O.XYZ, a blockchain and AI firm touting crypto and synthetic intelligence companies, is dealing with allegations of falsely inflating its technological claims and fascinating in aggressive techniques to suppress dissent throughout the firm.
Whereas founder Ahmad Shadid has defended each his and the corporate’s actions, a number of sources acquainted with the corporate’s operations who spoke with Decrypt have refuted public claims, alleging widespread misrepresentation of O.XYZ’s capabilities.
O.XYZ positions itself as a community-owned “Tremendous AI” ecosystem. The corporate claims to leverage substantial GPU computing energy, purportedly deploying tens of 1000’s of open-source fashions, enabling it to execute a big selection of duties.
Sources declare the corporate has exaggerated its capabilities, falsely stating it might probably connect with over 100,000 AI fashions, runs 20 instances quicker than rivals, and owns highly effective {hardware} it doesn’t truly possess.
It’s additionally accused of inflating the worth of its satellite tv for pc program and misrepresenting its token launch, elevating questions on transparency and accountability.
Because of these allegations, sources declare holders of the corporate’s not too long ago launched O.XYZ token are vulnerable to being harmed.
In an emailed assertion to Decrypt, Shadid issued an in depth response to considerations raised in regards to the firm’s claims, insisting that O.XYZ’s promotional language is “forward-looking” and aligned with its improvement roadmap.
Nevertheless, sources who spoke with Decrypt dispute this characterization, pointing to supplies on O.XYZ’s web site and investor shows that describe capabilities as present somewhat than aspirational.
In June, Shadid stepped down as CEO of Solana-based decentralized infrastructure supplier IO.web—an organization he based—amid allegations surrounding his previous and misreported firm metrics, citing his resolution as a transfer to cut back distractions and deal with the corporate’s development.
A public assertion Shadid revealed amid his departure from IO has since been deleted from Twitter (aka X). To keep away from conflicts and distance itself from Shadid, IO agreed to supply a “six-figure severance,” one supply acquainted with the matter informed Decrypt. IO earlier this yr raised $30 million in a Sequence A spherical from notable crypto trade traders, together with Hack VC, Solana Labs, Aptos Labs, Multicoin Capital, and Animoca Manufacturers.
A number of sources who’ve beforehand labored with Shadid described him as a “sensible, succesful particular person” who manages every time to assemble a extremely skilled crew for the job. Nevertheless, each a former worker and an investor who wished to not be named acknowledged they might “by no means work with Shadid once more.”
Disputed infrastructure and efficiency claims
In response to allegations that O.XYZ is exaggerating its capabilities, Shadid highlighted the corporate’s investments in U.S.-based Cerebras Methods {hardware} and plans to deploy cutting-edge AI information facilities, asserting that its infrastructure helps “20x quicker” AI processing. He cited benchmarks of Cerebras WSE-3 chips as proof of O.XYZ’s efficiency leap.
Sources dismissed these claims as “patently false,” as a substitute alleging O.XYZ has but to amass the mandatory {hardware} for such operations, regardless of Shadid’s claims of “superior talks” with Cerebras.
“There’s no inner benchmarking supporting the 20x determine,” one supply mentioned, who famous that the corporate’s routing expertise would possibly truly improve latency somewhat than cut back it.
Deceptive Starlink and partnership claims
O.XYZ has additionally promoted itself as being powered by SpaceX’s Starlink, with Shadid emphasizing the expertise’s integration throughout the firm’s operations.
He additional clarified that the declare refers to O.XYZ’s ongoing infrastructure roadmap, together with plans for “maritime connectivity options” and future AI capabilities in area slated for 2026.
Nevertheless, sources strongly contest that narrative. As a substitute, they assert Starlink is barely used for fundamental web connectivity in distant areas and performs no function in AI processing.
“No satellite tv for pc designs exist throughout the firm, and there’s no engineering crew able to creating such capabilities,” one supply informed Decrypt. They added that there are not any ongoing discussions with SpaceX, regardless of the impression created in advertising and marketing supplies.
Shadid’s responses additionally addressed the show of logos from main organizations akin to OpenAI and Neuralink, claiming they had been used to symbolize contributors’ backgrounds somewhat than formal partnerships.
Nevertheless, sources allege that this observe misleads traders and clients, noting that contributors requested their logos be eliminated after leaving the corporate—a request that allegedly has but to be resolved.
Controversy round token launch
The corporate’s O.XYZ token launch on October 15 throughout a number of “lesser-known” exchanges has been one other flashpoint. Whereas the token solely averages round $23,000 in each day buying and selling quantity throughout all exchanges—with a mere $8.1 million absolutely diluted token provide valuation—sources say it is solely a matter of time earlier than token holders are harmed.
“There isn’t a approach to make use of the token to pay for something like API requires the corporate AI, nor does the token legally entitle the holder to any property of the corporate,” one of many sources mentioned.
Shadid characterised the “preliminary liquidity pool activation” as occurring throughout a “testing section,” which was “instantly communicated to the group.”
“After an intensive market situation evaluation, we made a strategic resolution to proceed with the launch somewhat than withdraw the liquidity, successfully advancing our deliberate token launch timeline,” Shadid mentioned.
He added: “This resolution was communicated transparently by means of a number of channels, together with Discord and inner communications,” he mentioned. “Whereas the preliminary activation was unplanned, our subsequent resolution to keep up the token’s availability was deliberate and strategic. We keep complete documentation of all communications all through this course of, demonstrating our dedication to transparency with each our group and stakeholders.”
One former worker who didn’t want to be named, for worry of reprisal, shared that they had been supplied monetary incentives tied to a non-disclosure settlement after questioning the moral implications of the launch.
One other supply alleged, “Shadid was testing buying and selling algorithms when the ‘accident’ occurred.”
“Was testing my O.CAPITAL market maker quant methods, and it created a pool on Uniswap, and tokens went stay by mistake,” in response to a screenshot reviewed by Decrypt of a message from Shadid posted to a basic Slack channel for all workers to see. “I can’t take it down.”
Secret recordings additionally reviewed by Decrypt seem to contradict Shadid’s rationalization. Sources say the token launch was as a substitute deliberate, and workers had been informed differing tales—some that it was intentional, others that it was a “mistake.”
“Completely towards what the public-facing firm docs would have folks imagine with strains of transparency and group possession,” one supply mentioned. “Ahmad owns all of the tokens successfully and may dump them at a whim.”
Allegations of retaliatory practices
Sources declare that O.XYZ has used non-disclosure agreements to suppress dissent. They described a tradition of retaliation, together with terminations following inquiries into the corporate’s operations.
“The NDAs are being weaponized to silence authentic considerations,” one supply alleged.
Shadid defended the corporate’s contractor-based employment mannequin and strict confidentiality agreements, stating these practices are normal within the trade.
Shadid has in a roundabout way addressed the allegations of retaliation, however emphasised O.XYZ’s dedication to “clear, correct communication” and “complete documentation” of its strategic targets.
In any case, the allegations have led a number of former workers and contributors to hunt authorized counsel. Sources Decrypt spoke to say these former workers at the moment are exploring additional choices to make clear O.XYZ’s alleged practices.
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