Coinbase’s recent listing of Ox’s ZRX token has stirred speculations and conflicts of interest among crypto traders and investors. This is because of the participation of members and the criteria that was applied to choose the ZRX token and leave out Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), and Zcash (ZEC).
The Importance of A Coinbase Listing
A Coinbase listing is the cryptocurrency world equal of the Holy Grail for the developers of that token. Apart from the noticeable advantages- comprising of an exponential growth in the price and volume of any digital currency listed- Coinbase listing expose tokens to a broader audience, raising the long-term potentials of mass adoption.
The Conflict of Interest that Was Stirred
A conflict of interest arose as The Block, a crypto news website, raised a direct link between the token listing framework in 2017 and an investment company, Scalar Capital, which featured in the public sale of ZRX token. Remember, the ZRX token was listed on Coinbase just one month later.
Besides, Linda Xie and Jordan Clifford, the founders of Scalar Capital, were former workers of Coinbase. Additionally, Linda Xie is the wife of the co-founder of the Ox project, Will Warren. Three out of five advisers of the Ox project were workers of Coinbase.
Coinbase’s illogical listing of ZRX ahead of XLM and ADA makes no sense at all, and there have been several questions and speculations from the public concerning possible collusion. ZRX was ranked outside the top 25 tokens by market capitalization prior to its listing, and since it is a pre-minable coin, the crypto community is doubtful whether it could be confirmed by SEC as a utility token.
This is what one crypto user by the name CryptoRand said.
“Every time that Coinbase talks about new listings this $ZRX picture comes to my mind. I need help.”
This is what another crypto enthusiast by the name John Cravalho said.
“Hey @Coinbase, do your listing requirements say anything about conflict of interest or are you just gonna keep listing your coins and the ones made by your friends?”
The crypto community has linked the dots with the truth out in the open and is strongly speculating of insider trading and collusion between the mentioned parties.