Welcome to the XYO Token FAQ article! We get a LOT of questions about XYO Tokens, ranging from “What’s an XYO Token?” to “How many XYO Tokens can I geomine on a rainy day in Nebraska if Bitcoin is down 25%?”. If you’re new to blockchain technology, cryptocurrency, and utility tokens, (there’s a difference, believe me!) that’s ok! We’ll try to cover the most common questions we get, from A to Z, and newbie to pro.
Here’s a quick list of the FAQ we’ll go over:
- What is the XYO Token?
- What can I do with XYO Tokens?
- Where can I buy XYO Tokens?
- How is an XYO Token different than Bitcoin?
- (More to come)
What is the XYO Token?
The XYO Token is a Utility Token that powers the XYO Network. You can think of it like the gas that powers the entire XYO Network economy. It’s required if you want to develop geodapps (geo-based decentralized apps) on the XYO Network, if you want to build a smart contract that requires location data, and if you’re a person just wanting to geomine and be a part of the XYO Network! There’s a lot of ways you can be a party of XYO, but nearly all of them will require XYO Tokens. The only things that may not require XYO Tokens is if you invest in XY, the company behind the XYO Network, or if you just want to be a supporter who follows what we’ve been up to :)
What can I do with an XYO Token?
Lots of things!
Developers: If you’re a developer, you can create geodapps that actively communicate with the XYO Network. If you’ll be needing verified location data, you’ll need to pay in XYO Tokens to retrieve the data you’re looking for!
Enterprises: Companies will want to make their hardware devices XYO-enabled, or find ways to to use our verified location oracle network to solve some of their biggest tracking issues. They will need to use XYO Tokens to access the verified location data, or they will be familiar with XYO Tokens, because their newly XYO-enabled devices will be participating in the XYO Network economy.
Personal: The everyday person may want to be able to use the features of the XYO Network, but may not necessarily know what XYO Tokens are, or even how to buy them! In those cases, a geodapp may have a variable price for a feature on their platform, depending on the current market price for XYO Tokens. Let’s say that an online retailer allows you to only pay for an item when you can prove it’s safely in your home, and not stolen off your porch. Perhaps that feature costs $5 on March 12th, but $9 later that year due to a price change in the XYO Tokens used to make that feature work! Although a person may not personally own XYO Tokens, they may be affected by changing prices if it is an aspect of the feature they wish to use. (Like the price of avocados increasing if the cost of water increases!)
Trading: Some folks just want to buy XYO Tokens to see if they can make a profit from trading. Although that’s not the intended purpose of an XYO Token, trading in the token and coin crypto market is incredibly common! In fact, anything with a perceived market value will tend to be traded or used to make money. So if you want, you’re completely allowed to simply buy XYO Tokens and hope that the price increases, so you can sell for a profit.
Supporter: Some people don’t actually really want to make a profit off their XYO Tokens, but simply love our technology, movement, and vision for a future planet Earth. In that case, you can simply purchase XYO Tokens as a way to support our company. *Currently, our XYO Token Sale is not available, but you can be a supporter by purchasing XY Equity or an XYO Geomining Kit.
Where can I buy XYO Tokens?
We do not currently have an XYO Token sale that allows you to purchase XYO Tokens directly from us. This means that you’ll need to buy XYO Tokens from an exchange if you wish to own them!
Etherscan is a great way to see which exchanges we are currently listed on: https://etherscan.io/token/0x55296f69f40ea6d20e478533c15a6b08b654e758#tokenExchange
We recently launched on LAToken, and you can see the complete guide on how to purchase on LAToken.
Important: You can’t purchase XYO Tokens with a fiat currency like the dollar. You’ll need Ethereum, Bitcoin, or another common cryptocurrency to purchase XYO Tokens on an exchange, and you will likely need to buy that currency first, then send it to a “cryptowallet” that you can use on the exchange to buy XYO Tokens!
How is an XYO Token different than Bitcoin?
Bitcoin’s purpose is to simply be an electronic currency. You can’t develop apps or tools on the Bitcoin Blockchain, so it essentially is just an electronic dollar. (Learn more about uses for common cryptocurrency)
It was the first currency to be built using blockchain technology, so it gains a lot of its value from being the FIRST cyptocurrency ever!
An XYO Token gains its value by how much people believe it will be useful, or how much use it has. That’s because it’s considered a “Utility Token”. (Utility = Use) Technically, there is also some fluctuating value from people who are traders, and may buy because they believe the price will go up, or sell because they believe the price will go down.
Overall, an XYO Token has a use as an economic incentivizing tool within the XYO Network. Sentinels get paid in XYO Tokens to geomine valuable verified location data, Archivists get paid to store that information, and Diviners must pay the Sentinels and Archivists in XYO Tokens should they want to access the data for a use!