Dear XY Shareholders, XYO Token HODL’ers, and COIN Geohackers -

Today I’m pleased to echo an exciting update on the future of XY, XYO, and COIN.

But before we begin, I’m going to address a few questions you may have, such as…

“Where in the living heck have we been for the past month?

“Why have you been so quiet for some time, Scott?”

“Why have things been so quiet in the world of XY, XYO, and COIN?!”

I’ll tell you why.

But, sorry to disappoint all you conspiracy theorists out there. There’s no scandal or juicy gossip going on behind the scenes.

The entire XY team still works like maniacs. We all live, breathe and eat XY, XYO, and COIN. And Arie still works 12-hour days fueled by a steady supply of Coke Zero and Hostess Donettes.

Anyway, let’s get down to it…

As you may know, we went through a downsizing of our organization, XY — The Persistent Company, on May 29th, 2019. We laid off 42 amazing individuals out of our 80 or so employees at the time. We did this because we needed to do one thing a lot better… and that’s FOCUS.

The very next day, it felt like the wind was taken out of our sails. We encountered a decision point. Honestly, the momentum could’ve gone either way.

But instead of moping around and pointing fingers…

And instead of griping with one another (which gets you nowhere fast)…

We decided to roll up our sleeves and get to work instead.

Nine days later, we launched a new business model around our fast-growing app, COIN. This model centered around delivering more value via premium levels of our COIN app. It’s built on a monthly premium subscription model.

Today, I’m pleased to share some of the results.

Since launching this new business model on June 7, 2019, we have grown to 8,283 paying subscribers of COIN Plus and COIN Pro!

During this time, COIN’s total users grew to 100,022!

These results are phenomenal. Especially considering the sheer amount of crazy things going on during this time.

Look, downsizing an organization, while keeping customers happy is a very serious undertaking. Keeping operations running smoothly is one of many challenges. The hardest challenge centers on managing the mood and attitude of the team (especially your own attitude).

While what we have accomplished since the downsizing is very encouraging, I would like to share something with you that I’m even more excited about.

Today, we announced that we have completed the process of strategically re-organizing our primary business assets into largely-autonomous business units under the XY family.

You can read about this re-organization in Arie’s post here.

In brief, I’ll be taking the reigns of COIN. I’ll be teaming up with John Arana, the genius mind behind COIN, and a good friend of mine. We’ll be working together hand-in-hand on COIN’s future.

John and I have done magical things together before. Nearly 10 years ago, in fact! In the Fall of 2009, John and I built a product that became the biggest driver of growth at Arie’s first company and generated over $50M in less than 18 months.

I’m excited to work closely with him again. My goal is to make COIN a major player in the cryptocurrency market.

I’m not ready to go into the full details of what we’re planning to do with COIN quite yet. But I intend to blow away any expectation you have.

COIN began as an experiment. It was the first app to come out of XY Labs. The goal with COIN centered on two things:

Delivering immediate value to our XYO hardware customers. That is, those who own SentinelX devices and XYO Geomining Kits. We wanted to do this because the XYO Network is still in the early stages of development. We knew it would be some time before users begin seeing rewards for the Bound Witnesses they generate using their XYO Geomining Kits. The second goal centered around making COIN so popular that it would serve as a serious supplier of data in the XYO Network. Because COIN is a mobile app, we knew it would be able to serve as an XYO node (acting as a Sentinel and Bridge component).

We have delivered on both of these goals.

But it’s time to take things to the next level.

COIN has the potential of being a major player in the cryptocurrency industry. And I intend to make this a reality.

Now, with me taking the reigns of COIN, here’s what this means for you…

If you’re an XYO Token HODL’er, and especially for our Founding HODL’ers, this news should also very much excite you.

My passion and excitement around XYO remain the same.

But the fact is, right now XYO needs technical and development resources. Period. They need to continue pushing the limits and shipping code. They need less marketing, less noise, less PR, etc.

Now, I would expect things to be a bit different. You should expect fewer partnership announcements out of XYO. But you should expect more code releases and technology updates and developer adoption. You should see that as a very good thing at this point in time.

The goal with COIN still centers on getting the app into as many hands as possible. And guess what will be integrated into COIN?

That’s right… XYO.

The better COIN does, the better XYO does.

For our COIN Geohackers

For our COIN Geohackers, this means more focus, more communication and better support for you.

Look, I personally feel like we have a lot of trust to regain with our community because we’ve been so quiet lately. I feel it. You probably feel it, too.

Just know this…

My goal is to revamp the fire, the swagger and the excitement around our community of Geohackers.

My goal is to get the momentum going again.

But less talk, more action. Stay tuned.

Thank you to all our fans, XY Shareholders, XYO Token HODL’ers, Founding HODL’ers, and COIN Geohackers!

Warm regards…

And press on!

Scott Scheper

XYO Co-founder & President of COIN

P.S.

Oh, one last thing…

And this is potentially too early to say, but I’m going to say it anyway.

If you’re an XYO Founding HODL’er with an FHR Ethereum Wallet Address, I recommend you hold as much XYO as you can in your FHR Wallet Address now… I’ll provide detail on why you should very soon.

And for those that participated in the XY Reg A+, stay tuned as well. Good things are coming for you, as well.

But that’s all I’m going to say for now!