Original - Odaily
Author - Loopy
Remember XEN? In October last year, XEN detonated the encryption market as soon as it was launched. The number of addresses participating in the project reached millions, which once made Ethereum’s gas fees remain high. Odaily once said in Former Google employee? Have you ever led the Gui Ling native dog? Analyzing XEN team background suspicions” article for interpretation.
This past weekend, a project similar to but different from XEN suddenly became popular in the encryption community in the past two days.
On October 28, the TITAN Lasting only one day, the price of TITANX began to plummet, falling about 94% from its high point. Some community users questioned whether the repurchase funds and mechanism were effective and functioning normally.
From becoming popular to being close to “zero”, what happened to TITANX? Can it recover in the future? Odaily brings you a detailed explanation.
TITAN X: The further evolution of XEN
How to understand TITAN X? In summary, the mechanism of this project is very simple, almost exactly the same as XEN, which consumes ETH to mint TITANX.
Official documents show that TITAN X has a mechanism called virtual mining machine; with the help of virtual mining machine, users can mine TITANX by pledging ETH.
As for token destruction, TITAN X uses a destruction mechanism called “Proof of Burn 2.0”. Developers within the ecosystem can use TITANX to launch their own tokens, and when they do - TITANX will be destroyed. This mechanism is similar to the XEN matryoshka style that Odaily introduced before.ecology。
Unlike XEN, TITAN According to official documentation, only 28% of ETH is used to reward users who stake TITANX tokens, while 62% of ETH is sent to the TITAN X contract for repurchase and destruction.
Security concerns
Yesterday, some community users questioned that the repurchase mechanism of TITAN X did not operate effectively and there were contract risks. Community users’ concerns about this project are that TITAN X’s repurchase contract has a repurchase limit of 80 ETH and does not operate on time.
Odaily found that the projects repurchase operation was not automatically executed by the contract, and still required the project party to manually call the operation through the address it controlled. This is used to initiate the repurchase operation of the contract.
In addition, the security of the contract is not guaranteed. Therefore, there is the possibility of the project party doing evil. After querying the on-chain project, it was found that during the TITANX token crash, the repurchase was interrupted for more than 7 hours.
Later yesterday evening, TITANX founder Jake Sharpe posted on the X platform that he might live broadcast the repurchase and destruction of TITANX. Regarding the repurchase limit, he also responded, saying that the repurchase mechanism has a limit from the beginning to prevent abuse and cultivate a healthy market, and the repurchase limit may be lifted in a few months.
Data on the chain shows that after 7 hours of interruption, the current repurchase address of TITAN X has resumed the repurchase and destruction operation, and there are currently about 4,700 ETH in the address.
After returning to zero, where will you go?
Although buyback and burning have been resumed, TITAN X has lost the trust of the community. DEXTool data shows that the price of TITANX has fallen to zero, and its current price has fallen by about 94% from its highest point.
On-chain data shows that as the price of TITANX drops, the number of transactions on the chain also drops dramatically. Since this token requires mint to be produced, this also means a rapid decline in the number of users.
(Tx quantity of TITANX minting contract)
However, the number of independent token addresses has not decreased significantly. Currently, TITANX has about 2,700 independent addresses, and at its peak, it only had 2,804 independent addresses.
The decrease in on-chain activity has also allowed TITAN X’s casting yield to rebound rapidly. However, TITAN X, which has lost the trust of the community, has many unresolved concerns: Is the contract design of the project safe? Does the project party have Rug capabilities?
In addition, compared with XEN’s grand occasion and number of addresses, TITANX’s on-chain data still lags far behind that of XEN’s early days. XEN once ignited a track, and a large number of imitation disks emerged one after another; and TITANX, which has been optimized in terms of mechanism, currently cannot replicate the success of XEN.
Although TITANX has taken its own step in the experiment of virtual mining machines, at present, TITANX may still have no way to make a comeback. Whether it can regain community confidence, regain popularity and traffic is an almost impossible challenge for TITANX.
