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Just after a hack of the United States Security and Exchange Commission’s official X account and false post of spot Bitcoin (Exchange Traded Fund) ETF, another report from a crypto security firm, PeckShieldAlert, gathered everyone’s attention as a fake XAI token dropped by 100%.

#PeckShieldAlert #Slippage Fake $XAI has dropped -100%The deployer 0xB3Ff…47DD has swapped 2,077,982,891,807.9 $XAI for ~219,516 $BSC-USD*Note*: The #rugpull token shares the same name as the legitimate ones pic.twitter.com/iLOEasmGlM

— PeckShieldAlert (@PeckShieldAlert) January 10, 2024

Fake XAI token plummeted 100%

On January 10, 2024, PeckShieldAlert made a post on X (previously Twitter) that the duplicate XAI token fell by 100% after the deployer address 0xB3Ff…47DD swapped 2,077,982,891,807.9 XAI tokens for $219,516 BSC-USD. This XAI token appeared after Elon Musk disclosed his startup “xAI Crop,” with the main objective of understanding the universe, on July 7, 2023.

According to data from the trading view platform, this token was initially trading near $0.30 as the original XAI gaming token from the XAI network made its listing on Binance. After that, the deployer swapped its majority of holdings, causing the price of the fake XAI to plummet to $0.000000105.

Due to the fall of this fake XAI token, the original XAI token also suffered after its listing on Binance. Currently, the XAI gaming token is trading near $0.51, and in the last 24 hours, it experienced over a 24% price drop just because of the fake token.

Arbitrum’s XAI gaming token (XAI)

Currently, there are several tokens with the same name as XAI, including the recently listed XAI network (XAI) gaming tokens, the second XAI (X) token, the third XAI (XAI) token, and the last fourth SideShift token (XAI). However, in all these XAI tokens, the genuine XAI token is the gaming one, as it uses the Xai blockchain developed by the primary developer of Arbitrum in collaboration with Offchain Labs and overseen by the Xai Foundation.

Source: Xai-foundation

Additionally, the XAI gaming token has a dual purpose within the blockchain. First, it works as the designated token fee for facilitating transactions within the network, and second, Xai tokens will be used to reward the validator node, as their role is to validate transactions within the network. Moreover, Xai tokens, as the primary token, will be used for multiple purposes within the gaming ecosystem, including payment for in-game items.

Investors need to understand the basic price principle of investing, which is not to create FOMO in the cryptocurrency landscape. As the cryptocurrency industry is very volatile, investors need to look at the white papers, roadmap, token listings, market capitalization, maximum token supply, and the purpose of the token. After understanding all of these facts, they need to take action on whether to invest or not, and not based on anyone’s tweet or hype.

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