Remember XEN? In October last year, XEN exploded the crypto market as soon as it was launched. The number of addresses participating in the project reached millions, which once made Ethereum's gas fee high.

However, just recently over the weekend, a similar but different project began to make its mark in the crypto community.

On October 28, the TITANX token was launched. According to DEXTOOL data, the price of the token rose by as much as 1,800% after its launch. However, in just two days, the price of TITANX fell sharply, down about 94% from its peak. Some community users questioned whether the repurchase funds and mechanism were effective and functioning properly.

What happened to TITANX from booming to nearly zero? Is there a chance of recovery in the future?

TITAN X: XEN's Evolution

How to understand TITAN X? In general, the mechanism of this project is very simple, almost identical to XEN, that is, consuming ETH to mint TITANX.

The official documentation of the project introduces a mechanism called "virtual mining machine", through which users can stake ETH and mine TITANX tokens.

In terms of token destruction, TITAN X adopts a destruction mechanism called "Proof of Burn 2.0". Developers within the ecosystem can use TITANX tokens to launch their own token projects, and in the process, TITANX tokens will be destroyed. This mechanism is somewhat similar to a nesting doll ecosystem, where one token is used to create another token.

Unlike XEN, TITAN X has also designed a mechanism in which part of the proceeds will be reserved for the project party and repurchased by the project party. According to official documents, only 28% of ETH is used to reward users who pledge TITANX tokens, while 62% of ETH is sent to the TITAN X contract for repurchase and destruction.

Security concerns

Community users have questioned the TITAN X project, pointing out that there are problems with the repurchase mechanism of TITAN X and that there are contractual risks. They are worried that the repurchase contract has a repurchase limit of 80 ETH and cannot be executed on time.

The repurchase operation of this project is not fully automatic, but requires the project party to manually call the contract through the address it controls to trigger the repurchase operation.

In addition, people are concerned about the security of the contract, so they suspect that the project party may use the contract to conduct improper operations. After querying the on-chain data, people found that the repurchase operation was interrupted for more than 7 hours during the period when the price of TITAN X tokens fell sharply.

Jake Sharpe, the founder of TITAN X, published an article on the X platform yesterday, saying that he might explain the plan to buy back and destroy TITAN X in a live broadcast. He also responded to the question of the buyback limit, saying that the buyback limit was originally set to prevent abuse and cultivate a healthy market. However, in a few months, he may remove the buyback cap.

According to on-chain data, after a 7-hour outage, the TITAN X repurchase address has now resumed repurchase and destruction operations, with approximately 4,700 ETH.

After returning to zero, where to go?

Although the buyback and destruction of TITANX tokens has begun, it has lost the trust of the community. According to DEXTool data, the price of TITANX tokens has fallen to near zero, down about 94% from its peak.

On-chain data shows that as the price of TITANX drops, the number of on-chain transactions of the token also decreases sharply. Since this token needs to be minted to be produced, this also means a rapid decline in the number of users.

Tx quantity of TITANX minting contract

However, the number of independent token addresses has not decreased significantly. Currently, TITANX has about 2,700 independent addresses, and at its peak, it only had 2,804 independent addresses.

The decrease in on-chain activity also caused the casting yield of TITAN X to recover rapidly.

However, the TITANX token has lost the trust of the community, raising many unresolved concerns. People began to question whether the project's smart contract design is safe and whether the project is likely to conduct a so-called "Rug Pull".

Compared with other similar tokens such as XEN, there is still a huge gap in the on-chain data and address number of TITANX. XEN once led a wave of enthusiasm and attracted a large number of imitation projects. Although TITANX has optimized its mechanism, it has not yet been able to replicate the success of XEN.

Although the TITANX token has taken a step forward in the field of virtual mining machines, it now seems that it is an almost impossible challenge for the TITANX token to regain the trust of the community, revive the popularity and attract traffic.

Everyone, please move your hands and pay attention~

Thank you for your support, see you next time!