Xen Crypto Scam?

Welcome back to the channel. I hope you all are having a great day. So today we want to talk about Zen, the crypto scam, or is it? What is it exactly? So, uh, if you don't know, there's a new cryptocurrency project that's been picking up a lot of steam, getting a lot of hype behind it, and it's called Zen. A lot of the HEX community, PulseChain community gravitate to the XIN product because you mint cryptocurrencies, and I think it has some similar components and at least ideas or principles that the, the HEX and Pulse community has embraced— decentralization, lack of middlemen. Hopefully big gains, and even in some of its, the genesis of some of the products, even getting a lot of free cryptocurrency. Free is something that happens a lot in cryptocurrency. A lot of bases of many projects are based on airdrops and free coins. Bitcoin in the beginning, a lot of it given away free. And it's very interesting that so many in crypto then kind of gravitate to, oh, we don't want handouts, we don't want free anything, we don't want free this or that. If it's free, it's not worth anything. When so much of the basis of cryptocurrency has been this very socialist, communistic thing. So I find that hilarious. But anyway, we want to talk today about Uh, Zen, is it a scam, right? This is an exercise we do with a lot of projects because scam is a word that's very loosely, loosely thrown around in the cryptocurrency community. And similar to the early days of HEX, um, you know, Richard Heart was under great scrutiny, uh, won Scammer of the Year 2 times, I think, accused of running elaborate scam And right, you know, all this, these things went on and he was, he was under the radar quite a bit. And it seems that the Zen Crypto project has escaped that, but not from us. So we, so we're going to take a deep dive into, into it today, uh, and we're going to come up with in an unbiased way, is Zen a scam, right? We're going to look at the good, the bad, and the ugly, try to make a determination about Zen. All right. So first, everything kind of has this founder it gravitates around. And in this particular case, we're looking at, uh, a person by the name of Jack Levine. Now, to our understanding, I think he was the 21st Google employee, you know, at the beginning of Google, right? And so, um, then he was known for some other projects, uh, ImageShack. I think I vaguely remember that product, uh, if I'm not mistaken. I think it was like one of those image uploading sites or something. Could be wrong. But that was kind of his claim to fame, early Bitcoin holder and so on. And, you know, I'm not sure what his net worth is, but he doesn't seem like he's probably concerned about money, right? And looking for money. So I'm I'm assuming that he's probably in pretty darn good shape financially, right? And this is kind of a very similar characteristic to how Richard Heart was described, right? A self-made millionaire, billionaire, et cetera. So I think that's important to success of projects because if you're on your last dime or you're on your last buck, I think that that thing can create motivation for people to— But anyway, Let's look at first some of the accusations and see if we can make any, any, any, any sense out of them. And as I said, I was going to come in this with a non-biased viewpoint. I do have to say this though, my one gripe, my one issue, my one issue with the product, as in that I'll go ahead and put on the table, and that is that The proof of participation model, I, I believe we were the first project to coin that, the BitcoinNYK project, and we did it, I believe, back in late 2018. Now, my only problem with Zen is they are using that as the algorithm used on Ethereum. We didn't start on Ethereum, so when it's a different blockchain, different protocol, uh, obviously, you know, it's not going to work the same, in the same, you know, way that it'll work on another blockchain. But my only issue was that proof of participation, I, you know, me personally, I had a very clear view of that type of idea. And in my idea, it was your value was actually created by just participating in the product, in the project, right? Now that's a similar thing to what's happening, uh, with Zen, right? In principle, but probably not in practice. And what I mean is that, you know, you got to recall people are paying a large sum of money. They've, in the last 24 hours, they spent well over $2 million, think like $2.6 million, moving towards $3 million in 24 hours to be able to get this cryptocurrency. Right, so my overall point is if you got to spend $2-3 million to obtain a cryptocurrency, uh, it is not participation in my opinion so much that's creating that coin, right? That's just me, uh, but with that said, that's my only problem with it overall. Let's address some of the other, um, things out there about XEN, uh, that's coming, you know, across the crypto space and, uh, see, you know, where we end up with, you know, obviously with any type of product launching on this scale, uh, with this type of, uh, attention hype behind it. You're gonna have, uh, many detractors. You're gonna have many, uh, people against it, right? It's gonna all balance out. As many people love it, you're gonna produce some people who have a problem with it, right? And so, um, one thing that's out there about Zen that people are going to have a problem with is that whereas you can get it free, people with higher mental aptitudes can create bots, right? And what do these bots do, right? It can imbalance a participatory system, uh, product economy, right? Because now Somebody can go and create these bots all day that, you know, just come in and create a, you know, a bunch of this free Zen to dump it on your heads. Now granted, you have to pay these Ethereum gas fees, and this is the bittersweet thing about the Ethereum gas fees. Whereas you have to pay these abhorrent amounts of money to obtain Zen in these gas fees on Ethereum, It's also kind of protection against people who can with bots and so on, or people who just got a lot of money who, you know, mean to take control of the network. One ring rules them all, which is a problem in many of the products, the projects. Um, it kind of acts as a barrier against that, right? Because now these guys are, uh, basically minting against themselves, is to say they're competing against the gas fees and, uh, they're not careful, they could probably end up spending a ton of money, more than the coin's worth. Coin could end up crashing, uh, at some point losing 90% of its value and so on and so forth, right? We know how that goes. Uh, real quick, let me circle back to proof of participation model. My other gripe that I had with is in crypto, uh, simply because there's just a very important thing I left out. But again, this is the only thing I had with it. So All the other things that are coming up, that's not really a problem for me, as I'll explain. But if you can look here on our system, right, you can see where I'm receiving the BitcoinMYK cryptocurrency for logging in and updating my profile, right? Using a type of social media integrated into the cryptocurrency token that, uh, um, you know, allows me to participate strictly based on what I do, right? The cryptocurrency itself has moved over to the HY blockchain. I mean, the fees are so abnormally low, uh, you, you, you're pretty much, uh, really it's free transaction. And the reason I say that is because every— you receive these things called resource credits, right, that keep recharging themselves every 24 hours, right? So you don't have to ever in a sense pay for gas and things like that. Um, when you open up an account, it's like a buck or something, a buck or not even $2. But even that, they— we— the network has many systems you can obtain wallets free. And so for the most part, this is a blockchain that's done fairly well, right? There's quite a bit of people, I think about 4 million users totally. And it does this without having to deal with high gas fees. It has fast transactions. And security-wise, pretty high up there, does pretty good. Maybe not quite all the way there as Ethereum, but a pretty secure network nonetheless, right? Some of the early events that happened with Justin Sun when they forked Hive from Steem, The different protocols in place have made it so that's become difficult, almost impossible for that to ever happen again, right? There are many protocols in place now that will make it hard for somebody to just come in there with a lot of money and buy out the chain, right? And, and buy the, uh, what they call the witnesses, uh, uh, to, to control the block production, right? So almost impossible to do that now. So I would, I would put the security bar pretty darn high community bar pretty darn strong. So checking all the boxes, that, uh, is, is the concern of this. But, uh, as you can see, basically you're actually participating in a product and, and, uh, your value comes from that purely, right? It doesn't require you to compete in ridiculous gas fees where very wealthy people are gonna, you know, end up, you know, in every case able to mint more coins and control more of the network than you. And every every case, right? And so that harms a participatory economy, right? There are some things we have to accept, but I'm just saying, uh, our idea of proof of participation, something totally different, and I think better. But let's get on with the Zen as far as the, uh, the, the ideas— is it a scam or not? So when we get to the bot situation, right? We got these people creating all these bots, which is a big concern, right? You're also going to have, as far as use cases, I think it was K4 Crypto, K2 Crypto, I think that's what he calls himself, uh, kind of well-known Pulse Hex community guy. He was saying that this type of system, as far as use case, just produces the idea you're just sitting at your computer all day just kind of trying to create bots to mint these cryptocurrencies and so on and so forth, right? And I kind of agree with that in, in that, uh, you know, overall, as far as the nature of the cryptocurrency, it does seem it's a race for that. And then it becomes to what end, right? Just try to generate as much as you can. What is the actual use and, and so on and so forth for this cryptocurrency? And Does it become stable at any point to where it's useful? Because a lot of mistakes that happen with currencies is people want them to be assets and keep going up in value, but then they become useless because nobody wants to sell, uh, an asset that gains value, right? So if you never sell something, just imagine you just hold something in your vault forever, um, then you're never going to be able to use it, right? Uh, so at some point it has to have an actual use, and what is that use, right? Uh, even if we look at something like HEX, yes, it's true that HEX had a similar genesis, but if you look at HEX right now, the prices are fairly, you know, hovering around 3 cents. It's not doing these ridiculous ups and down movements like it was. Not that it might not go back to it, but it's not doing it right now. And it might not quite do it like that in the future. But Zen, because you're, it's almost like this infinite supply of minting, or I'm sorry, I correct that. At this stage, it is going to correct itself, I believe in 8 years where you're gonna mint less and less and less, right? And maybe that's the idea for it to become stable at that time. Um, but then, um, you know, the, the problem I think was addressed is that does it train that type of behavior, which some might say is undesirable behavior. The next accusation that's been, been going out there that we can cover real quick is, uh, that, uh, Jack Levine himself could just be creating a bunch of bots and You know, uh, he presents the idea of it's a fair start, that it's fair crypto. That's supposed to be the idea of it, that everybody kind of has the— are on the same playing field. But then, um, if he's created, you know, uh, you know, dozens upon dozens of these bots that can come in very early and get a bunch of these cryptocurrencies, then maybe it's not so fair, right? And again, these aren't my thoughts or accusations. These are just things that are going on in the community, and we're going to try to address them one by one and try to, uh, you know, see what is, what is real, what is just something put out there, and if we don't know, um, what else is happening with that besides the bot thing. Um, all right, where was I? Got distracted. Have a bunch of kids on their four-wheelers come through my my yard every weekend. Okay, we were on, is XANA a scam? Okay, so what we covered about the bots, right? The bots, um, that you could create a ton of these bots and it's kind of encouraging this behavior of, uh, just, you know, keep creating these tokens so you can, you can have more than everybody else. Okay, what's the use case behind this? Um, You know, I think, uh, when we consider is it a scam, uh, the code is available, right, uh, to be inspected. It, it's nothing here that really looks like a, uh, a scam. If it is, please mention it to me, you know, in the comments section. I can't see that as a scam. Is it the best idea for a project? Um, you know, coming from the camp of the citizen's dividend, where I believe that, uh, and this is— this isn't just my words, any economist would tell you this, right? This is just— this is just the facts. The best type of economy is a well-distributed economy, right? If you have any type of economy like what we have in cryptocurrency where 1% of the Bitcoin network owns 87% of the network. Those are bad economies. I'm sorry, but this narrative that cryptocurrency is going to save us all, they got to do a much better job of looking at those numbers, right? And, and they always talk about, well, in the future they will get better. What about just create products that goal is to make that better, to make those numbers better? Since we can manufacture all of these types of algorithms and protocols, manufacture one that encourages more and more cryptocurrency getting widespread out to different people, right? Now, if you're going to launch a product like this, I'm not saying it's a scam, but if people keep launching it on Ethereum, I'm going to start to think it's a scam. Because if you want wide mass adoption and all those things, Ethereum is going to be the worst place to launch, you know, launch a project. On, right? It is inefficient. Uh, you know, even with the Zen launch yesterday, you know, a lot of people had difficulty even, uh, being able to mint their coins, right? Which, you know, created less opportunity for them. Now, interesting enough, my understanding is that some people got paid less today and got more of the coin today, and that's a good thing, right? That's, that's a good thing. That kind of shakes up the idea of it not being fair distribution, right, to make it more fair. But although I don't see a scam here, I do think that this project is, uh, it's got a lot of problems with it. And, uh, I don't think it's intentional on Jack Levine's part. Um, you know, people tend to stick to like the top cryptos, like Bitcoin and Ethereum, you know, and so on, when they do projects for security reasons. I get that, but we have to begin to compartmentalize what the purpose of our cryptocurrencies are for. For example, if, if the purpose of your cryptocurrency is to get a lot of people in for mass adoption, then we should compartmentalize that from security. And I'm not saying look the other way on security. All I'm saying is that we should arrange our priorities based on the use of the cryptocurrency, right? You know, this is a free cryptocurrency, right? There is security in that, getting in, uh, and not having to risk your money, right? But now Ethereum does make it to where you're risking money because of the gas fees. But this could have been done on Polygon. It could have been done on, uh, Hive, right? These like low fee to free blockchains. But why was it done on Ethereum? It was done on Ethereum for money, right? And, and the thing is this, uh, for the overall health of cryptocurrency, we might need to— I'm not saying put money to the side, but all I'm saying is have prioritized it to where you can make money and cover all these bases and, and pick the projects that, uh, balance out security. What's going to be more user-friendly to attract a mass, a lot of people, mass people in? Because I could tell you right off the bat, Ethereum is not going to be that. We know that. We know the only people who are minting these wallets are going to be, uh, people who are somewhat tech savvy already, developers, uh, people who have been in the space a long time. All of the people who are outside the box of new people and new adoption, right? So, you know, let's keep that in mind. No, Zen's not a scam by any means, right? And it's gonna bring a few more people in, right? It's gonna give a few more people a cryptocurrency opportunity that probably didn't get it before. But is it the best well-thought-out crypto project, uh, that, you know, people are getting excited about, that I kind of was excited about but not so much now? No, it's not that. And, uh, right, it might very well outperform in this bear market many cryptocurrencies out there right now. It's the only thing of excitement that is clear, but it's certainly not, uh, gonna save the world, you know, by any means. It's like, I don't think it's gonna even get close to that, but you might make a pretty good return on it. I don't doubt that, but many cryptocurrency projects can do that and have done that. We're trying to lift the human spirit, get to the next level, and get all these people in out there in the crypto space. Uh, now, uh, are there other projects I think could do this better that will do it? But sure, it is Bitcoin MYKR project would do it 100 times better, right? In its own time, right? That's going to take time because, uh, your Bitcoin MYKR, although it makes more sense from the hype part of the cryptocurrency space and trying to make a lot of money in the beginning, it's not going to be that, right? So Zen is kind of explained like it's the same way that after about 8 years is probably gonna really— when it's gonna take root. But the success of Zen's launch is based on people can make a lot of money. These people are hoping for 50x, 100x, you know, games and it's being launched on Ethereum where people got the money. Now again, that's, that's great for the people who are in cryptocurrency already trying to make money, bad for the people who are on the outside, right? So the only thing I can guess is those people coming in cryptocurrency simply buying it, right? Buying that cryptocurrency, which kind of creates a still an unfair, uh, playing field for the developer community and the crypto-savvy community over normal people. What I'm saying is projects like Bitcoin MYK that have these very simple user interfaces might not be quite as secure as Ethereum running on Hive, but Hive does have a great amount of security, but might not be quite there. But it's a free cryptocurrency, right? And it's free without the risk of gas fees, right? So when you, when you balance everything and you consider all things are considered, that's how we have to look at the picture, guys, right? So I think my next video I might do a head, a heads up comparison between Zen and Bitcoin MYK and, uh, um, and, and see what we get there. I think Bitcoin MYK is going to outperform it in many of these areas, as I think, I think you all get to see. But no, it's not a scam. And, uh, um, there is some excitement for the project, just not as much as I had before in the product. Uh, um, a similar thing happened with me with HEX. I was very excited about HEX. Richard Heart comes in with this Robin Hood-like theme, actually written on his, on his site. And as we get going with HEX, what is HEX? It's just more of the same. It's just more of the same, uh, distribution, uneven distribution more of the 87% of the networks probably owned by about 1 to 3% of the people, right? That sort of thing. And that's the thing we're trying to avoid. That's what's going to get the most people in. And that's what most people are looking for. You know, the reason we've left fiat currencies is because the government is what the people in cryptocurrency at the top are. And those are the people who can print as much money as they want and dump it on our heads, right? The government does it through inflation and printing money. Crypto does it through printing more coins and the elite and the wealthy having the most of the coins and dumping them on everybody. To get out of that system, as most, most of us aren't in that system and most of us aren't in that class, to stop that, we have to stop supporting projects that promote that. And it's going to be to your best interest in the end and support the projects that create the widespread distribution, whereas people who have a little mental aptitude could come in, use these systems, mint their cryptocurrency without this big learning curve. The, the big learning curve is the unfair advantage that the people have in cryptocurrency, uh, over these beginnings of the launches and so on and so forth. Right, so I don't think it's a scam. You all could tell me if you think it's a scam and why you think it's a scam. Some people actually mentioned rug pulls. Uh, I don't think Jack Levine is a person who's desperate for money, needs money. And I don't— you know, when people get a certain financial status, uh, money is not always their number one motivation. So I don't think it has to be that. I think— and maybe he will evolve this project, and I would definitely like to have a conversation with him in tell him about what the real proof of participation model was, which was our model. Uh, but I don't think he's of any ill will to cryptocurrency or ill intent. I think he really is using the tools he has to his disposal to make it useful to people. But I think the mistake is he's going in the same direction they've all went before. And, uh, so this isn't a unique project, as he's admitted to not being unique, but BitcoinNYK is, and we need to get on levels like that. But that's all I want to say in this video. The next video will be a head-to-head between Bitcoin, NYK, and Zen, so we can go specifically in the details. But that's all I want to say in this video. Until next time, as always, take care of yourselves and each other.