Exploring new waters
By listing ZRX, Coinbase makes has supported listing an ERC-20 token for the first time. ERC-20 are tokens built on the Ethereum (ETH) blockchain platform that follow specific rules on how the token is transferred, and what data is offered to users regarding the token. During the ICO (Initial Coin Offerings) craze of 2017, many newly launching tokens were ERC-20 compliant. As a result, Ethereum gained a lot of popularity for housing most of the ICO projects.
The announcement today notes that Coinbase has launched ZRX support on its professional platform, Coinbase pro. However, trading will only be permitted after the right liquidity has been achieved. The exchange was quick to note that once the token becomes available on the main website, as well as its Android and iOS apps, a new announcement will be made to that effect.
Explaining its availability
While in its initial launch state, trading in ZRX will be available in most jurisdictions, barring the state of New York. Notably, Coinbase will initially offer three trading pairs, which are ZRX/BTC, ZRX/EUR, and ZRX.USD. At the moment, the exchange reckons it will not be offering trading in the ZRX/GBP pair. They also expanded on their ‘four stage’ approach to launching trading pairs:
In more detail, there will be four stages to the launch as outlined below. We will follow each of these stages independently for each new order book: ZRX/USD, ZRX/EUR and ZRX/BTC (note that at this time, we will not offer trading on the ZRX/GBP pair). If at any point one of the new order books does not meet our assessment for a healthy and orderly market, we may keep the book in one state for a longer period of time, or suspend trading as per our Trading Rules.
What is in the phases?
In respect to this development, Coinbase notes that it will be sending tweets from their Coinbase Pro Twitter accounts as each order book goes through four basic phases. The first phase will be the ‘transfer only’ phase, where customers can transfer ZRX into their Coinbase Pro accounts without being able to ‘place orders’. The second phase will be the ‘post only’ stage that will enable customers to post limit orders, albeit with no matches. The third and fourth phases are ‘limit-only’ and ‘full trading’ respectively.