From an 18-fold increase to zero, TITANX has no way to recover

Original | Odaily

Author | Loopy

! [From 18 times increase to zero, TITANX has no way to return to the sky] (https://piccdn.0daily.com/202310/31092707/gtpb2zcirgrqkvba.jpg!webp)

Remember XEN? In October last year, XEN detonated the crypto market as soon as it was launched, and the number of addresses participating in the project reached millions, which once kept Ethereum’s gas fees high. Ever led the Zero Earth Dog? Analyzing the XEN Team’s Background Doubts".

This past weekend, a project similar to XEN but different from it suddenly exploded in the crypto community in the past two days.

ON OCTOBER 28, THE TITAN X TOKEN WAS RELEASED, AND DEXTOOL DATA SHOWED THAT THE TOKEN HAD A MAXIMUM PRICE INCREASE OF ABOUT 1,800% AFTER ITS LAUNCH. After only one day, the price of TITANX began to plunge sharply, falling by about 94% from its high, and some community users questioned whether the repurchase funds and mechanism were effective and functioning normally.

FROM GOING VIRAL TO NEARING “ZERO”, WHAT HAPPENED TO TITANX? Will there be a recovery in the future? Odaily brings you a detailed explanation.

TITAN X:XEN’s reevolution

How to understand TITAN X? In a nutshell, the mechanics of this project are very simple, almost exactly the same as XEN, which is to spend ETH to mint TITANX.

According to the official documentation, TITAN X has a mechanism called “Virtual Miner”; With the help of virtual mining rigs, users can mine TITANX by staking ETH.

! [From 18 times increase to zero, TITANX has no way to return to the sky] (https://piccdn.0daily.com/202310/31073910/k9y8d5fcg78touj0.png!webp)

In terms of token burning, TITAN X uses a burning 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 BURNED. This mechanism is similar to the XEN “matryoshka” ecology previously introduced by Odaily.

Unlike XEN, TITAN X has designed a mechanism to keep the proceeds to the project party and the project party to buy it back. According to official documentation, only 28% of ETH is used to reward users who stake TITANX tokens, while 62% of ETH is sent to TITAN X contracts for buyback and burn.

Security concerns

Yesterday, some community users questioned that the buyback mechanism of TITAN X did not work effectively and there were contract risks. The concern of the community about this project is that TITAN X’s buyback contract has a buyback cap of 80 ETH and does not work on time.

Odaily found that the project’s repurchase operation is not “automatically” executed by the contract, and still requires the project party to manually call the operation through the address controlled by it. This is used to start the repurchase operation of the contract.

In addition, the security of the contract is also not guaranteed. Therefore, there is a possibility that the project party will do evil. AFTER QUERYING ON-CHAIN PROJECTS, IT WAS FOUND THAT DURING THE TITANX TOKEN CRASH, THE BUYBACK WAS INTERRUPTED FOR MORE THAN 7 HOURS AT ONE POINT.

! [From 18 times increase to zero, TITANX has no way to return to the sky] (https://piccdn.0daily.com/202310/31081535/krztwb2qscwj1aae.png!webp)

Later yesterday, Jake Sharpe, the founder of TITANX, posted on the X platform that he may buy back and burn TITANX live. He also responded to the buyback limit, saying that the buyback mechanism has a limit from the beginning to prevent abuse and foster a healthy market, and the buyback limit may be lifted in a few months.

On-chain data shows that after a 7-hour outage, the current repurchase address of TITAN X has resumed the buyback and burn operation, and there are currently about 4,700 ETH in the address.

After zeroing, where do you go?

ALTHOUGH THE BUYBACK BURN HAS NOW RESUMED, TITAN X HAS LOST THE TRUST OF THE COMMUNITY. DEXTool data shows that the price of TITANX has fallen to “zero”, and its price has now fallen by about 94% from its peak.

! [From 18 times increase to zero, TITANX has no way to return to the sky] (https://piccdn.0daily.com/202310/31090345/ms8ryseb1wz60z67.png!webp)

On-chain data shows that as the price of TITANX has fallen, so has the number of on-chain transactions. Since this token needs to be mint to be produced, this also means a rapid drop in the number of users.

! [From 18 times increase to zero, TITANX has no way to return to the sky] (https://piccdn.0daily.com/202310/31091601/actmx8whtpaxfury.png!webp)

(Tx amount of TITANX minting contract)

HOWEVER, THE NUMBER OF UNIQUE ADDRESSES OF THE TOKEN HAS NOT DECREASED SIGNIFICANTLY, AND TITANX CURRENTLY HAS ABOUT 2,700 UNIQUE ADDRESSES, AND AT ITS PEAK IT WAS ONLY 2,804 UNIQUE ADDRESSES.

The decrease in on-chain activity has also allowed TITAN X’s minting yield to recover rapidly. However, TITAN X, which has lost the trust of the community, has many unrealized concerns: is the contract design of the project safe? Does the project team have the capability of “Rug”?

In addition, compared with the pomp and circumstance of XEN and the number of addresses, there is still a huge gap between the on-chain data of TITANX and the early days of XEN. XEN once “brought fire” to a track, and a large number of “imitation plates” emerged; AND TITANX, WHICH HAS BEEN MECHANICALLY OPTIMIZED, CANNOT REPLICATE THE SUCCESS OF XEN AT PRESENT.

ALTHOUGH TITANX HAS TAKEN ITS OWN STEP IN THE EXPERIMENT OF “VIRTUAL MINING MACHINES”, FOR NOW, TITANX MAY STILL HAVE NO WAY TO RECOVER. Regaining community confidence and regaining popularity and traffic was a near-impossible challenge for TITANX.