XYO is a decentralized network created by the parent company XY. The main focus of the platform was to incentivize and facilitate the development of dApps through improved technology.
XYO conducted a token sale back in 2018 with a goal of $50 million. The platform was able to raise around $12 million at the time, selling almost 1/4 of the tokens available for sale. The price of each token at the time was $0.007 and the token was listed on exchanges shortly after the completion of the token sale.
The valuation of the company at the time was basically $703 million considering the token sale.
Initially, XYO tokens started trading at around the ICO price, $0.006 but quickly fell off and dropped down to $0.0019 only two months later. It is now trading at $0.00027, a return on investment of about 0.04x since the ICO. This is a huge loss for investors as the price of XYO tokens hasn’t reached the ICO price again.
The company did burn all the unsold tokens after the sale and the total supply got down to only 14 billion from the initial 100 billion token supply, however, the token had a tough time picking up trading volume and remained in a downtrend for the most part.
The current valuation of XYO would now be around $4 million only, a minuscule number from the initial $703 million valuation.
Financial Report of XY
XY, the company that created XYO released the 2018 Full-Year Audited Financial Report back in May of 2019. According to Yahoo Finance, the revenue of XY was around $21.6 million in 2018, a number that dwarfs the previous $1 million revenue of 2017.
One of the main reasons for this huge revenue improvement was the token sale. According to the official SEC document, around $15.9 million was related to the sale of XYO tokens.
It is still unclear what the use of the token actually is, however, the XY Company kept selling mining tools and equipment to its community driving the price down even further.
The token and platform are almost dead at this point as the trading volume of XYO has gone down to an average of $1000 per day and the price continues to tank.