Welcome to the xETH Exclusive AMA with The Gem Hunters. We would like to kindly thank the team for sharing information on their new project with our community.
Q1)- Let's start off with what xETH or rather Xplosive ETH is ?
In short xETh is a price-reactive (elastic supply) deflationary token that’s pegged to the price of Ethereum. Now what this means is the supply of xETH can change depending on the relationship of the price it trades at versus the trading price of Ethereum.
So if the price of xETH is greater than 0.01 ETH, then everyone gets a positive rebase. This means everyone’s token holdings will increase.
Now, this is not a new idea because tokens like AMPL, SLINK, REBASE, etc. have an elastic supply. But what makes Xplosive Ethereum different is it never has a negative rebase. Meaning you never LOSE tokens if the price is below 0.01 ETH.
So if the price does drop below the peg price of 0.01 ETH, there are deflationary mechanisms (token burns and redistribution to stakers) to drive the price back up.
It’s essentially taking some of the best parts of elastic supply tokens and combining them with hyper-deflationary tokens.
Q2)- Who is the team behind xETH and what are their background's ?
The team behind xETH are a group of blockchain investors / nerds who became friends online. After seeing so many projects with good ideas but poor execution fail, the team decided to launch their own because they realized we all had unique-but-useful skillsets to help push the project forward.
We decided to remain anonymous because some of us have separate day jobs and other projects. Also we wanted to avoid being public facing because that would require a lot more legal hoops to jump through (like KYC), a bigger presale raise, and possibly having to enlist the help of VCs, which we believe is against the decentralized and communal nature of crypto.
Here’s a quick background of the team members:
Chris — Team Lead
Chris has been studying DeFi token-economics this past year to optimize xETH’s ecosystem. Because he is involved with other blockchain projects, he has recognized where most of them fall short, and designed xETH to overcome these common pitfalls.
Jonas — The Idea Guy
Jonas has been in the crypto space since 2016. He and Chris are the masterminds behind the xETH concept. Together they plan to disrupt the entire Defi space.
Steve — The Solidity Developer
Sarah — Marketing and Project Management
Sarah is a digital marketing whiz and consultant in the financial space. She has connections with influencers, exchanges, developers, private investors and understands the nuances of crypto marketing.
Anthony — Content and Marketing
Anthony is a direct response copywriter and digital marketer who has run performance campaigns for HBO, Uber, Lyft and King (Candy Crush). He will be leveraging his 10 years of copywriting experience to bring new users into the xETH ecosystem.
Jeff — Advisor
Jeff is a crypto OG who has been in the space since 2013. He has successfully launched his one project and will be advising the team on how to ensure xETH is a long-term, sustainable project.
Q3)- xETH has a rebase mechanism , typically in the past this has not worked out well for coins , So why did the team choose this mechanism for the coin ?
Great question! The short answer is because we improved on the standard rebase function most of these other AMPL clones employ. We added some unique features that differentiates xETH from others. For example, we whitelisted the uniswap pool from the rebase mechanism (this means price will not change after a positive rebase), we removed debases, and implemented burn mechanisms.
Q4)- The rebase mechanism on xETH is a bit different than other rebase coins like AMPL and SLINK as it includes no negative rebases and a burn function on all transactions . Could you tell us why the team decided no debases and a deflationary supply were the best features for the xETH coin ?
We decided to only include positive rebases because debases can have a negative impact on price from a psychological point of view. Although a debase technically doesn’t change much (since EVERYONE loses coins, and the price per coin goes up), holders often panic sell their tokens because all they notice is their token holdings drop. And when multiple holders do this, it can lead to apocalyptic sell-offs and crash the project beyond recovery.
So we decided to remove negative rebases altogether and replace them with deflationary taxes per transaction that decrease the total supply, so as long as you hold, you are gaining a larger % of the market cap by default. We’re also planning to implement staking, which will further encourage holding because they will receive tokens from sellers.
Q5) You guys are partnering with the COM (Community Token) project for your launch. How did you pull that off and why did you decide to go with them?
One of our team members was an early investor in COM and found their community refreshing because they had open discussions about other projects and how legitimate they were, rather than moontalk and memes. So when we decided to launch, we asked for their help and coincidentally, they were also looking for a project to partner with to kickstart community-based vetting and partnership models.
So the COM team helped us get the project off the ground with lightning fast speed, and the terms we had in our agreement was a 5% airdrop of xETH to COM holders, 150 ETH (out of 335 ETH) presale allocation for COM holders, and creating an xETH/COM liquidity pair on Uniswap for the first 48 hours.
So to clarify the last point: if you missed our presale and want to get xETH in the first 48 hours, you’ll need to buy COM first, then use that to buy xETH on Uniswap. After 48 hours, a standard xETH/ETH pair will be added to Uniswap.
Q6)- Ampl is pegged to a dollar , Slink to 1 Link and Ampl Gold to an ounce of gold .
Why did the team decide that a peg to 0.01 ETH would be the right path for this coin and this is probably the reason why it is named xETH .
It’s simple. We chose Etherum because it is representative of the DeFi boom as a whole. Ethereum (along with Bitcoin) has the biggest impact on alts and low-caps. Therefore, we wanted to create something that could follow the price movement of ETH.
The name Xplosive Ethereum came to being because we are anticipating explosive growth with this token due to the economics.
Q7)- Let's talk a bit about the RoadMap it's very short term with the main goal being the
Starting with the staking Dapp development , will this be the primary focus for the foreseeable future until release or are there some other surprises not in the short term timeline but will be in the longer term goals ?
As a team, we like to focus on 1 thing at a time, so the next focus is the staking app. I can’t reveal much more than that because our marketing team is urging us to announce news slowly over time rather than all at once to build positive momentum. Plus, we believe in community governance (again, COM has done a great job with this model) so our future features may be requests from the community instead of the team.
However I will say this: with how popular yield farming has become recently, it’s a definite possibility xETH becomes a stake-able pair on some other yield farming dApps.
Q8)- Taking into account of the relatively low supply of xETH (250000) , quite a bit has been dedicated to Development (30%) and Marketing (15.5%) , Nearly half the supply , the team clearly has a lot of plans for xETH but this does raise the question of whether they will be time locked or vested as some potential buyers may be scared away that nearly half the supply would be readily available to sell ?
Good question and I agree with you completely. This is a totally valid concern given the amount of scams we’re seeing these days, and often from projects that look promising to begin with. One of the reasons we partnered with COM is because people will always be skeptical about trusting an anonymous team, so we needed them to essentially vet and vouch for us.
We’ve already revealed our identities to the COM leadership team, and their community has grilled us about our project, including a private AMA with their research leaders and having their “Think-Tank” group look over our smart contracts.
But to answer your questions, we didn’t plan on time-locking these tokens because we will need to use them in the upcoming months for development, marketing, and partnerships. For example, we want to do a full code-audit soon and that will require tokens going out of the development fund.
However, if it makes the xETH community feel safe, then we have no problem locking up the tokens in a smart contract. At the end of the day, we are in this for the long-run and any movement from these wallets can be tracked from the public, so there’s no reason for us to sell tokens early on.
Q9)- As we don't have the community here with us to ask any questions they may have, Is there anything that the team would like to add to round up the AMA ?
One thing I’d like to add is we understand the importance of team reputation in this space. Since this is our first project, we are approaching this as carefully and transparently as possible (while protecting our real identities for reasons mentioned above).
We want to establish a reputation as an honest and reliable team so that in the future, if we launch a new project, we have a group of eager people willing to support us. I call this the “Bill Drummond” effect. His community supports everything he does because they know he is competent and transparent (despite him being anonymous). We want our community to feel the same way because we’re also in this for the long term.