Disclaimer: This is not intended as investment advice in any form.
Investing in a new crypto token can be a major dilemma; however, it offers both opportunities and challenges. Anyone who’s been following cryptocurrency knows the risks of investing in one. But in case you don’t know, let me summarize the situation for you.
New crypto tokens often have significant growth potential, especially if the project gains traction and adoption. However, high volatility frequently goes hand in hand with high returns.
At the same time, the crypto space has seen its fair share of scams. Investors in new tokens are particularly vulnerable to Ponzi schemes, exit scams, and pump-and-dump schemes.
However, that is not the whole scene. There have been crypto tokens that have proven to be fruitful for early investors.
The 0x0 is an AI smart contract token based on the Ethereum blockchain network. Today, we’re going to take a deep dive into the different features of the 0x0 token, its features, and our prediction on the future of this token.
What is 0x0?
The 0x0 token is positioned as a comprehensive platform. Its aim is to enhance security and reliability within the blockchain and cryptocurrency ecosystems. With the inclusion of AI Auditor and Privacy DEX, 0x0 is blending some new technologies.
The first thing that caught my eye about 0x0 is that it promises to redistribute 100 percent of its revenues to 0x0 token holders. It is unclear how 0x0 will implement this, but if they do, that is a huge plus for the owners of the token.
Currently, you can trade and buy 0x0 tokens on Uniswap v2, which is within Ethereum.
Now, let’s talk about some of the features that 0x0 is promising and using currently.
It’s likely that you haven’t heard crypto enthusiasts use the term AI auditor. That’s because it’s an entirely new technology that 0x0 is bringing into their system. So, what is it?
An AI smart contract auditor is like a super-smart detective for the crypto world. It uses computer algorithms to dig into smart contracts and find any possible weak spots or problems that could turn into scams or security headaches.
So, here’s how it works: This auditor uses machine learning to spot patterns and weird stuff in the code. When it spots something fishy, it immediately flags the transaction and alerts the system.
Now, let’s talk about why this kind of quick, free audit is so valuable for crypto users.
First off, it’s super quick, and it’s free. 0x0 won’t charge you a dime for using this. Traditional contract audits, which are done by humans, are often slow and can burn a hole in your pocket.
It also keeps you safe in the wild west of DeFi (that’s Decentralized Finance, by the way). You can trust that the smart contract you’re dealing with is legit and secure.
The first words you’ll see on oxo’s website are security and privacy, so it’s no surprise that they feature a privacy mixer.
If you’re not familiar, a privacy mixer, sometimes called a coin mixer or coin tumbler, is a tool that keeps your cryptocurrency transactions on the down-low. Here’s how you use it:
Imagine you want to send some crypto, but you don’t want anyone snooping around and figuring out where it came from. You send your cryptocurrency to the privacy mixer, and it gets mixed in with other transactions in a totally random and decentralized way. This clever mixing makes it incredibly challenging for anyone to trace where the funds originally came from, adding a strong layer of privacy and anonymity to your transaction.
Now, how can you benefit from a privacy mixer?
First off, it gives you extra privacy and anonymity for your crypto dealings.
Plus, it boosts security and makes your coins more fungible, which means they’re more interchangeable and less traceable.
And it’s harder for bad actors to mess with, making it a safer way to mix your coins compared to those centralized mixers.
0x0’s privacy mixer has a slick feature called “flashloan.”
Imagine you spot a chance to make a quick profit by exploiting price differences in various crypto markets. That’s called arbitrage, and it’s like the crypto version of buying low and selling high.
With the flashloan feature, you can temporarily borrow a substantial amount of cryptocurrency from the privacy mixer, use it for an arbitrage trade, and then swiftly pay back the borrowed amount with interest—all in one seamless transaction.
What’s particularly cool is that you don’t even need to technically own the cryptocurrency you’re borrowing—it’s like a quick loan from the privacy mixer.
However, if the arbitrage trade isn’t profitable, the contract steps in and stops the borrowing process, ensuring the privacy mixer’s safety and the protection of your funds.
Imagine a privacy-focused DEX aggregator as your all-in-one tool for crypto trading. It’s like a crypto exchange platform, but with extra privacy and security perks built right in.
If you don’t know what a DEX is, it’s short for decentralized exchanges. They’re the go-to spots for trading crypto because they ditch the need for a central authority while adding an extra layer of security and privacy.
So, how does this privacy DEX aggregator work?
Well, it gathers liquidity (that’s the money you can use for trading) from various DEXs and puts it all together in one place. This means you get to trade a bunch of different cryptocurrencies and tap into various trading opportunities without having to jump between different exchanges.
This tool uses some high-tech tricks like coin mixing (think of it as shuffling your crypto) and encryption (making your data unreadable to nosy folks) to keep your transactions completely private and rock-solid secure.
It doesn’t take a crypto enthusiast to understand why you should care about privacy, especially when your transactions are being done on an open platform like this.
When you trade using a privacy DEX aggregator, you’re keeping your transactions private. Your trade history and identity stay under wraps. This matters, especially if you’re big on privacy and don’t want others snooping into your transaction details.
You also get to access a much larger variety of trading pairs and opportunities than you would on a single DEX. By gathering liquidity from multiple DEXs, the privacy DEX aggregator gives you tons of flexibility and choices when it comes to trading cryptocurrencies.
By this point, anyone in the crypto market is aware of rug-pulling and pump-and-dump schemes. Remember OneCoin?
If you don’t, just make one Google search, and you’ll understand just how much risk these schemes can pose, especially to unsuspecting buyers trying to get into crypto.
Let me talk about how these schemes work.
Rug-pulling scams have a painful history in the crypto world, dating back to the early days of DeFi. Notable cases like the SushiSwap vampire attack and the FairWin Ponzi scheme serve as stark reminders of the risks associated with trusting unverified projects.
Pump-and-dump schemes are another well-known hustle not exclusive to cryptocurrencies, but they’ve found a fertile breeding ground in the crypto market.
Pump-and-dumpers start a buzz around a low-cap cryptocurrency, often through social media platforms. As excitement grows, unsuspecting investors fear missing out (FOMO) on potential gains, which inevitably drives up the token’s price. Once the price reaches a high enough level, schemers swiftly sell off their holdings.
Now, how does the anti-rug AI come into the picture?
0x0 is currently developing an AI-powered anti-rug bot, a cutting-edge tool designed to shield DeFi enthusiasts from scams. Remember that this is not in the works yet.
Its approach involves using advanced algorithms to scrutinize transactions and spot any suspicious activities, like setting unusually high taxes or removing liquidity.
If it identifies something fishy, the bot jumps in ahead of the transaction, preventing users from falling victim to a rug pull. Basically, it’ll stop you, the user, from making any shady transactions before you can fall prey.
How can this tool help? Here’s how:
- Enhanced Security: DeFi is riddled with scams, and these can lead to substantial financial losses for users. The AI anti-scam bot offers an extra layer of security.
- Efficiency: Traditional scam detection methods often rely on manual analysis, which is slow and can be prone to errors. In contrast, the AI anti-rug bot uses cutting-edge algorithms to examine transactions in real-time.
However, it’s essential to approach this tool with a critical eye. The claim of providing an added layer of security for DeFi users is ambitious. While the intention to protect users is commendable, the effectiveness of the bot in accurately identifying all potential scams remains to be seen.
AI Developer Hub
The AI developer hub lets 0x0 users deploy their own custom smart contracts. Here’s why it’s useful.
If you’re not a coder, no problem. The AI developer hub simplifies the process of deploying custom smart contracts. You don’t have to hire a coder or dive into coding yourself. Just put in the contract parameters you want and let the AI handle the heavy lifting.
Additionally, auditing and security protocols thoroughly examine and secure any contracts created in this hub. That’s a big deal in the world of DeFi, where scams and frauds can turn into nightmares for investors and users.
What You Should Look Out For in 0x0
0x0 offers a feature where holders can supposedly earn passive income through the redistribution of utility fees generated by the protocol. These fees are supposedly handed out to token holders.
However, about 10.875% of the total token supply goes into a mysterious burn address.
If the protocol doesn’t generate substantial utility fees, the promised passive income may be minimal or nonexistent. The allocation of nearly 11% of the total token supply to a burn address might raise eyebrows. Such a large allocation to a burn address can affect the overall supply and potentially impact the token’s value.
While the notion of redistributing utility fees to token holders sounds attractive, 0x0 does not delve into how this redistribution is sustained or whether it’s sustainable in the long run. It lacks clear details on how these utility fees are generated or the actual utility of the token within the ecosystem.
The 0x0 project also boasts about its buyback and burn strategy, which they claim has reduced the token supply by over 10.8% since the project began. They intend to keep this strategy going using the marketing wallet, allowing the team to keep buying and burning tokens to crank up the deflation rate.
They also plan to take things up a notch by slapping a little tax on every token that’s launched through the 0x0 developer hub. This tax is supposed to fund more buybacks and burns, with the aim of boosting the deflation rate.
The buyback and burn strategy can be exploited by project teams to create the illusion of scarcity and inflate token prices temporarily. Which seems awfully similar to a lot of scam projects.
While imposing a tax on token launches may seem like a way to fund buybacks, it can also discourage developers and projects from using the 0x0 developer hub. Without clear documentation and openness about the buybacks and burns, users may question the legitimacy of the process.
The 0x0 project has another ambitious plan: they aim to fund ETH dividends for users using the fees generated from their privacy mixer and DEX aggregator.
These dividends will pile up on a dashboard, where users can keep tabs on their earnings and claim their share of the profits. It’s pitched as a way for 0x0 users to earn ETH passively just by using the platform’s services.
Offering ETH dividends can be a draw for users, as it provides a chance to earn cryptocurrency without actively trading or investing. At the same time, users will be more inclined to use the privacy mixer and DEX aggregator within the 0x0 ecosystem to earn dividends, boosting the platform’s adoption and utility.
All in all, it has the usual risks of a new crypto token trying to break into the scene. But the features 0x0 has promised are, to say the very least, quite interesting and innovative. It’s only time before anyone can tell where 0x0 will go. I’ll certainly keep a close eye.