Token price rising rapidly, what did PonziChain Play xPET get right?

Recently, the Ponzi economy GameFi — xPET, which has seen a sudden increase in discussion on Twitter, is being compared to previous Ponzi projects. What sets it apart and why is the market still interested in it? This article will list the innovations of xPET as a reference for studying the Ponzi model.

This article does not offer investment advice.

What is xPet?

Introduction to the xPet Project

xPET is a blockchain game launched earlier this month, with the game frontend built on top of X Twitter and utilizing the Arbitrum blockchain network. Combining Twitter community with game missions, it has quickly gained attention from crypto degen players.

xPET is a ponzi economic game that involves risks associated with token price fluctuations when played with real funds, similar in nature to other failed blockchain games in the past.

However, its game mechanism and promotional methods leveraging Twitter have indeed captured the attention of some crypto users in the short term.

Increasing Discussion on xPet

As xPET launched the PVE adventure mode on the 26th of this month tweeted, players can now earn more rewards by participating in the adventure mode in addition to collecting pets and exchanging them for BPET tokens, which has boosted the utility of pets.

With the promotion from crypto KOLs, the number of players of the game has shown a significant increase in recent days, with the growth rate of new players returning to the level when the game was first launched. According to Dune Analytics data, there are approximately 15,000 addresses interacting with xPET contracts so far.

On the other hand, its governance token XPET has also seen a significant increase in value, with a 91% price increase in the last 24 hours as of the deadline.

Introduction to xPET Mechanism

This article will not delve into the complete game mechanism and token model of xPET. As mentioned earlier, xPET is essentially a ponzi economic model, but explaining the game design slightly helps in understanding its innovation.

For the full details, please refer to the whitepaper.

XPET and BPET Tokens

The game has two tokens: governance token XPET and game consumption token BPET. Users mainly gain BPET by participating in the ecosystem, which needs to be locked for a period before it can be exchanged for XPET.

Both tokens can be used to purchase pets, allowing users to join the game ecosystem.

XPET Pets

xPET pets have levels, satiety, and health.

The level is determined by the BPET tokens used by players to upgrade, affecting where pets can be used. For example, pets above level seven are required to operate the berry factory, and those above level ten can participate in the PVE adventure mode. Additionally, the level also determines the speed at which pets produce in-game resources, berries. Therefore, the level is the main variable that determines the price of pets.

Satiety and health are the consumption mechanisms of xPET, requiring food items or brooms to maintain pet health for participating in the game and gaining rewards.

At the start of the game, a level one pet is gifted by the system, and users can also directly purchase higher-level pets. Only pets purchased with real money are NFTs and recorded on the Arbitrum chain.

Berry Factory

When users have pets above level seven, they can run the berry factory to convert the berries collected by pets into in-game currency BPET. The speed of BPET token generation depends on the pet's collection speed and factory processing speed, prompting users to upgrade the factory level accordingly.

Moreover, xPET game has an invitation mechanism. If a new player uses an existing player's invitation code to join the game, both can accelerate the production of berries by pets.

Adventure Mode

Also known as Play to Earn mode, xPET's adventure mode has three levels, requiring pet levels as entry tickets and allowing players to earn additional BPET token rewards beyond the berry factory.

According to the team's whitepaper, there are plans to introduce a PVP mode in the future, increasing token gaming mechanisms and complexity.

The above is the general structure of the current xPET ponzi economy, explaining its innovations that have attracted the attention of crypto users.

New Features of the Ponzi Economy

No Built-in Token Trading Market

The xPET team did not include an in-game token trading market but provided a lending system where users can stake ETH to obtain XPET loans. With this design, users are expected to acquire XPET tokens by pledging ETH to start purchasing pets and playing the game, rather than directly buying XPET tokens with ETH.

This approach is expected to have two benefits:

Firstly, from a user perspective, users do not directly buy game tokens with assets. They can even redeem ETH later, reducing user concerns about not being able to withdraw funds. When the XPET token price drops, they can redeem at a lower price. This mechanism may allow users to engage with the game with a more open mindset.

However, the actual risk does not decrease. If users cannot earn the same amount of XPET tokens in the game, they will still be unable to redeem their assets. On the other hand, if the XPET token price rises to a certain level, users will need to add ETH collateral, or there is a risk of liquidation.

The second benefit is extending the time users hold tokens. Although there are external trading pairs like Uniswap for users to quickly cash out XPET and BPET, the game defaults to a custodial wallet, requiring users to transfer tokens to an external address or go through a two-step verification to access private keys to log into another wallet for quick cashout in the external market, thereby extending the life of the ponzi economy.

XPET Twitter Marketing Strategy

xPET offers mission modes for users to earn BPET tokens, which serve as a revenue source for free players.

Interestingly, xPET's missions are almost entirely embedded on Twitter. After installing the game plug-in and linking it to Twitter, users who see posts with a treasure chest icon on Twitter can comment on the post with the word "xpet" to receive random rewards such as BPET tokens, food, and other items.

xPET leverages the existing channels and algorithms of Twitter to significantly increase user engagement through this mechanism, boosting market exposure and enhancing community participation while completing external promotions. Both aspects are beneficial for prolonging the life of the ponzi economy, somewhat reminiscent of the past Tip Coin's Hash Tag.

Alternative social mining Tip Coin, using airdrops to expect Tip Coin to earn Twitter revenue sharing?

Long-Term Effects of XPET Still to be Tested

xPET is indeed a ponzi game, but it has innovative points worth learning from. By integrating embedded wallets with Twitter, the registration and login process is optimized; using Twitter algorithms with mission reward mechanisms increases community engagement and external promotional effects; and not having a built-in trading market but replacing it with a lending market enhances user confidence and extends the token life.

This article is not investment advice