While Bitcoin (BTC) has dominated crypto headlines in recent months, smashing past the psychologically significant $100K mark and surging more than 50% over the past six months, holders of a lesser-known token have enjoyed significantly more substantial returns. The Onyx Token (XCN) has skyrocketed an astronomical 1004% year to date and surged 2090% in the past six months, making it one of the crypto market’s standout performers.
XCN’s astonishing gains have captured the imagination of crypto enthusiasts and investors. But what exactly is XCN, what problem does it solve for its users, and importantly, can it continue surging to new highs and enriching its holders?
Offering perpetual credit lines
XCN operates on the Ethereum blockchain as a decentralized lending and borrowing platform. At its core is the Onyx Protocol, an underlying mechanism that facilitates peer-to-peer money market lending through transparent smart contracts.
Users engage with the ecosystem through XCN, the utility and governance token that supports staking, governance participation, and transactions. The decentralized autonomous organization (DAO), known as the Onyx DAO, oversees governance through on-chain voting and manages the Onyx Treasury. Users can deposit various digital assets as collateral, unlocking credit lines and borrowing capabilities within the protocol. Yield generation mechanisms, borrowing facilities, reserve factors, and supply and borrow caps are all part of the system.
XCN and the Onyx Protocol are designed to address various inefficiencies in cross-border payments and traditional lending systems. The core problem that XCN addresses is the inefficiency of traditional lending models. Unlike conventional systems, the decentralized mechanism underlying the XCN token enables users to enjoy perpetual credit lines without monthly payments or expiration dates, provided they maintain sufficient collateral. This innovation has the potential to significantly boost liquidity for banks and their customers, considering the volume and scale of transactions in the global banking system.
Not associated with JP Morgan
When investing in a crypto project, one of the most crucial factors to consider is the team behind it. The team is responsible for developing the vision, strategy, technology, and execution of the project. A strong team can make or break a crypto project.
There has been a widespread misconception that XCN is backed by a world class team from JP Morgan, which could have led to the massive price gains the token has recorded in recent months. This confusion arose because Onyx, the name of the token, coincidentally happens to be the former name of JP Morgan’s blockchain business unit.
Onyx was the original name for JP Morgan’s blockchain platform, which in November 2024 rebranded to Kinexys. This strategic business unit was launched to explore the potential of blockchain technology in transforming financial services. It was the world’s first bank-led blockchain platform and played a significant role in pioneering the use of blockchain in banking.
Kinexys core team consists of some of JP Morgan’s brightest minds in crypto and blockchain. This includes Naveen Mallela, the global co-head of Kinexys and one of its founding members. Mallela has been instrumental in building cornerstone products within the unit and has authored white papers on Central Bank Digital Currencies (CBDCs), shared ledgers, and deposit tokens. Prior to founding Kinexys, he held several roles at JP Morgan, including APAC Head of Digital Payments.
Another key figure is Umar Farooq, the Co-Head of Global Payments. This role combines treasury services, trade and working capital, commercial cards, and merchant services to help clients operate across more than 200 countries and territories. The business unit is the largest processor of USD payments globally, with a daily transaction volume of around $10 trillion. We covered a story about Farooq when he spoke at the Singapore FinTech Festival in 2021.
However, this team is not working on XCN nor is it in any way associated with the project – as some investors and speculators had mistakenly thought.
Optimism continues
While XCN does not in fact enjoy the backing of a behemoth like JP Morgan, analysts expect crypto investors to maintain their bullish stance, potentially supporting further gains in 2025. They cite several factors for this optimism.
Firstly, the Onyx team has announced plans to unveil the Onyx XCN Ledger, a new blockchain developed in stealth mode. This significant upgrade, scheduled for announcement in early February 2025, will include a comprehensive new whitepaper and is expected to address previous security concerns, including vulnerabilities that led to a $3.8 million hack in November.
Secondly, the DAO of the protocol is currently assessing a possible “token burn”. This means they are considering reducing the number of tokens in circulation, which would lower supply and potentially drive up the price.
These developments have fueled positive sentiment among investors, who are closely watching XCN’s record rally and potential for further growth. Experts predict that the price could reach $0.0643 in 2025, which represents a 150% upside from the current price ($0.0311 on Coinbase at time of publishing). However, investors and speculators should remain cautious of the risks involved.
The price is still 70% below the levels it traded at when it launched in 2022. Moreover, as with any investment, the future remains uncertain, particularly in the volatile crypto markets where many dreams of getting rich quickly have been shattered. Investors should therefore conduct their own due diligence and make independent decisions about their risk tolerance before betting on XCN’s continued price surge.
Author: Acutel
We are global investors who invest in good companies at fair valuation and speculate on all else subject to the risk exposure we can afford.
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organisations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
See Also:
Onyx, driving digital transformation at JPMorgan | Disruption Banking with Umar Farooq
Unlocking TradFi with DeFi at Singapore Fintech Festival | Disruption Banking with Umar Farooq
How Strong Will Onyx (XCN) Be In 2025? | Disruption Banking from April 2024 from DisruptionBanking
