X2Y2 AMA on 11 Aug 22: X2Y2’s update by the founder TP
August 17th, 2022

Date of AMA: 11th Aug, 22
Translator: @Goldenchichi1 - X2Y2 ambassador and degens
Official X2Y2 website: x2y2.io
Official X2Y2 Twitter: @the_x2y2

@tp_x2y2: Hello, our community mod Alex will co-hold today’s AMA with me. It has been a while since our last AMA, and I appreciate there are many audiences today. As the title of this space suggests, today’s AMA has no specific topic. Please feel free to raise your hand to ask questions, I will try my best to answer.

@tp_x2y2: Let’s start with some good news. The recent volume of the X2Y2 marketplace has been quite high and stably shares 10% of the market now. Remembering we were saying that we would try to bet OS if we could reach 10% market share, this objective remains unchanged.

@SpaceCatMC: The ERC-1155 has recently launched on the platform, but a noticeable categorization issue remains. For example, when I click into an ERC-1155 collection, I could not see different NFTs sorted out according to the traits. I would like to ask when can such a bug be fixed.

@tp_x2y2: We will check this bug and fix it ASAP. ERC-1155 is a demanding request from the X2Y2 community, and we keep hearing the development progress for the standard was slow. The development of ERC-1155 is actually a huge task (requiring a lot of development effort), and other NFT marketplace developers will agree with this statement. I have to admit that ERC-1155 is a useful function. We haven’t developed it in the first few months of the project because we are solving the important tasks first, and the development of ERC-1155 is not that urgent in our schedule. Some community members may not be happy to hear that, but we still believe arranging tasks in this principle is correct. Anyway, X2Y2 is now officially supporting the standard. We will fix the bug you mentioned ASAP.

@SallyReichman12: What is the coming plan for the Ajin Youth Rebel? We haven’t heard any updates since the team claimed to mint the rest of 9000 Ajin NFTs months ago.

@tp_x2y2: Frankly speaking, the team has been working on other marketing tasks recently and hasn’t paid attention to Ajin. The decision came from our overall analysis of the current market. Part of the community thinks Ajin shall be launched in a better market for better synergy with the marketplace, it is very likely for the market to react unresponsively to the project now. On the other hand, it may be unfair to the Genesis Ajin holders if the rest of Ajin is free-mint as the floor price of Genesis Ajin is likely to drop with this decision. Under our due analysis, therefore, the best decision for Ajin is not actively moving in this market status. It may sound like an awkward decision, but I am trying to honestly tell our community what we are thinking.

@SallyReichman12: Okie. Can you reveal what the coming planning is?

@tp_x2y2: We are building a launchpad on X2Y2 where projects will be able to launch safely. The launchpad will allow X2Y2 to provide auditing and launching services for the market, as our extension on the primary market from the secondary market now. We are looking to partner with prime projects to launch their upcoming project on the launchpad to gain some experience of successful project launching for Ajin’s launch in the future. We may be one of the most successful NFT marketplaces, but I have to admit that we lack experience in project launching.

@wang42241975: I think the idea of an in-house launchpad on our platform is great but is there any other planning except for that?

@tp_x2y2: Yes, we have. The launchpad is actually just one of the small pizzles in our business development and operation. Our major development resources are put into some major inventions, which will turn X2Y2 into a more important role in fundamental infrastructure in the web3.0 space. It is not a suitable moment to announce the details of these inventions now. Still, we strongly believe in such a decision, and I have recently pitched 7-8 investors about that daily for their recognition.

@wang42241975: Okie. And I also wanna ask how you view the competition from DEXs. For instance, I think Sudo, recently purchased by Uniswap, competes directly with X2Y2.

@tp_x2y2: It is a really innovative model. But what I wanna say is that users are only required to sign once for listing NFT in other NFT marketplace, and it is 20 NFTs per one signature in X2Y2, which is one of the reasons why X2Y2 has been popular in newborn NFT projects since the flipping return is highly related to the speed of listing. On Sudo, users are required to pay gas fees almost equal to the price of an NFT, a really expensive one for projects with small market caps. More importantly, there are the gas fees on Sudo because the ownerships of NFTs are transferred into its pool, and the users will not be able to receive future benefits like airdrops as well as a list on other marketplaces. Besides, I do not think forbidding the project team’s right to set up royalty on Sudo is appropriate. Therefore, I think there are some limits to adopting this model by the market. Nevertheless, it remains to be seen if this model will be widely adopted by the mass, and we are always open-minded to positive advancement.

@alltokens: I think X2Y2 is more user-friendly in terms of NFT liquidity. I think the model of Sudo is more like a trial of the market and shall be under our observation. I want to ask where the team is based.

@tp_x2y2: We are a Chinese team in Japan communicating to our engineers in Chinese.

@alltokens: I also want to ask how the team is going to differentiate X2Y2 from other competitors which are increasing in number.

@tp_x2y2: We are working on building our moat. The launchpad mentioned previously is one of the small planning, and other big tasks which will allow X2Y2 to partner with others to compete with OS are in progress. I would like to keep it under the shadow now for spying reasons, but you will hear them at the end of August or early September.

@alltokens: Thanks. I am asking these questions because I am a community organizer and want to see what goodies X2Y2 is building to benefit stakeholders like us.

@x2y2cn: Good to hear that! If you are looking to partner with X2Y2, please leave a comment on our DC. Thank you!

@nanbeiblock: I am a huge fan of X2Y2, so I dunt have any major concern about the platform itself. But I am curious about what @tp_x2y2 just said about meeting 7 - 8 investors per day. Can you reveal what the bet is during negotiation with them? Is it the X2Y2 token or the share of the company?

@tp_x2y2: It is really hard to find an investor willing to invest in our project in exchange for the token. Back in the time when we designed our tokenomics, the principle was to benefit our community to an extreme that no other projects would be willing to copy or create a more community-centric tokenomics. So what we are planning now is to grow our market share to increase the trading fee income so that the income for the team increases. This is the core message we want to deliver to the potential investors, and the future share of our trading fee is the bet on the table.

@cryptohaiyu: I am a representative of GameFi projects. Since I think GameFi will have a blooming future, will X2Y2 set up some kinds of support or channel for this territory? For instance, setting up a special area for GameFi.

@tp_x2y2: This is not a problem. We welcome partnership with GameFi projects and have already talked to many teams in this territory. Those teams' major concern is finding a way to retain the value created in this ecosystem. Most GameFi teams do not like a secondary market like us since part of the value they create may go into the trading fees.

Therefore, if a GamiFi project is willing to partner with us, we are willing to share with you the X2Y2 token as compensation for the trading fee so as to maintain the GameFi value chain closed as much as possible. If you are willing to partner with us under such conditions, we are happy to talk with you about how we can create a more complete GameFi product.

That said, many stakeholders are reluctant to share their users as a way to retain users in their eco-system. I have seen a lot of teams like this. So if you are more open-minded, you will also gain our full support as well.

@cryptohaiyu: Generally speaking, we are a group of web2.0 teams who focus more on the level of entertainment we can bring to our users rather than trying to earn some quick buck with the Defi concept added. We can open a mutual channel together, and I will help invite more gaming projects from the web2.0 space that are not that rushed to make a profit here.

@tp_x2y2: That will be great! We are very happy to help.

@sunken777: I just heard TP said the team was based in Japan and would soon add a launchpad on the platform. I am expecting some Japanese big IP start entering into Web3.0 space. Does the team consider partnerships like this?

@tp_x2y2: Yup, we are co-investing with two famous Japanese gaming production houses in some gaming Layer-1 projects. There will be a possibility that we will launch another marketplace there. Despite that, we are a team of developers based in Japan, but we are not a Japanese corporate, and thus we are prudent to develop in the Japanese market.

We have a good network of Japanese IPs, but it remains observed if we have major partnerships with them due to the reason above. I would say people are working toward this direction, including famous novelist Murakami Ryū, whose success inspires many others.

I am in touch with many Japanese illustrators, who are in worse living conditions compared to those in Chinese. I think they will try many new things in the future, while the famous IP may move more cautiously.

@SallyReichman12: Previously, the team revealed to build our own aggregator, but it seems now it is stopped. What is the team's major concern and future planning about the aggregator?

@tp_x2y2: We told all our mods that we stopped this plan without public announcement. We did think about this seriously and did not think that it was a wise move to be an NFT marketplace and an aggregator at the same time. I would like to keep the reason behind such a decision secret.

I would also like to take this moment to give an apology to our community since I have heard some negative emotions spreading out here. Part of the reason may be the team, and I have interacted less with you. To speak frankly, hanging around in DC kills time, and that is the core reason why it is me usually speaking in DC. I explicitly suggest the team, excluding the two representatives, spend no time interacting with the community to maintain the desired speed of development. We believe communication is more effective with just a few representatives bringing out the messages.

I used to think communication with the community solely relying on mods is the best way, but recently I realized the community wants me to speak directly with it. That said, I have been busy communicating with others (investors), among them are in American time, and I often met them as early as 5:30 am and as late as 11:30 pm. Therefore, you can see I have talked less in DC recently.

I will then talk more in the community. In the future, if you are feeling forgotten or thinking the team is doing nothing, please let us know. The team of X2Y2 is now working on some high-level tasks, which draws most of our energy and time, and a third party may not see the such effort. I hope everyone can understand.

@TheCryptoJohnny: Does the team have part-time or full-time marketing experts? Or is it still the community doing the marketing tasks mainly?

@tp_x2y2: Wacky and Jow are our full-time marketing experts. GTR and SIX will be part of the full-time team too.

@TheCryptoJohnny: As said, some major upgrades are coming. Can you reveal the important days or the master schedules for that? For example, the VR function will be added in a month or two. Is it available to reveal?

@tp_x2y2: I would like to say you can expect the coming major upgrades to happen between the end of August and early September. The upgrades are a huge extension of current functions. And there will be another major development between the end of September and early October, but it is not VR since it does not resonate with the demand of our users now.

@TheCryptoJohnny: Is the upgrade at the end of August or early September more like a small extension such as a launchpad or a bigger one?

@tp_x2y2: The big upgrade will be held in early October, while the one at the end of August or early September will be like an extension of our service. But both of them are a lot bigger than the launchpad. The trick of launching a successful launchpad is that the first three projects that must be profitable for other project teams will be confident to launch there. Thus, the real problem is choosing the right projects to partner with and not on the tech side. Also, we have not decided yet when the launchpad will be launched. It is not a function critical enough to affect the launch of other functions.

@SpaceCatMC: Talking about launchpad, I am now co-operating a channel in the Aerfa community, in which I host NFT-related activities every night to help inspire artists or project teams to launch good projects. I think that since we are tech-focused, I may be able to be the bridge to link up X2Y2 with such Chinese communities as a marketing tactic. For instance, the X2Y2 community will help manage these communities with online and IRL events.

@tp_x2y2: Agree. We need to figure out how to deliver better AMAs as well. The main goal of launching is to make all stakeholders happy, and things like a rug cannot happen. Doing these things aligns with our original intention to deliver good projects to the masses.

@SpaceCatMC: Yes, I think launching a project is not solely about profit but the community's joint participation. We can still learn something from the project, at least. I think learning new knowledge and being active in communities will eventually generate a bigger influence on the space, especially now in a bear market. This is just my opinion. One more question, how is your view of the ETH merge?

@tp_x2y2: I have gone through the late merge and tweeted about it on the same day. We are not going to place our market in any fork because I do not think it works. This is my personal feeling, and my apology if I speak too frankly.

@sunken777: TP just mentioned currently, there is inharmony in our community. It may result from the weak performance of NFT and its utility.

@tp_x2y2: Do you mean our NFT is lacking utility?

@sunken777: I have heard from the community that there is little utility to our NFT. I wanna know if there will be some changes or future planning for that.

@tp_x2y2: ILO participants are our earliest supporters. For that, we will guarantee their benefits of them. On the other hand, in the beginning, when we introduced the project, we mentioned that there would be some extent of social experiment. The design of tokenomics that minimizes the team’s benefit to share more with the community so that our competitors had no way to surpass us in terms of tokenomics, was from such concern.

I hope the ILO participants will understand that the project's ultimate goal is to beat OS. All of you may be benefited economically or emotionally from the pump of token price, the share of fees, and the growth of AJIN NFT during this process since we are doing the right thing. Among that, I think the right product is of vital importance.

The X2Y2 token performance in ETH terms has been higher than ILO terms price most time, and these participants are not in a loss position in ETH terms. Also, more than 300 ETH have been distributed to the ILO pool consisting of 1500 ETH.

The current rate of fee projects an over 65% APY to the ILO participants, which means not only will they receive 65% worth of their ILO invested value in ETH terms, but they also hold the X2Y2 tokens at the end. I am not saying that the return is already excellent. I am saying it is a fair ROI during the purchase of the goal to build a successful marketplace.

The goal matters are how to surpass OS while the benefits of our fans are not sacrificed. Luckily, we are now in a very intense battle with OS, and the community’s benefit is not sacrificed.

We shared a little trading volume with OS in March, and X2Y2 was so small compared to OS in April, but we surpassed the trading volume in May. We gained a lot of attraction since June that the sales of BAYC in the last 7 days have surpassed that of OS. I checked the numbers this morning, there were 30 and 29 BAYC 7-day sales on X2Y2 and OS, respectively. Therefore, we are in an excellent status now. “What is the function that will enable us to increase the market share and solve users’ pain points” is our greatest concern.

Honestly, I am not spending time figuring out how to enhance our market cap to the utmost in a very short time frame for the community to earn a bag of money. What I hope is the community can adventure with us along the way until we reach the goal.

Someone may challenge the team with the income earned from the project. The perspective they miss is the importance of cash flow to a corporate. The income earned is the foundation of the project for the team to be able to keep building valuable functions. Someone may assert that the team does not work hard anymore with the income. Such a statement was quite heart-breaking when I heard that. If we really intend to enjoy our lives with the income now, we have a lot of choices, and we should not choose the painful ways to start the sub-project afterward.

@zenyyds:This is my first time joining X2Y2’s AMA. I can see the CEO is quite young and believe this project is bullish. The platform is built step-by-step from the root with a cohesive community. Since X2Y2’s business model is different from Ponzi’s scheme, which attracts newcomers with unreasonably high ROI without true revenue. Currently, it is the community to promote the project, and the noise is not very big. Some other projects are seen by the media as golden kids capable to compete with OS, and their tokens prices stand on a strong wall following the market’s rise and fall, despite the fact that the trading volume is bleak on these platforms.

As TP said, we are reaching out to VCs and institutional investors daily. It is a great promotion for us if some big institutions like Binance invest in X2Y2. UniSwap is created by just two teens. We are developing toward a more high-ended position while keep reaching out to potential investors for further exposure.

The main focus now is to build a comprehensive platform, and profitability optimization does not resonate with our original intention. Some platforms provide monotonous functions, the revenues are still considerable, and VCs are willing to invest. I may not speak in an organized manner.

@tp_x2y2: Your name tells me that we are in the same family. Yes, I totally agree with you. Why am I spending most of my time reaching out to investors? You have just answered that. A corporate needs different growth engines in different growing stages. We begin with a very grass-root level movement, you may call it a kind of social experiment, to a different stage now. At this point, we indeed need to start building our brand, and one of the best ways is to partner with top-tier institutions.

That is what I spent 80% of my time on, and the 20% on recruitment. We need talents to achieve our goal sooner, and I am on the same page with you on this point. But I disagree with launchpad does not add value to our core business. Binance can be so successful because it has introduced many famous projects, and the idea of a launchpad is an important puzzle in the marketplace. If you have noticed, OS has launched its own launchpad.

@burgess64639196: I have noticed Lan Xing (previously our community manager) has left (and become The Element’s CM). I was having trouble listing on Element to X2Y2. Is it our problem? I can see some community members say our contract is not an auto-connect one. Forgive me for my poor tech knowledge.

@tp_x2y2: From our perspective, owning a marketplace and aggregator at the same time is like being the athlete and the judge at the same time, which is unfair. To speak frankly, Element did not officially apply our Key, but they applied it with another identity. We explicitly state in the API manual that it needs to apply officially to obtain our Key.

Later, they reapplied, but we have not yet approved it, so now Element cannot list on X2Y2. We do not think we are doing anything wrong on this issue. We are not turning against Lan Xing. He was titled community manager (we dunt know which title fit his duty since soft shilling is hard to express in English with a title, so we assigned him as Community Manager) and led our group of volunteers mainly on soft shilling.

What happened next? Lan Xing talked to me and thought the soft shilling did not work and proposed another strategy, which I thought did not add value to our community. Maybe I am wrong, but eventually, we terminated our partnership. I learned something from that too. For any new recruitment of community manager afterward, we will sign a non-compete clause to protect ourselves since the community thinks Lan Xing jumps to our competitor because of a bad relationship with us.

@xij669: I am not asking any questions. I just wanna express my feeling here. I am an ILO participant and have witnessed X2Y2’s growth throughout the way. I love to hear TP’s speech in Space and think TP is a very principled and target-driven man. I do not know how others view the team and the project, but I deeply believe in you guys and will always support our growth. TP has repeatedly mentioned the goal to beat OS, I dunt think this is the ultimate goal. Recalling what you said about positioning ourselves into some fundamental facility in the web3.0 space, I think this is a great new goal worth purchasing. BTW, I am living in Japan, too. If X2Y2 launches any IRL event in the future, I would love to join.

@tp_x2y2: Great, I haven’t thought about that. Let’s chat directly in our inbox!

@sophia56169583: I do not have much to say either, and I want to ride on the API issue to say something. Since I am not active in the DC group, I may be able to provide another angle of perspective. I think what the team decided is reasonable. In my point of view, I think there are in-house rules for each exchange of API issuance to guide in which conditions can a third party be able to receive the API.

I advocate that there shall be a code of practice or standard within the exchange and marketplace sector. For instance, for a marketplace like X2Y2 and OS to breach share each other’s API, tools, and data, both parties shall obey some preset principles and clauses in a good faith to protect each other.

In the situation where a party’s right is impaired due to the use of API by another party to fulfill its use, such an act shall be prevented. For example, A marketplace can attract all the listings on the B marketplace through API, it is like people can see all the listings people list on eBay on Amazon, and the customers can buy the goods directly on Amazon. In such a case, the A marketplace takes away the core business of the B marketplace, which breaches the benefit of the B marketplace. In my understanding, this is different from a monopoly.

Back to where we are with Element. There are two modules of Element, the aggregator and the marketplace. It is obvious how our sales will be transferred if Element combines X2Y2 on its aggregator. It is OK if it is only working on the aggregator, but it s now working on a marketplace too, which may indirectly compete with us. Most Element aggregator users are very likely to use the Element marketplace. I don’t think this is fair to X2Y2 and all the stakeholders of X2Y2. We shall be supportive of giving out our API for analysis and aggregation purposes. This is my opinion

@tp_x2y2: I am speaking with my heart. I am really unwilling to have malignant relationships in the exchange market. Despite our competing nature with @Looksrare, we always deem it an honorable team with different thoughts and playing on different tactics. The market will eventually give the answer, but I cannot tell how it ends too. Anyway, I think @Looksrare is an amazing team. I have the same view on Element and wish them well too, but we have some rules and principles on some aspects. I hope they can understand.

@JoeTheLim: I have a question just posted on DC. It is a sensitive question, and please feel free to answer it or not.

@tp_x2y2: Let me read out the question here. “Why the team sent the token from treasury to an exchange?” It is because we will spend the money, whether from the treasury or us, on our eco-system building. The reason is just that simple. In the current stage, it will be lots of privacy issues if all the transactions we make are doxxed on the chain, although these problems sometimes are not that obvious for the public to notice. But it is still troublesome to filter which transaction shall be doxxed or not, decreasing our efficiency.

Storing the money into a centralized exchange makes us easy to work. And it is meaningless to check how much balance our account remains since it is easy to manipulate. Anyway, I can guarantee most of the money will be in the treasury for the project’s long-term development. The four principles of entrepreneurship - 1. Don’t run out of money, 2. Doesn’t matter, 3. Doesn’t matter, 4. Ensuring there is enough money to run your business. It is as simple as that.

Thank you everyone here, for hearing my bullshitting despite the bearish market condition. A great thanks to Alex for being my MC. I will try my best to host an AMA once per month. See you next time!

The X2Y2 ambassador Goldenchichi
Twitter: @Goldenchichi1
Official X2Y2 website: x2y2.io
Official X2Y2 Twitter: @the_x2y2

Be the dreamer who hits the ground.

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