0x Project pumps 46% after an announcement was ‘leaked’ on social media.
This is the second time that an 0x story has been discussed on social media before a major pump.
Yesterday, popular Ethereum token 0x project ($ZRX) increased almost 50% in value within half an hour, after it was announced that popular cryptocurrency exchange, Coinbase, had acquired Paradex — an exchange built on 0x.
Note: news of the announcement was discussed on social media 20mins before the price movement.
23rd May: How it played out
7:39pm — Rumour of ‘major announcement’ breaks ($1.05)
Our algorithm firstly alerted our users to this tweet:
But how did @CryptoChattr know? Well, apparently news of this ‘major announcement’ was mentioned on CNBC, which CryptoChattr then tweet’ed.
45 mins later — The official announcement is made (+5%)
54 mins later —Social media joins the dots (+14%)
At first glance you couldn’t say “0x is going to explode” from the headline (i.e. “Coinbase acquires ParadexIO”). Step in social media to make the connection:
The reason $ZRX increased in value so much is because Paradex is built upon the 0x token; something many social media users realised quickly:
Many Twitter users were able to profit before the price pumped:
1hr 15mins later — 0x tops out at $1.53 (+46%)
As the saying goes, “buy the rumour, sell the news”. Within 30 mins the price had increased 50% then dropping to ~$1.31.
26th March: We’ve seen this all before
This isn’t the first time a Coinbase announcement had a huge effect on the 0x price. On the 25th of March, Coinbase announced that it would be supporting the Ethereum ERC20 technical standard (i.e. the token protocol which underpins the majority of ICOs):
However they never announced which coins / tokens would be supported. Despite this, Twitter quickly “worked out” that 0x would be favourite to be listed, inadvertently increasing it’s value by 40% in a matter of minutes.
Although, the Coinbase announcement never mentioned the 0xproject, the number of tweets mentioning it spiked shortly after. Social media had made the connection:
This article was collated by Scoop Markets.
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