives

Weighing the negatives against the positives is a crucial part of the investing process. To make it easier for our readers, we’ve included a couple of the main reasons why it might be better to hold off on adding 0x to your portfolio

  • Because the Coinbase NFT marketplace is only in beta, it’s only got a fraction of OpenSea’s volume. While this is to be expected, it means we don’t yet know how 0x’s protocol will hold up under significantly increased load. If it fares poorly, then chances are the ZRX token will crash sharply.

  • After the news of the Coinbase NFT marketplace using 0x broke, the ZRX token increased in value by over 60%. While most of this growth has since retraced, it’s still trading higher than its previous average, meaning it might be advisable to wait for the hype to die down a bit before investing.

Hype Asset of the Day - Conclusion

All in all 0x has been having a great week with demand skyrocketing. As the Coinbase NFT marketplace gets fully released, it’s likely that the ZRX token will increase in value significantly. However, something goes awry during the launch, particularly volume-related technical issues, we could see some heavy volatility. Overall, it’s not a bad time to begin building a ZRX position but dollar-cost averaging is highly recommended. If you want to receive more updates on hyped stocks, direct to your inbox, check out our premium plans. Or to learn more about the services offered by HypeIndex, head over to our FAQ page.

HypeIndex is an AI platform that detects Hype in stocks and cryptos before it moves the market, providing reliable early detection for profitable investment opportunities.

The algorithm for our proprietary HypeIndex score is based on sentiment analysis, data science and machine learning.

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