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.