Record 2x Growth and Profitability for XY Labs and XYO

As you may or may not have seen, our semiannual SEC Filing was released today. I normally do occasional updates on Medium, but this announcement was too exciting to wait for.

To explain why I am so excited and why the announcement a few paragraphs below matters, we should go back a few years in the XY history books.

At the end of 2017, XY Labs (at the time XY — The Findables Company) had been through some ups and downs with the consumer market and we truly needed a fresh & data-first product to bring us into our next stage of growth. The market for the “Internet of Things” was shrinking, and people were much less interested in smart homes and objects that (unnecessarily) added technology and the internet to their features.

At the same time, the cryptomarket was booming. Bitcoin had seen an all-time high of $17,000, and people were learning more about cryptocurrencies and blockchain technology. It was a perfect combination: a growing market and a novel technology focused on improving users’ lives with a data-first approach.

In early 2018, XYO was born. We grew alongside other new crypto-projects that popped up as a result of the boom, and when the “crypto winter” occurred in 2018, we survived with supplementary income across our projects when other projects saw huge losses or even completely died from the volatility of cryptocurrency prices.

Come 2019, our growth efforts surpassed our expectations and we didn’t quite hit the technology development we needed to match the overwhelming interest and demand from new customers. We downsized, and for the next two years, we focused on two things: developmental growth and profitability as a company.

You might be thinking, “well, isn’t a company always trying to be profitable?” and while the answer is yes, it’s to an extent. The way start-ups (often) work is that they start by prioritizing growth over profitability. They do this for a while, and then will often shift to profitability once they reach a comfortable level of customers that can financially sustain their future growth efforts.

In XY Labs’ case, we’ve seen the birth of numerous projects and products since our inception, which causes a unique situation where growth is repeatedly prioritized, and it’s precisely what we saw with XYO. This can cause a delay in reaching the stage where the company is profitable, but does not mean the future goal of profitability is ever lost.

And this is why I’m excited to announce:

In the first half of 2021, XY Labs saw a profit of $3,841,615.

Of course, profitability doesn’t mean that we’ll stop growing or stop aiming for new heights. We still have quite a bit on our to-do list and even more waiting in the wings. In fact, this isn’t the only thing we want to talk about on this announcement; we also wanted to touch on our goal of developmental growth and a focus on improving the products we have created.

XYO Network and Token

In the past 3 months alone, Edge Nodes for the XYO Network have doubled. Our growth is accelerating and this makes us one of the largest crypto node networks out there. This means our growth has not faltered after our pursuit of a profitable, healthy company, and we don’t believe it will be stopping any time soon.

In the last month, the XYO Token was listed on Coinbase and Coinbase Pro, along with many other new exchanges. Unlike many “dead coins” that arose from failed projects from 2018, our utility token has been thriving. We believe that by choosing to focus deeply on solid technology, profitability, and developmental growth over the last two years, we have surpassed other blockchain projects that may focus more on the excitement of growth and promises.

Instead of chasing partnerships, our pursuit of refining our technology has resulted in partnerships coming our way.

In the case of XYO Network technology, we have been able to take lessons learned from XYO 1.0 and have embarked on XYO 2.0. I’ll have a future article that details XYO 2.0, but I’ll share some highlights here. Most of the XYO 2.0 development to-date has been with the dual purpose of providing key technology to be used with our largest user of the network, COIN, and for providing SDKs and technology that supports new use cases and partners.

XYO 2.0 focuses on using JSON as the payload for bound witnesses and using mobile devices as Sentinels and Bridges rather than devices designed only to be used with XYO Network. The main benefits of these changes are that they allow 3rd parties to integrate with and develop against the XYO Network much more simply while providing real-world benefits for applications such as COIN. Essentially, this means partnerships and 3rd party integrations can become much easier and much faster to implement.

COIN

The COIN App has also seen exciting amounts of growth and change in the last two years. The app recently hit over 3 million downloads globally and now serves users from over 125 different countries. COIN has also come a long way since Geomining was the only way to earn rewards. With Bonus Drops, Background Rewards, HODL Rewards, Referral Rewards, Rewarded Ads, Big Geomine Witnesses, Engaging Surveys, Store Visits & Product Scans, and Rewarded Play, users have so many ways to earn COIN now.

We recently began case studies to see how the app has changed our users’ lives. This resulted in some incredible stories. Some of the highlights:

• A user earned enough to pay off a 30-year mortgage
• An international user moved to a new city and purchased a new car
• One user saves for his future honeymoon with COIN
• An analysis of 500 users showed a crypto-portfolio growth of over $14 million USD

COIN users have redeemed for over 4 billion XYO Tokens since it was launched in early 2019. Today that is worth over 100 million USD, but the best part is the vast majority of that was redeemed while the price of XYO was much lower than it is today. As a result, the users that held on to their redeemed XYO experienced huge gains when the price skyrocketed this year.

Behind the scenes, we’ve also been focusing on the backend of COIN to improve performance and prepare for the massive scaling of our user base. We are excited to continue perfecting existing functionality and we will keep adding new features our users love. Our opportunities are truly endless with COIN. Stay tuned!

I hope you’re just as excited as we are for not only the close of the 2021 year, but also for the journey ahead. Over the last two years we may have been quieter, but by no means less focused on bringing to life the technology I’ve dreamed of building. If anything, we’ve been more efficient and more aligned than ever… and we can’t wait to see where it all goes next.