This article uses XAI's activities as a guide to explore the investment value of XAI. Of course, this does not affect our participation in the activities to get benefits!
➤ Last event benefits and new event content:
According to official disclosures, the last event distributed rewards worth US$175 million to players at the top of the leaderboard, brought 500,000 new wallets/new users to the ecosystem, and created up to 5 million transactions per day.
The latest event, Vanguard: Genesis, was launched on the GALXE platform on June 11 and will last for several months.
It is inevitable that money will be spent on this event, but its core purpose is still to enrich the XAI ecosystem. In terms of players, the event content will guide players to experience the XAI ecosystem; in terms of developers, XAI has launched the Builder Quests incentive plan to encourage developers to move in. This kills three birds with one stone, not only increasing the activity of the ecosystem, but also bringing new players to the platform and enriching the ecosystem. The official expects to attract hundreds of thousands of new users and the deployment of dozens of new games and applications.
➤ As a Layer 3 blockchain network, what is the appeal of XAI?
As Binance's 43rd Launchpool project, XAI is an Arbitrum-based Layer3 blockchain network designed specifically for Web3 games.
Judging from the development trend of blockchain, customizing exclusive chains for specific tracks or projects has become a trend.
Dedicated chains usually have two purposes: one is to reduce the impact of gas fees on the ecosystem - many projects fail due to gas fees rather than defects in the projects themselves; the other is to be able to customize and optimize according to the type of project, such as reducing security to increase speed.
It is crucial that the XAI team is also the Arbitrum team. As we all know, the competition between OP and ARB is very fierce. With its super chain and one-click chain launch function, OP has successively obtained Coinbase's Base chain and Binance's OPBNB chain, causing the price of $OP to soar. On the other hand, $ARB, with the unique advantages of its ecosystem, has always ranked first in the Rollup field in terms of TVL (total locked value), ranking fifth among all chains, second only to the four Layer1 mainstream public chains of Ethereum, Tron, BSC and SOL.
The launch of XAI is part of Arbitrum's efforts to demonstrate its technical strength as a "leader" in the Rollup track, as well as its layout and expansion of its own ecosystem, aiming to attract projects that require Layer 3 technology. Therefore, the success of XAI is crucial!
➤ As a game-specific chain, how does XAI perform?
In terms of lowering the threshold, XAI chooses to free gamers from the constraints of traditional crypto wallets. In terms of mechanism, XAI will manage the wallet for users and integrate it into the game backend to provide users with a seamless experience. This approach lowers the threshold for Web3 users. As for security, with the endorsement of Arbitrum, we should be assured.
In terms of the game ecosystem, according to information officially disclosed by XAI, there are currently 9 games in the ecosystem, covering multiple types such as role-playing, real-time strategy, card collection, card battle, Rogue-Lite and MMORPG. These include not only lightweight casual games, but also multiplayer online role-playing games that require players to invest a lot of time. The types are already quite rich. It is worth mentioning that the development teams behind these games include core members from well-known 3A game companies such as Ubisoft, Activision Blizzard and Pixar Animation.
It should be pointed out that as a public chain in the #GameFi track, the reason why XAI has a small number of game projects is that in order to ensure the quality of the projects, XAI has set up two mechanisms: one is to directly acquire game development studios and develop games by themselves; the other is to select games on the market through an internal screening department and decide whether to go online. The games that pass the screening will be handed over to the department responsible for deployment and wallet payment business, making them exclusive Web3 games of XAI.
XAI also has two important functions: sentinel nodes and a staking system. While the threshold for investing in nodes may be high for most people, the staking system is more affordable. XAI's staking mechanism is closely related to token economics. In particular, when staking, you do not stake $XAI directly, but need to convert $XAI to $esXAI and then stake it to get returns. If you want to exchange $esXAI back to $XAI, you need to wait for a period of unlocking. This staking mechanism is designed to attract us to a locked-up staking while providing the convenience of staking pool conversion. Interestingly, the staking pool is not provided by XAI officials, but by users (mainly game project parties in XAI). The more $esXAI staked by the project party, the higher the level of the staking pool and the more lucrative the returns. At the same time, the node keys obtained by operating nodes can also participate in staking to improve the level of the staking pool.
From this chain of events, we can see that XAI is very attractive to large investors.
➤ So, back to the question at the beginning of the article, XAI’s activities are definitely worth participating in, but is XAI worth investing in?
Although the price is close to a new low, ambush $XAI may not be the best choice. The current circulating market value accounts for only a little more than 1/10 of the total market value, and nearly 90% is not in circulation. Considering that it is launched by the same team as Arbitrum, this release strength is understood by those who understand it. If you don’t understand, leave a comment in the comment area. 🤣
But Arbitrum's advantage lies in its ecosystem. Its on-chain projects $GMX and $MAGIC have performed well, and XAI's wealth code may also be in its on-chain projects.
From my personal understanding, the core purpose of this event is not to increase the price of the currency, but to improve the ecosystem. Since the official has organized an event for us to participate in and experience, we might as well give it a try.
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