The recent listing of 0X [ZRX] on Coinbase exchange, one in foremost renowned global crypto exchanges, has led several to assert that there’s a conflict of interest within the company. Although alternative coins with additional trade volume were overlooked, this is not in itself enough proof of point to indicate any conflict of interest. It’s possible that 0X [ZRX] was easier to integrate into the Coinbase exchange platform, given it’s on the Ethereum blockchain as opposed Cardano [ADA], Stellar [XLM] and zCash [ZEC], that are based on completely different blockchain networks. However, there’s quite enough information for these claims, given the ties between Coinbase, Scalar Capital, along with the 0X project.
Coinbase lists 0X [ZRX]
News Portal ‘The Block’ confirmed the apparent conflict of interests between Coinbase staff along with a firm known as Scalar Capital, that assisted within the public sale of ZRX. The founders of Scalar Capital [Linda Xie and Jordan Clifford] are both former Coinbase employees. Xie is married to the co-founder of the 0x [ZRX] project, Will Warren. 3 out of 5 advisors of 0X were Coinbase staff. To further muddy the waters, an engineering manager at Coinbase [Maksim Stepanenko] created the listing framework at the Coinbase exchange, together with Xie.
There was no real reason to list 0x [ZRX] prior to alternative coins. The coin is commercing outside of the top twenty five and will not attain the status from the SEC as a utility token, given the pre-mine. The questionable nature of the 0x listing prompted bitcoin maximalist John Carvalho to Tweet –
“Hey @coinbase, do your listing necessities say something concerning conflict of interest or are you only gonna keep listing your own coins along with the ones created by your friends?”
Coinbase Trading Platform
Coinbase is one of the foremost evolved and well-known exchanges within the globe. It works closely with regulators and has been increasing its operations domestically and internationally. It offers a classy trading platform, a crypto investment firm, a set of institutional merchandise, crypto custody solutions, and business crypto applications like Coinbase Commerce. It additionally recently acquired a license as a registered dealer underneath FINRA along with the SEC.
What all this suggests is that Coinbase exchange is getting down to look, sound, and behave precisely like a financial institution such as bank. The lines between the 2 are becoming blurred, and cryptocurrencies was originally meant as a replacement for a corrupt national economy, as proven by the note left by Satoshi Nakamoto within the bitcoin genesis block. Coinbase was started by 2 former Goldman Sachs employees, and insider trading isn’t a brand new or uncommon development within the financial sector.