OpenSea’s Challenger X2Y2: “Knock Big” with enough ammo to resist cycles

Although the entire financial market is in a downward cycle, the NFT field is still seeing a steady stream of new collectibles, and the NFT market is much more than image collections.

The characteristics of NFT determine that it is difficult for the market to form sufficient liquidity, so whoever solves the liquidity problem will have the opportunity to occupy the NFT market that still has a lot of room for growth.

This issue of Chain Tea interview invited TP, the founder of NFT trading platform X2Y2, to introduce us how this rising NFT trading platform intends to occupy the market.

When did the team decide to do X2Y2? What judgments were made at the time?

My team and I entered the blockchain industry in 2017, and we are also old users of OpenSea, but from the past experience, its platform is not particularly easy to use, and a team of more than a dozen people can also Make something to challenge it.

In October last year, the NFT market just started to explode, and we felt it was time to prove our product capabilities on a world-class stage.

OpenSea has grown up and accumulated a lot of historical baggage, or technical debt. It is difficult to iterate, but there is no room for these technologies to catch up. As a new challenger, we can fully utilize its core functions to the extreme.

In addition, the biggest problem of OpenSea is that the entire economic model is still the traditional company system – users contribute millions of dollars in handling fees to the platform every day, and these assets originally belonging to Web 3 have not been re-drained into this system.

Therefore, we believe that an easy-to-use product coupled with a stable token economy will have the opportunity to defeat OpenSea.

Because of the above advantages, X2Y2’s “blood-sucking attack” launched by OpenSea is very effective, so how can X2Y2 avoid the “blood-sucking attack” of latecomers?

Don’t worry about this, because compared with OpenSea, the number of users of X2Y2 is still a drizzle so far. If it reaches the level of being attacked by vampires in the future, it will already be a sweet trouble.

So at the moment it’s not something we need to worry about.

The NFT collectibles market is a cultural industry, which means that the evaluation criteria are diverse, so what are the criteria for X2Y2 to select cooperation projects?

Many people compare the NFT market to a second-hand exchange market such as salted fish, but a large proportion of salted fish are daily necessities, while the NFT market does not have any daily necessities. The value of digital collections is the empowerment of the project party or the community or consensus formed.

So our judging criteria are not important, we just provide a tool, as long as it is a project recognized by the community, we are willing to cooperate. About 30% of our team colleagues are responsible for this part of the work.

X2Y2 attaches great importance to the feedback from the community, but different users have different demands. For example, the ENS pending order reward was initially cancelled according to user feedback, and then another user believed that this violated the fairness of the trading rules. So how does X2Y2 assess community opinion?

It can be seen from the many decisions we have made that we are actually willing to take some risks, including being the first to propose a pending order reward. This original intention is good, hoping to encourage more users to increase liquidity, and then leverage the entire market through liquidity. But reality is more skinny.

Regarding ENS, we have not cancelled the pending order reward, but improved the evaluation criteria of the pending order reward. Because the price of ENS is stable, and it can sell 10 or 20 pieces every day. But if you look at this number carefully, you will find that the total number is 200,000, and only 20 are sold every day, which is 1 in 10,000. The probability of selling is very low, but some NFT projects only have 1,000. 20 are sold every day.

Therefore, we also included the total amount of NFT issuance into the reward formula, so it seems that ENS will not be able to get the reward, but in fact, we did not cancel it, but found a more reasonable evaluation standard.

There was an error in the initial parameters of the staking reward contract not long ago. How does the team review this incident?

This incident did not generate any value for any party, and it was a big blow to us. Without this mistake, the currency price might be three times or even higher than it is now.

I was too hasty to recap this.

There are nearly 20 contracts running in the entire X2Y2 system. Among them, there is a parameter in the ILO contract that specifies that the platform will be officially launched in a few days. At that time, we thought that it might be launched in 3 days. As a result, many things must be launched before it can be done. We were pretty good at getting two or three hours of sleep a day during that time, so this blunder came out of extreme stress.

The lesson we learned from this is to reserve more time for ourselves in the future.

Based on what considerations did X2Y2 decide to launch Token Economics 2.0? How does the team evaluate the achievements and shortcomings of Token Economics 1.0?

The initial version was a reward for pending orders, but then there was an unexpected problem – someone brought a large number of NFTs to the platform that could not be sold.

We later adjusted to give rewards based on the probability of selling, which led to the behavior of exploiting loopholes to get rewards, and we spent a lot of energy to ensure that real users could get rewards, so it became a cat-and-mouse game, very Web 2.

We have improved several versions and spent a lot of development effort, but there is still no satisfactory model, so we have to think hard and understand the profit-seeking nature of people. We cannot stand on the opposite side of users, so we launched token economics 2.0.

The new model is that we try to incentivize users to place orders and then compensate for transaction fees.

Of course, the first month is a free period. We have completely abandoned the 2% platform fee that should have been charged, and sellers can trade NFTs for free. Then the buyer would have to pay a transaction fee (Gas fee) of twenty or thirty dollars to the Ethereum miner in the NFT transaction, and we also returned this part to the user through the subsidy.

If there are many people who come to play, then everyone’s Gas can be returned. If there are few people who come to play, then a great reward will be obtained. Simply put, it is Gas mining.

Now there is also transaction mining in the NFT market, but users need to bear 2% of the handling fee. Although this achieves strong binding to sellers, for users who actually buy NFTs, the funds in their hands are actually decreasing. And the way of X2Y2 is to attract real users to trade.

A month later, we will launch transaction mining and gas mining to balance the interests of buyers and sellers, allowing the market to choose.

What is the expected market feedback from the team after the launch of the latest program? And what are a series of supporting measures that may be introduced?

We hope to be able to open the door within a month of the launch of Tokenomics 2.0, and in fact the transaction volume has indeed rebounded significantly, increasing by more than 34 times as of yesterday.

Next, we will increase media exposure, especially in the European and American markets, but the most important thing is to mobilize the power of the community. In essence, Web 3 is about users leading users.

We will have a community incentive plan to allow users to spontaneously go to other communities to promote X2Y2, especially now that there is a “fee free”, this is a good point of dissemination.

There is a view that the crypto market may be in a downward phase next, and the NFT market will usher in a very large speculative bubble burst. How does the X2Y2 team predict the market cycle?

I think that as a really excellent product, there is no need to predict the market. If you really have the ability to predict the market, it is better to do futures or speculate directly, so we do not predict the market.

As for whether the speculative bubble will burst in the NFT market, I think there may be NFTs like avatars, but the financial properties of NFTs are much weaker, and NFTs can also simulate or represent many real-world things (such as real estate, famous watches and even Membership benefits), and then the liquidity for these illiquid things.

So I don’t think the NFT market will be finished. We focus on making the market well. No matter what kind of IP, we need a second-hand trading market. In fact, the successful products we can see now are basically from the last wave of bear market, including our team from the bear market in 2017 to today.

We will persevere on this track for a long time, and the X2Y2 team will continue to do it for at least two years without any problems with the current funds.

Finally, what might be the future opportunities and challenges for X2Y2?

The biggest challenge is whether we can find the user’s favorite NFT, which requires us to keep abreast of market dynamics, discover and meet user needs in a timely manner.

To be honest, in this field, whether it is a token economy or a product, it can be copied by competitors, so our weapon is to maintain the rapid iteration ability of the team and the ability to respond quickly to the market.

In fact, it is also the biggest opportunity, that is, whoever can have a sharper sense of smell can occupy the market.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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