Live Q&A with the Community 03/28/22

Dear Xillionaires,

Welcome to the recap of our fourth Open Q&A with the Community. As in the past, we’d like to thank everyone who participated live in the event.
We went through 1 and a half hours of updates & developments + interesting questions, proposals and ideas, while helping clear out many doubts the community had in regards to our present status of the project plus its future plans. Please find the highlights of the conversation below along with the responses to the questions raised by our community.

These live Q&A sessions will be taking place frequently! So please come join us in Telegram to keep up to date - https://t.me/Official_ProjectX

Community Q&A Talk 03/28/2022

Question 1:

- You cite migration to the polygon network as the main reason for the delay in platform development. However you have been in the migration process for months and the final version of the platform has not been completed. The platform seems near to completion now but the project is nearly a year old. You will agree that a year is a long time in the crypto world. Even accounting for the fact that migration to another network is complex, why has development taken so long?

First of all, the IDO happened in the middle of September, and it’s been 7 months since the launch. Right after the launch, we released the first (MVP) version of the platform, and during the following 4-5 months we were doing several minor updates to the tech and were developing the new version. Is that a long time? I know many projects who have done it faster and many projects who have done it slower. As we’ve discussed several times already, we all want it to move faster.

Question 2:

- It seems that you added DAOs to your roadmap knowing the platform wasn’t close to completion and it now appears that you want to finish the platform before launching these. I believe this is the correct strategy as there’s no point in launching additional DAOs on an incomplete platform but why did you add these DAOs to the roadmap even though the chances of launching them prior to platform completion were remote?

We started business development activities such as onboarding DAOs and curators earlier, because it usually takes a long time from the first conversation and till the final decision and actually launch. So that’s why we started this process before the platform has been fully completed.

Question 3:

- You have cited SEC restrictions for not being able to launch US-based DAOs like NBA, TikTok, Hip Hop, etc, which is a major concern as the US is a huge market. Is there any way of bypassing these restrictions and what steps are you taking to remedy the situation? Also this issue impacts the investment case for the project, can you advise whether this limits growth potential?

Unfortunately it’s impossible without breaking the law. I don’t think anybody can do anything except the SEC itself. So, we have to wait for their final decision regarding it.

And as we mentioned during previous QAs and in the medium articles, we’ve highlighted that it’s one of the biggest reasons why we started working with the gaming projects actively and changing the platform the way we can accommodate more DAOs which aren’t linked to celebrities.

Question 4:

- Why do you think ProjectX is not attracting any new investors?

I see three main reasons:

  • We haven’t rolled out most of the features we want to release, so there’s not enough to use on the platform yet.
  • Current price performance which might be a stopper for those retail investors who haven’t been doing venture deals before and who are looking for quick money.
  • Marketing activities. We have discussed our updated strategy before, so we are going to roll it out as soon as the platform is updated.

Question 5:

- You advised that you’re working with DJ Soda to add value to the DJSD pool but very little has been done by her or the ProjectX team. The token was valued at $0.02 at launch but is valued at $0.0002 now. You have even attempted to distance yourself from this pool by saying you’re not the curators. The 1-to-1 brunch that you promised in December hasn’t happened and the $10,000 in prizes (10x$1000) from the Tesla staking pool turned out to be $100 (10x$100). After helping launch this on the Xillion platform, do you think it’s fair to lay the blame solely on the third party?

We are not trying to distance ourselves from it. It always worked this way. All the DAOs and launches we do, as all of you know, are controlled by their curators and owners. We just provide them with the opportunity to get launched. So curators and owners are responsible for all of the future development and performance of the DAO after the launch. Therefore, all the responsibility regarding the results are on the DJ SODA or any other teams side. Of course, except the DAOs we curate. Currently it’s only Gaming DAO. That’s how it worked, works and will work in the future.

So eventually, we will end up with a combination of some of the featured DAOs we do in collaboration with some of the trusted partners, and user-generated DAOs. We want to keep the platform accessible so that everyone with a good idea will be able to launch their small DAO.

Question 6:

- After losing nearly everything on the DJSD pool, why should your investors put more money and trust the same team responsible for this massive failure to participate in future pools or DAOs such as the recently disclosed Illuvium DAO?

First of all, those are two completely different projects, and it doesn’t make sense to compare them.

For example, If you bought a token that got listed on Binance and this token has failed, will you stop using Binance? So, that’s the same story. We are the platform where DAOs raise funds. We do not control those DAOs, we don't run them, we can’t do anything with those DAOs, only their curators / teams can do it.

Talking about Illuvium DAO, that’s a different story. We are launching it as a platform, and we are going to be running it as well. Therefore, the final results will depend on us. And in this case, you may need to answer a simple question: do you like the concept, and do you believe we can launch and run it successfully? So if the answer is yes, it makes sense to invest, if not, just ignore it.

The DAO is already quite oversubscribed. A lot of people want to get into this project.The only one question we are trying to solve now is how to find a good allocation for a public sale on Xillion.

Question 7:

- The majority of the timelines that you mentioned in the Xillion Strategic Vision in January 2022 have been missed, and it’s clear that most timelines that you listed in the revised roadmap for Q1 2022 will also be missed. The Instagram and TikTok pools were supposed to be launched in December. You have since updated the strategy to ensure curators conduct a private sale in the first instance to demonstrate demand, which is the right thing to do. However, do these missed timelines mean anything to you and should we, the investor community, be taking them seriously?

All of the timelines make a lot of sense to us. And, we obviously want to meet all of those timelines we give. However, due to the nature of some of those milestones (celebrities' involvement, etc.), we might miss them sometimes, because curators and celebs may change their plans. For example, our Hip Hop and NBA DAOs just put themselves on hold / canceled after the SEC’s statement. So what can we do with that? We had plans, we had confirmed schedules etc, but they have canceled it. So what can we do? Launch those DAOs without them? To be honest, It’s quite hard in general to rely on celebrities, because they do it mostly to make easy money, so they easily change their commitments, etc.

If you think it’s easy to do this kind of business, that’s not true. We are missing some of those timelines not because we don’t want to meet them, but because almost every DAO depends on many third parties who sometimes aren’t responsible at all, and who sometimes change their plans.

Question 8:

- For the last 6 months, we’ve been hearing a lot about the deals and partnerships ProjectX have signed with celebs, curators, etc. When will these be progressing as it seems like they are just being used as marketing tools to attract investment and to keep holders hanging onto something while you kick the can down the road?

So, all of the deals we mentioned are signed. I have mentioned many of them above. The biggest problem is that most of them are based in the US, so this makes regulatory things quite complicated for them.

Question 9:

- We need partnerships directly with BIG projects like Axie Infinity, Decentraland, Sandbox and Illuvium, a gaming DAO will be good but we need these BIG players involved to market on our behalf to attract direct investment. Unlike DJ Soda fans, followers of these BIG projects have crypto experience and are more likely to invest in XIL. Just a tweet from these projects mentioning ProjectX could generate substantial engagement leading to possible investment. You can market on your socials but you’re unlikely to reach the target audience directly unless you conduct paid advertising. Do you agree with this and what steps could you take to attract these big players?

Obviously, partnering with those projects is a perfect way to promote Xillion.
We are working towards this direction, but we have to be realistic, and understand that from a business perspective we don’t have a lot to offer to those giants at the moment. So, we are looking for some creative ways we can work with them.

For example, that’s why we have launched our Gaming and Metaverse DAO initiative, through that we have started partnerships with some of the platforms you mentioned.

Question 10:

- I believe that smaller DAOs where curators buy assets, NFTs, metaverse land, etc could be more beneficial to the project than larger ones that would be few in numbers. Do you agree?

Yes. I think that’s an amazing idea. That’s what we are doing right now. Making a platform accessible to small DAOs with small targets but very responsible curators.

Question 11:

- The following 12 months seem like a period of boom or bust in my opinion. I don’t see how there could be a middle ground for ProjectX. Do you agree that the project will either be a huge success or a huge failure?

In the vast majority of cases, projects end up somewhere in between huge success and failure. We can’t say with absolute confidence where Xillion would be. But the only goal we have is to become a huge success, otherwise it doesn’t make any sense to launch a project. We aim to make it super successful.

Question 12:

- In previous AMA sessions, I mentioned the importance of developing partnerships in non-US markets via Soccer and Cricket pools. Has there been any progress regarding this and is this an area you’re actively looking to develop?

We don’t have any progress with these things at the moment. But we are definitely interested, so if you have any connections, we’d appreciate an intro.

Question 13:

- You’re encouraging your investor community to launch our own DAOs. I’ve been thinking about what kind of DAO I could offer and have come up with the following: Equities DAO, which would involve investment by the curator into shares that offer growth and income potential. This could be similar to an investment fund but dividends would be paid in crypto. An even better idea would be to attract BIG investment funds to become the curators. I’m assuming the ProjectX Investment DAO will be different as this will be solely crypto based. What do you think of the idea?

Talking about the idea, I really like it. It might be an amazing product. Because I believe by using a DAO, you can significantly simplify this kind of investments and make them way more accessible to a wide audience. Like if you have $100, you can’t invest in the equity of any good startup, for example. And even if you have $1MM you still might not be able to invest. But via this DAO, it might become accessible to pretty much anyone. And at the same time, this would allow you to launch a decentralized VC and scale it by a constant fundraising from your DAO members - LPs. I’d say that’s the easiest way to launch a VC at the moment. The biggest question is what kind of equities you’d like to invest in. And how you’re gonna get them.

Question 14:

- The market cap is <£1m currently, which is disappointing for those of us who invested when the value was five or six times greater. We could’ve gained an additional 6x coins if we invested today. Personally, I have invested further to average down but the price has continued to drop further. I refuse to invest any more funds as it feels like throwing good money after bad. Every time holders have mentioned the price in the past, we’ve been told that there’s been an opportunity to sell for 3x, 4x, 7x, etc, but most of us haven’t had that opportunity nor are we interested in short term returns that the team shouldn’t be encouraging anyway. We all know returns are not guaranteed and we understand the risks of investing in startups but what assurances can you give to disgruntled holders in a similar position to me?

We have already talked about it before. But, I’d say a simple thing, as you mentioned in venture investments nothing is guaranteed. The vast majority of projects fail and go to 0. But, I believe the success depends on the execution, so if the team is actively working and trying to develop the product etc, that’s a good sign, and in most cases these kinds of projects will recover. We as the team are working hard to build the platform, bring good DAOs, etc. Obviously at this stage where we pay the most of our attention to the platform development, you can’t see much, but that doesn’t mean we do nothing.

So, personally, I normally set up a 1-2 years horizon for all of the deals. And during this period of time I don’t pay any attention to the price fluctuation, and try to help the projects I have invested in. After that I make a decision to sell or keep holding.

There’s no guarantees at all, as we all know. But sometimes even good projects struggle.

Our biggest commitment is that we are not going to stop the development, and will do all the best to make Xillion successful. Will it become successful? We don’t know and nobody knows, and nobody can guarantee it. But we as the team believe in that and do all the best to make it successful.

Question 15:

- Many of us asked if we could help in any way possible, but the team didn’t answer anything... Why? Do you think you got everything in order?

Let’s talk about it. Every time we have a QA I tell exactly how you guys can help. Launch your own DAO, make any intro to KOLs, potential curators, good projects to collaborate with, etc.

And every time after that we receive some help from several community members. And we really appreciate it. So, if you wanna help somehow, please let us know here or reach out to Nathan for BD / marketing opportunities.

Question 16:

- Are you using your crypto connections in any way, please share everything you do regarding your position? Question for John.

Of course, yes. That’s how we got listed on the centralized exchange, got into one of the best launchpads, how we signed a deal with Polygon, how we are launching Gaming DAO and many other things. Pretty much all of the partnerships we make / or we are working on are possible only because of our connections. So after the platform release, we are going to have more partnerships since now it’s difficult to find a mutually-beneficial angle with some of the companies that we potentially can partner with.

Question 17:

- Crypto = risk, but is it right to blame only the salespeople for what the project turned out to be? I think they sold it because they didn't believe it would make a profit. Do you agree?

We don’t know why people buy or sell. There might be different reasons, and it doesn’t make sense to try to guess why they did it.

Question 18:

- There is no one writing/talking/preparing content about XIL on social media, except for a few people. Do you believe that more buyers will come this way?

Answered many times, check the previous QAs and our strategy article.

Question 19:

- Although you can’t stop the negative comments on your socials, you can make the effort to respond to the misinformation being spread on every single one of your tweets. Why are you ignoring these comments that could decide whether a potential investor decides to invest or not?

It is actually very challenging with negative comments on twitter because we get many many mentions on a daily basis that are supportive or promotional from regional partners. So the negative ones actually fall under the radar often. Please bring these to my attention whenever you see them so it can be actioned rapidly. The roll out of the Ambassador Program will help with this a lot, we have created a new channel to help guide the process to shape our ambassadors.

Question 20:

- Is ASH WSB still an advisor to the project and onboard?

Yes, of course.

Question 21:

- It seems like you’ve washed your hands off DJ Soda, which doesn’t bode well. Where’s the one to one brunch ProjectX were marketing? Why did $10,000 in prizes turn into $100? You have a responsibility to your investors to fix this or your credibility is shot to pieces.

About the first part of your message. We are more than happy to collaborate with those DAO managers / curators who wanna be doing a lot of activities and who have a clear plan and who need our help. But, in DJ SODA's case, we tried many times to help by offering different ways how we can support them. So we didn’t see any requests / ideas on how we can help. They keep saying they can handle it.

So, we don’t want to distance ourselves from them, we just really don’t have many ways to help them, because it depends on their team and their content / initiatives, etc.

If you have any ideas what we can do for them - please share.

Because at the end of the day, all the DAOs we launch affect the platform. My point was we can’t control them and we can’t manage what they do. Because all of them are independent companies.

And of course, we want to see all the DAOs we launch succeed. We provide all of them with detailed recommendations on what to do, how to work on the promo after the launch, etc.

We did it for DJ SODA several times as well. They told us they have an amazing plan we will see in March. So we are just waiting for it.

Question 22:

- John, why do we only have 2000 to 3000 holders? Why are investors not seeing the potential in the project?

Good question. We definitely want to see more holders. Obviously, after we launch the updated version of the platform, we will do several successful launches, and we will boost the marketing, we will therefore get more holders.

Question 23:

- There’s a lot of buying pressure today, even the rubbish crypto projects are up 10 to 15% yet XIL is flat. If you can’t manage a rise on a good day then when will we have a rise? Yes we definitely need marketing but a lot has to be done before then. Twitter needs to be utilized better as this is vital to attract crypto investment, you created a YouTube video recently that’s disappeared. Telegram needs improvement and there needs to be better engagement from the community. At the moment I can’t back you because I’m extremely disgruntled at the situation, this will impact others reading Telegram looking to invest.

I think some of the investors are waiting till the Q&A ends to see the updates, so that’s why we are not having a lot of buyers today. Let’s see how that would go during the next several hours and after we release those updates.

Regarding social media and things like this, we have discussed that major updates are coming soon through with the new version of the platform. So we have done 2 new videos and are preparing some more content which will be posted together with the new features. There’s definitely a lot to improve.

Regarding the market, yes, today it’s green, and we think XIL will reflect a current trend as well. So let’s see how the market will react after today’s updates.

I don’t know why but we are totally ignoring the fact that our tech updates are quite good. So the devs are completing tasks earlier than planned.

Question 24:

- You have said the biggest market for our platform is restricted due to the regulatory issues, what steps are you taking to replace this HUGE market? It’s no wonder we have such massive selling pressure if we can’t even identify other markets to tap into.

It’s not exactly like this. Celebrities are restricted right now. But, talking about small DAOs or even not small but fully decentralized DAOs (like Constitution DAO for example), they are still available. So that’s why we wanna open the platform and position it as a marketplace where everybody with a good idea and some support from the community can launch the DAO, like DAO to buy a sports team, DAO to buy constitution, DAO to buy Metaverse assets, etc.

- I guess everything falls to how the platform will look like at the moment. I think we need to wait a couple of weeks to see the development conclude and audit complete. We can then see how well DAOs perform and what impact the marketing strategy will have.

You’re right. The final result depends on how the platform will perform, and how many good DAOs we can launch.

But, ideally we shouldn’t be launching them by ourselves. We wanna see more small communities or just good leaders to launch their DAOs.

It’s better to have 100 different small / mid size DAOs, than 5 DAOs with the celebs.

Question 25:

- How much money have you currently spent on developing the platform and how much cash in the bank do you have to develop the platform further?

Regarding the cost of development, that’s a quite complex question, and it consists of several different categories, for example developers salaries (we pay reasonable salaries, it’d say quite the same as the most of the market players pay, it varies from 100 to 200k / per year per developer + salaries of UX / UI and PMs), also in this structure we have to include costs for servers, software, 3rd party audits, etc.

Development is one of the biggest category in our expenses structure.
But we do have enough money to keep developing the platform during the next 12 months. And btw, since we are talking about it, I can tell you that we have already received several requests from some of the public chains and VCs about the new investment round. So, when we will fully roll out the platform, improve the token utilities, do some successful launches, then we can start talking about the new round.

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