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Is Xfinite Entertainment Token (XET) a Good Investment?

The digital entertainment industry is a centralized behemoth with a handful of major corporations controlling the overwhelming majority of digital entertainment. This is an industry ripe for innovation with something like decentralization. 

There have been many projects over the years that have attempted to push for decentralization in this industry. Most of these projects have not panned out too well and have been long forgotten. One project currently attempting to make a name for itself in this cutthroat industry is Xfinite Entertainment. This article will cover absolutely everything you need to know about this project and offer some insight into the investment outlook of its native token XET. 

What is Xfinite Entertainment?

Xfinite Entertainment is actually a collection of a few different projects under the Xfinite Entertainment banner. These projects include an NFT marketplace (Mzaalo NFT Marketplace) and a “metaverse gateway that allows users to access premium content for free” (Mzaalo dApp). 

The NFT marketplace has 121 items in it over three categories, which is extremely small. The Mzaalo dApp is basically a Netflix clone with exclusively Bollywood content. It does have content and the content is free. However, we cannot say if this content is actually premium or not as we have limited knowledge of the Bollywood industry. 

We will give Xfinite Entertainment credit – they have released a workable product with Mzaalo dApp. That is much better than the vast majority of projects like this that have a tendency to fade away before releasing a product. 

Now, the successful release of a product is only one aspect of Xfinite Entertainment. We have bigger issues with some of the tokenomics and the general direction of the native token. The next section will cover some of the issues we have with XET. 

XET has Strange Tokenomics 

We are not big fans of the tokenomics of XET and find them to be unsustainable in the long term. This is a critical issue because bad tokenomics can lead to the collapse of the token, which can lead to the collapse of the project. 

Anyway, here are the tokenomics and why we find them problematic. 

  • 28.75% to reward pool
  • 25% for strategic partnerships
  • 25% for the token sale and “NFT related programs.”
  • 11.25% staking rewards
  • 10% to the team
    • Locked for 3 years.

The problem with these tokenomics is that only 25% of the tokens were sold to the public. Though this could be argued that is closer to 50% when the reward pool and staking rewards are factored into the equation. 

That’s another problem, though. The staking rewards are too high at 11.25%. We are not fans of DeFi staking tokens as they have a tendency to hyperinflate over time due to the massive supply that is generated by them. 

What We Like About Xfinite Entertainment

We do have some nice things to say about Xfinite Entertainment. These points should not be construed as an endorsement to invest in the token, though. We will cover that in the next section. 

They Have a Product

The first thing we like about Xfinite Entertainment is that they have a working product with the Mzaalo dApp. This is actually quite surprising because the vast majority of projects like this release nothing and simply run off with investor money. 

As we mentioned earlier, we cannot judge the quality of the content on the dApp, but just having movies available to watch on the platform is impressive. It shows that the founders are at least somewhat serious about the project. 

Public Founders

The founders of Xfinite Entertainment are public – their names and faces appear right on the website. Again, most scam projects have a tendency to have anonymous founders. 

It’s gotten to the point where we would not invest in a project like this if it has anonymous founders. 

Is Xfinite Entertainment Token (XET) a Good Investment?

Unfortunately, we would not classify XET as a good investment despite the fact the project has made some amount of progress with the dApp. This is because the tokenomics are all wrong on it – staking rewards are way too high and the public sale of the token was not large enough. 

This is proven by simply looking at the price chart for XET – it’s not good.

xet chart

This is a fairly common trend with DeFi staking tokens. They have a big run up in the beginning when the excitement is high and the total supply is relatively high (price stays high). The token supply eventually outpaces demand and the price collapses. 

We find this especially problematic with XET because it’s the utility token for Xfinite Entertainment. 

Final Thoughts

To summarize, Xfinite Entertainment is a halfway decent project, but the token price is completely ruined. We cannot recommend a token with a price history chart like XET in good faith. 

Is Xfinite Entertainment Token (XET) a Good Investment?