Blockchain Hacker HQ

1133 Columbia St.

Second Floor

San Diego, CA 92101

From:

Scott Scheper

email: scott@xyo.network

telegram: sscheper

Thursday, 9:10 a.m.

May 17th, 2018

Dear members of the XYO Community,

Welcome to our movement!

The mission?

It’s quite simple, really: Create a revolution in location technology by shifting from a system that is controlled by a centralized body (GPS) to a system that is open, decentralized and built on a deterministic blockchain.

Look, I’m not sure how you arrived here.

Maybe you heard about us through the press coverage we’ve received. Or you’ve seen us on a race car. Maybe a friend told you about us or we’ve come onto your radar through the recent news of Charlie Shrem, Founder of the Bitcoin Foundation, joining our cause…

But no matter.

However, you got here, and whatever fashion you’re in, I can say, (in my unbiased opinon)…

You’ve happened upon the most ambitious blockchain project of 2018.

And by the time you’re finished reading this, you’ll see why.

Since 8:07am yesterday I have been working on content of what you’re about to read. I decided to take a break from managing the exciting rise of XYO and decided to NOT go into our office until this is published. What makes blockchain projects special is how much the community’s involvement matters. And since its been a little while, I think it’s about time to get you up to speed on the exciting things to come in the world of XYO!

I’m going to do my best to take you through these crazy past few months and give you a teeny-tiny glimpse of what we’ve been up to. Then I’ll detail where we’re going and how we plan to get there. I’m going to wrap things up by talking about cryptomoniez and Moon-Lambo’s, of course!

Just kidding, but seriously…

So sit back, relax and get ready to gorge your brains out and enter the world of the XYO Network.

Disclaimer: Unless you are obsessed with blockchain, cryptocurrency and/or IoT, I recommend you NOT read any further. For those who are, let’s get started.

Getting You Up To Speed

XY, the company that is jumpstarting the XY Oracle Network (“XYO Network”), has been in the location/IoT hardware space since 2012. You can view our Roadmap on our website, but here’s a quick run-through of the latest.

XY, The IoT/Location Hardware Company Jump-starting the XYO Network

First, we successfully launched the XYO Token Sale (as you probably already know!)

The attitude I had at the time of launching our XYO Project was that of gratitude. I truly believe there’s not many people that have the opportunity to launch a cryptocurrency project, especially in the renaissance that I believe we’re in. At the age of 80, there aren’t going to be that many people out there that have lived through the experience of launching a blockchain project. I, and our team, are some of the lucky few who have!

But as anticipated, and what every entrepreneur knows from years of launching and running startups, the experience of launching a blockchain project does not come without angst, sleepless nights and second-guessing oneself.

While it’s been definitely one of the most fun and exciting things I’ve ever worked on and built with a team in my life, during the early part of our token sale, things seemed pretty grim.

This should help illustrate why:

If there ever was a perfectly bad time to launch a new cryptocurrency project it was the EXACT moment we scheduled the launch of the XYO Token Sale!

This time was the post-crypto-correction, which really turned into a post-crypto-freefall. We launched pretty much right in-between the Fear and Capitulation phase the market goes through when the price declines. This meant, for a good month or so during our token sale, you know the “prime-time” moment where people say you sell the majority of your tokens, the entire cryptocurrency market was in the “Despair” phase.

Splendid!

Many projects canceled their launch plans and quietly tiptoed away in the middle of the night. We even had unsolicited LinkedIn messages from ICO “Expert” Advisors telling us to cancel our plans just days before our sale was set to begin.

But here’s the thing. We’ve been through this type of thing before. We know the story script. In the back of my mind, I expected something like this was going to happen and we committed to run our token sale, the same way we intend to run our XYO Project: by doing things the old way, the old fashion way: you know, actually producing something that sustains itself profitably, attracts an amazing community and doesn’t rely on institutional private fund money to survive? (Unheard of in the world of blockchain projects, I know!)

Yet Arie, Markus and I knew, given our intimate experience with this type of thing (running running startups): the golden rule is that everything is earned and nothing is easy.

But the good thing about new technologies and exciting fields it that things can turn around for the better just as fast as they can downwards for the worse.

As usual, our team kept coming to work every day. Arie and I continued our illustrious career of having no lives and clocking in 12 hour+ days on Saturdays and Sundays.

When you spend months working seven days a week on something that isn’t going so hot, things can get pretty depressing. But when there’s actually a feeling that’s even worse than that: it’s called clocking in 7-day weeks while ETH is in the $300's!

We lived it!

We kept grinding, and fortunately, when the cryptocurrency market began to recover, (Mid-Late April), we were primed and ready because our marketing machine was just getting started.

A quick take on what to look for in blockchain projects

You know it when you see it. When you land on a landing-page of the latest, greatest cryptocurrency project that has the biggest named firms backing them, the founder of Uber on the Advisory team, the cleanest PR campaign in history and Institutional Venture Firm ABCD backing them. A project that just looks too good to be true.

Believe it or not, when looking into whether or not you want to participate in a new blockchain project, I believe you should pay attention to the ones that have imperfections. You should look for battle scars. You should look for companies backed by a close team that’s been through it all. The ups, the downs, the despair, the victories, the triumphs. The ones that are still kicking despite their third, fourth or fifth setback. Those are the ones I’d recommend you pay attention to. Because every new venture or company has its ugly parts; if you can’t find it, then they’re not revealing the whole story.

On Cockroaches (and making your PR Person crazy!)

Apparently the most likely animals to be left alive after a nuclear war are cockroaches, because they’re so hard to kill. That’s what you want to be as a startup, initially. Instead of a beautiful but fragile flower that needs to have its stem in a plastic tube to support itself, better to be small, ugly, and indestructible. — Paul Graham, The Hacker’s Guide to Investors

In brief, if you want to get a glimpse of the real entrepreneurs and blockchain projects worth your time, I argue that you should look for the cockroaches who never die and refuse to quit.

For the team behind the XYO Network, I believe this to be the case. Even if your technology and product is the most amazing thing in the world, without sound marketing, a sound message and a sound plan, and a commitment-level that borders on insanity, your technology won’t see the light of day.

We were prepared to run our XYO Token Sale in an unconventional way. Meaning, actually caring about members of our community, about crafting advertising and spending money on ads in a way that’s *gasp* profitable! And juggling all of this while growing our team and technology.

Our company is battle-scarred; our founders are battle tested. Being in business since 2012 in the IoT and technology space, competing against two direct competitors with over $50 Million in funding (each!) will make you a cockroach, believe me.

And to the extreme delight of PR professionals everywhere, I even proudly referred to both Arie and myself as cockroaches to a group of 30,000 cryptocurrency members; to which I received both a lot of support, and also a few people telling me, “You really need to get a PR person.”

Anyways, back to the main point…

I’m proud to say, when the market began turning around, we were primed, ready and battle-tested. And ever since that point, our project has become “one of the highest profile ICOs at the time of writing”, according to ICOExaminer.

Our project soon took off, and things haven’t slowed down one bit!

OK, so what’s next for XYO?!

Now let’s talk about where we’re going now.

At this time we’re in the final phases of our XYO Token Sale. And the purpose of this sale was to create a finite XYO Token Pool defined by the amount of ETH exchanged for XYO during the sale (basically allowing market to set the amount of XYO in the XYO Token Pool). And after the sale ends, all Unsold and Unallocated XYO Tokens will be burned (burn, baby, burn!). The remaining XYO after the sale creates the XYO Token Pool.

The XYO Token Sale was built on an Ethereum Smart Contract with a dynamic pricing model. Basically this means, that the amount of XYO one gets per ETH decreases after each transaction.

In other words, XYO gets more expensive as the sale continues. But, of course, this is in theory. Why? One word. Ether. Actually two: Ether + Volatility. Like many token sales, XYO’s exchange rate is pegged to the price of Ether, which, even if you’re a n00b in the world of cryptocurrency, you probably know that the price of cryptocurrencies can fluctuate dramatically.

Anyhow, after the XYO Token Sale concludes, two things are going to happen (and you should be excited about both!):

1. XYO GAMMA PLATFORM LAUNCH!