Coinbase Exchange’s recent listing of 0x [ZRX] token has causedheapsof speculation and conflict of interest due to the involvement of membersalong with theevents leading up to the listing of the ZRX token among four potential tokens.
This conflict of interest arisesafter a recent report by a news portal ‘TheBlock,’ that confirmeda directlink between the token listing framework in 2017along with an investment fund ‘Scalar Capital’,thatinvested within thepublic sale of 0x [ZRX]. ZRX was listed on Coinbase exchange after a month later.
Additionally, Linda Xie and Jordan Clifford, founders of Scalar Capital, were formerstaffat the Coinbase Exchange.Moreover, Linda Xie is married to the co-founder of the 0x [ZRX] project,WillWarren.3outof 5advisers of 0x project werethe staffof the Coinbase exchange.
Theassociationbetween Coinbase and Scalar capital is bridged by Maksim Stepanenko,an engineering manager at Coinbase exchange. Maksim waslinkedwithin thedevelopment of the token-listing frameworkalong sideXie.In line withthe pitch deck obtained by The Block, Scalar capital possesses “asymmetric information” and “early access to the projects”.
Earlier in July2018, Coinbasethoughtto listextratokens to their listingincludingCardano [ADA], Basic Attention Token [BAT], Stellar Lumens [XLM], Zcash [ZEC] and 0x [ZRX]. Coinbase’sdiscretionallisting of ZRXearlier thanXLM andADAmakes no sense and therehave been severalqueriesand speculationsregardingthis collusion. ZRX had beencommercialismoutsidethe toptwenty five token listby market cap before its listing and being a pre-minable token, the community is unsure if itmayget affirmation from the SEC as a utility token.
Coinbase,above all,facedheapsof speculationonceit came to the listing of tokens on its exchange. The listing of Litecoin [LTC] back inthe month of April last year causedquitestirbecause ofconflict of interest,because theproject was developed and listed by Charlie Lee
Litecoin [LTC] was the third token to be listed on Coinbase back inGregorian calendar month2017. Thiscallraisedquitefew eyebrows and medialoudconflict of interestdue to the very factthat Charlie Lee was the developer of LTC and helped list his coinsincehe was still at Coinbaseunder the post ofDirector of Engineering.
BitcoinCash[BCH] didone thingsimilar inDec2017. Post listing,the priceof the coin skyrocketed and came to a haltoncethe Coinbasedecidedto halt the transactions amidst the investigation ofattainable insidertradingby the staff.