Almost half of Ethereum’s block space has been consumed by a new project called XEN Crypto which is causing the network emission to drop and gas prices to rise.
“Users have paid almost $1.8 million in gas fees to interact with the token contract, which has a market cap of $500,000,” DeFi analyst ‘@0xfoobar’ reported.
As a result, the supply of Ethereum has decreased since October 8th. The Ultrasound.Money dashboard is currently reporting supply growth of -0.41%, meaning that the asset has, at least for now, become deflationary.
Over the past 24 hours, XEN Crypto has resulted in the burning of over 1,300 ETH, worth approximately $1.7 million.
ETH is deflationary again thanks solely to a token called XEN, which has consumed half of all Ethereum block space in the last day.
Users have paid nearly $1.8 million in gas fees to interact with the token contract, which has a market cap of $500,000. pic.twitter.com/gJ8h2Zl0IF
— foobar (@0xfoobar) October 9, 2022
So what is XEN?
XEN is a project created by the “Fair Crypto Foundation”, with the support of Jack Levin, one of the first Google employees working on cloud infrastructure. The ethos aims to empower the individual with a token that starts with zero supply and has no priors, CEX listings, admin keys or immutable contracts.
‘Foobar’ commented that it “copies a couple of HEX-like mechanics, but the important thing is that an APY exists”, suggesting that there are some Ponzi-type properties.
XEN, which launched on October 8, can be claimed and minted or staked and is based on the first principles of cryptography: self-custody, transparency, trust through consensus, and permissionless exchange of value without counterparty risk.
According to the XEN Network dashboard, there have been 369,515 active minters since genesis over the weekend. The total supply is 174 million and offers a 20% APY for staking the token. Minting is free, but it uses gas and prices are rising due to degen demand for this new token.
Levin commented on the effect on Ethereum, saying it was bullish, but perhaps not for those who now have to pay more for their transactions.
When XEN was launched, Ethereum supply shows a reduction from October 8th… (Note that 50% of Ethereum gas fees are burned). Bullish for Ethereum. pic.twitter.com/vA51H4rum5
— Jack Levin (@mrJackLevin) October 9, 2022
XEN price reaction
The price of the token rose to $1 right after genesis, but has fallen back to $0.0032 according to Coinmarketcap, which just listed it.
At the moment it can only be traded on Uniswap, where there is very little liquidity, and the feedback already suggests that it could be a scam. Time will tell if the latest crypto hotcake turns out to be another scam.
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