Ethereum turns into deflation as XEN Crypto Degens dives into

Nearly half of the Ethereum block space has been consumed by a new project called XEN Crypto causing a drop in network issuance and higher gas prices.

“Users paid nearly $1.8 million in gas fees to interact with the token contract, which has a market capitalization of $500,000,” DeFi analyst ‘@0xfoobar’ reported.

As a result, the supply of Ethereum has decreased since October 8. The Ultrasound.Money dashboard is currently reporting supply growth of -0.41%, which means the asset is becoming a contraction, at least for now.

In the past 24 hours, the XEN Crypto has resulted in the burning of more than 1,300 ETH worth around $1.7 million.

So what is XEN?

XEN is a project created by the “Fair Crypto Foundation”, with the support of Jack Levin, one of the first Googlers working on cloud infrastructure. Ethos aims to empower an individual with a code that starts with a zero supply and has no prior copies, CEX listings, administrative keys, or immutable contracts.

Foobar commented that it “copies a few HEX-like mechanics, but the important thing is that there’s an APY,” suggesting there are some Ponzi-type characteristics.

Launched on October 8, XEN can be claimed, minted or staked and is based on cryptocurrency first principles: self-preservation, transparency, trust through consensus, and unauthorized exchange of value without counterparty risk.

According to the XEN Network dashboard, there have been 369,515 active coins since its inception over the weekend. The total supply is 174 million, and it offers a 20% APY for betting the token. Coinage is free, but it consumes gas, and prices are rising due to the demand for dough for this new token.

Commenting on the impact on Ethereum, Levin said it was bullish, but perhaps not for those who now have to pay more for their transactions.

XEN price reaction

The price of the token pumped to $1 right after its creation, but fell back to $0.0032 according to Coinmarketcap, which I just listed.

It can only be traded on Uniswap at the moment, as there is very little liquidity, and comments are already indicating that it could be a scam. Time will tell if the latest crypto hot cookie has been turned into another scam.

Post-deflationary Ethereum Goes as XEN Crypto Degens Dive In debuts on CryptoPotato.

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