Would you like to buy some PXT2 tokens and create a node on the ProjectX platform? What is ProjectX all about? Is it a good investment? Is it a scam? In this article, we will share information about ProjectX and what you can expect if you decide to invest in this project.
Just like OlympusDAO turned into a giant hit during the early summer of 2021 (which led to lots of projects copying the code and creating similar projects on the different blockchains), Ring Financial started a trend in November 2021, in which they created so-called node projects. These were all inspired by the giant success of StrongBlock, and that is most likely where they got the idea of using the “node” word.
Ring Financial turned into a disaster, but it was forked by many others. Most of the forks quickly discovered that the Ring Financial code was full of bugs and errors, so they all had to go back to basics and rewrite the code, modify the code, and also change the reward structures, and much more. The most famous fork is probably Thor Financial, a project that has clearly proved that it is serious and that they are delivering on their promises.
Some words about ProjectX
ProjectX launched just before Christmas, and their call was to become another “node” project. In their introduction post on Medium they wrote the following:
Actually, scratch that, we love Passive Income, and you can tell because I just capitalized it to make it extra important. Twice.
Project X is a group of degenerate apes, interdimensional omniscients, meany-head galactic AIs, superheroes, and Patrick (he’s in charge).
Is Project X part of Fork Season? Yes. Yes it is.
Have we done something innovative, useful, and primed for longevity? We believe we have.
Welcome to ProjectX (Medium article)
To be honest, this introduction doesn’t seem like the most “professional” and “serious” introduction in history, but in crypto, anything is possible, and everything seems to be allowed.
Just like Thor Financial, PowerNodes, Comb Financial, and other node projects, ProjectX is aiming to grow the size of its treasury through investments in other protocols. These investments will then serve as a foundation that will be used to give value to ProjectX. Of course, if the projects that ProjectX invests in will fall apart, then so will the treasury of ProjectX (just like it will have a very bad impact on the other node projects).
How is ProjectX growing their treasury?
ProjectX is currently not using any sort of claiming tax (which makes it different from THOR and POWER). Instead, they are using a sell tax, meaning that users who sell their tokens will pay a tax in the process somewhere between 5% and 30% (currently, it is 18%).
ProjectX also owns a part of the liquidity for the PXT2-AVAX pair on TraderJoe, meaning that they also collect fees gathered through trading activities on the exchange.
The treasury will also grow as the investments made by the project grow in value.
As of January 2022, ProjectX has invested in HectorDAO and Wonderland.
Besides this, whenever someone creates a node (costing 10 PXT2), those tokens are moved in the following directions:
- 5 $PXT will transfer to the Rewards Pool
- 2 $PXT will transfer to the Treasury, swapped to $AVAX
- 2 $PXT will transfer to the Smoothing Reserve, 50:50 split between $PXT & $AVAX
- 1 $PXT will transfer to the Operations Pool, swapped to $AVAX
The smoothing reserve is a special ProjectX concept. It is their rainy-dash stash, which will be used for price stabilization, bonus rewards, or to make special investments when such opportunities come along.
What is the price of a ProjectX node? What are the rewards?
- The price of one ProjectX node is currently: 10 PXT2 tokens
- The daily reward per node is: 0.17 PXT2 (it takes 59 days to get your initial investment in return).
The ProjectX team has made it easier to create several nodes, meaning that you can create 10 nodes at the same time with the same transaction (if you have 100 PXT2 tokens in your wallet). Considering that ProjectX is running on Avalanche, transactions are cheap and quick, making it affordable to create tens of nodes (if you have the funds available to do so).
The original price of a PXT token was $0.4. After the release of version 2 on January 20th, the price started on $6.5 and has been moving between $10 and $20 since then.
Should you invest in ProjectX?
To be honest, we consider this to be a quite high-risk investment. The project lacks the professionalism and clear communication that we so much like in Thor Financial. Their articles are written in a cool way, but they remind us of the communication style used by Jade Protocol, and that isn’t necessarily a positive thing.
ProjectX has developed its own protocol, with its own style, and there are clearly some developers actually working hard to make it better. They have already released a v2 of the protocol, which means that they discovered things in v1 that had to be changed. This is also a positive thing.
Once again, nodes are in the wind and while rebase token projects are currently fighting hard to survive, the node projects are stretching for the moon. There are already lots of node projects and many more will come. Some will come to bless you and create a handsome stream of passive income to its investors, while other projects are simply there to steal the investors’ money.
We have also been active in the ProjectX discord, and currently, it seems as if the involvement of the team/moderators is quite “lousy.” In other words, community members chat and discuss price movements and similar stuff, but the real questions dealing with the actual developments of the protocol, the future, the investments, and questions that only can be answered by those with true insight into the project, are seldom answered. Maybe we need some more patience?!
The baseline is -> VERY HIGH RISK. Only invest what you can afford to lose!
