The cryptocurrency market consists of market manipulation, confusion, and misrepresentation. New tokens are launched on a daily basis which causes investors to make mistakes in guessing prices and even guessing if a token is worth investing in. One of the newest tokens to come to market is $XAI62K.
When searching $XAI62K, there are multiple references to price predictions, relationships to gaming networks and the gaming network’s value, and even references to the token and trading pair. These references make the Smart BNB chain contracts confusing.
The goal of this document is to create a guide to $XAI62K and provide market insight, breakdown of its trading pairs, and clear risk factors.
Introduction to $XAI62K
Investors should be able to recognize a project at initial glance and know that it is separate from other similar named projects. One of the prominent projects with the name/abbreviation of “XAI” is easily searchable and usually related to games. Games are powered on the Arbitrum network and provide gaming services on layer 3 networks. $XAI62K is not this specific token.
XAI62K is a BEP-20 token on the BNB Smart Chain. Most tokens have a white paper, a roadmap, and a public team. XAI62K is a micro-cap token, and lots of the information about it is hard to find. It does not have a verified website, and does not have a presence on major social media platforms like X (Twitter) and Discord.
Tokens like these are often bought speculatively as investors hope to find gems. XAI62K should be approached with extreme caution due to the lack of information. The token is situated mainly in the DeFi ecosystem, particularly AMMs like PancakeSwap, rather than centralized exchanges.
Price Analysis of XAI62K
Micro-cap tokens such as XAI62K are very difficult to analyze because of the lack of available data and the token price should not be the only factor considered. It should also be considered how much liquidity is in the token.
Current Market Data
The price data on XAI62K is very hard to track. It is very inconsistent and very volatile, it is also very hard to track throughout various data aggregating websites.
- The price on CoinBrain is listed as a fraction of a cent, about $0.000000000001. The matching market cap is $0.01.
- DexScreener sometimes shows higher price values due to some glitches and older snapshots (~$0.011), but these should not be treated as tradable values.
The Liquidity Problem
The most concerning aspect when it comes to $XAI62K is its liquidity. Current blockchain records show that the verified liquidity for the token is less than 1 USD.
Why should we care? In different finance systems, liquidity pools allow people to buy and sell. If a liquidity pool is worth only 1 dollar In BNB, you won’t be able to sell $10 worth of the token $XAI62K, regardless of what the “price” is. The slippage would be 100% and the trade would most likely fail, or it will be a zero-sum trade.
With $XAI62K, there is a disproportional “price” and “liquidity”, so we can consider the token to be illiquid. Even though a price chart might show some historical movement, active market conditions do show a lot of movement.
Trading Pair Details
Since $XAI62K is a BSC token, you won’t find it being traded on Coinbase, Binance, or Kraken. It mostly exists in the DeFi space.
Main Pair: XAI62K / WBNB
The primary trading pair for the token is XAI62K/WBNB (Wrapped BNB). This pair can be found on PancakeSwap V2, the most popular DeFi trading platform on BNB Chain.
- DEX: PancakeSwap V2
- Pair Address: 0x02f5da28d0d2ab3a4e27b3bb5b95a7d17f57a726
- Base Asset: WBNB
Missing recent trading opportunities is a common occurrence when pairing addresses with analytical sites like DexScreener or DEXTools. Earning trading opportunities in healthy pairs can sometimes range in the thousands or millions of dollar totals on a daily basis. As for the $XAI62K token in particular, trading opportunities seem to be completely absent for some 24 hour time periods.
Blockchain Information
Any time a user interacts with a token, it is to their benefit to check the contract for the token to verify its accuracy. Scammers often create “honeypot” tokens that mirror the names of legit projects so that the user purchasing the token gets locked and unable to sell the token.
Key Contract Specs
- Network: BNB Smart Chain (BSC)
- Token Standard: BEP-20
- Contract Address: 0x900742c175e4010375e28176e039600c0abdef00
- Decimals: 18
Holder Distribution
Using BscScan, approximately 143 to 159 holders of XAI62K can be seen. For a cryptocurrency, this is a very small number and confirms very little adoption.
Moreover, and monopoly on a large portion of the supply, often 90% or more, of such tokens is very common for a single creator’s wallet or the deployer address. This presents a risk of a rug pull, the creator then withdraws all the liquidity and the price is instantly shot to zero.
Market Sentiment and Predictions
The term token in a market like this has less to do with technical analysis and more with risk assessment, and on the subject of the market sentiment on the $XAI62K, the sentiment is overwhelmingly negative, if not cautiously negative.
Risk Flags and Warnings
The automated security scanners have flagged the XAI62K contract warning the user of severe risks associated with it.
- PancakeSwap Warning: If you try to import the token address on PancakeSwap, you will be presented with a HashDit warning of “High Risk,” indicating that it is either a malicious contract or a known scam.
- Honeypot Detectors: Several third party scanners have identified “Honeypot” devices. A honeypot is a malicious smart contract that allows a user to buy a token, but a user cannot sell it.
- Unknown Reputation: BscScan identifies the token with an “UNKNOWN” reputation. A user is advised to verify the token identity prior to engaging with it.
Market Sentiment Conclusion
Currently, there is no active bull sentiment, and there is no community to support it. A community consists of at least a Telegram group, or a Discord server, or a marketing effort, and the community is absent. Among cryptocurrencies with no supporting use case, $XAI62K and $XAI62K have the least likelihood to become a viable asset.
Conclusion: Should You Invest in $XAI62K?
Considering the blockchain data, liquidity allocation, and risk flags, $XAI62K entails a loss-making investment, which highly entails a loss-making investment.
$XAI62K shows all the attributes of a “dead” or, at the very least, an abandoned project.
“Dead” projects typically exhibit:
– $XAI62K has no liquidity.
– There is no trading activity.
– $XAI62K is flagged as a honeypot.
– $XAI62K is a project relying on name confusion.
If you are stuck with $XAI62K, you may find it difficult or even impossible to remove your funds from the liquidity pool as it contains no WBNB. If you are thinking of acquiring some, data does suggest investing elsewhere. In the vast sea of crypto, protecting your capital is as important, if not more important, than hunting for rewards. Never forget to check the contract address and the liquidity pool before you swap your valuable BNB.
