UXLINK leverages Telegram traffic, advancing alongside Notcoin, igniting a surge of Web2 users into the Web3 wave
UXLINK will not only set a new benchmark in the SocialFi field but also promote the development and transformation of the entire industry.Author: Zoey, MT Capital
Introduction:
In the current wave of social networks, communication in Telegram groups has become an important part of people's daily lives. Notcoin and UXLINK are excellent products that utilize Telegram to achieve rapid user growth. Since its launch on January 1, 2024, Notcoin has quickly accumulated over 30 million users and 6 million Telegram group members through its lightweight Tap-to-Earn mining and viral spread. In contrast, UXLINK, based on social connections and viral growth through Link-to-Earn, has also attracted a large number of participants, currently boasting 4.6 million on-chain point holders and 1.6 million NFT holders.
Since its launch, UXLINK has already acquired 8.2 million registered users and built nearly 100,000 WEB3 groups, reaching over 8 million users through these groups, a number that continues to grow. Throughout May, UXLINK's data consistently ranked first in the daily, weekly, and monthly charts of DappRadar's social DAPP category, firmly placing it among the top three in the comprehensive category.
MT Capital's Zoey stated, "What we are most optimistic about is UXLINK's dual business positioning, which not only offers rich features and applications for C-end users but also provides strong services and support for B-end developers. Most traditional SocialFi platforms rely on the scale effect of C-end users, while UXLINK achieves broader coverage and more stable income through its dual market positioning. The expansion of C-end users strengthens the entire ecosystem, while B-end cooperation allows the value of traffic to be monetized, feeding back into community growth and increasing user stickiness—serving as both a user platform and a developer infrastructure.
From the strategic perspective of MT Capital, we believe that the key to the Mass Adoption track lies in breaking the limitations of a single market and forming a multidimensional, multi-layered user and revenue structure. UXLINK is not just a social platform; it is a core node of an ecosystem. By integrating various functions such as socializing, trading, and development into one platform, UXLINK can effectively attract and retain users while providing developers with a stable and scalable development environment. This diversified strategy not only enhances the platform's risk resistance but also provides a solid foundation for future expansion and innovation."
In the future, UXLINK will also focus on building a Social-Dex, expanding more functional applications, and generating more positive value. Currently, UXLINK's monthly revenue is already sufficient to cover project expenses, creating a virtuous development and flywheel effect, and the value of UXLINK Token will further be realized. We believe that through continuous innovation and strategic layout, UXLINK will set a new benchmark in the SocialFi field and drive the development and transformation of the entire industry.
This research report will explore UXLINK's current development and future prospects from the perspectives of the path to Mass Adoption, the sustainability of products and business models, user data, and user profiles.
1. Path to Mass Adoption
So far, this bull market has not yet seen the emergence of "Mass Adoption" projects, and how to break the circle has become one of the most common topics in web3.
Currently, UXLINK's path to Mass Adoption is as follows:
(1) Make good use of existing platform traffic
Utilize Telegram's massive traffic pool: UXLINK relies on Telegram's large user base to acquire initial users quickly and at low cost, replicating real-world social relationships on-chain.
Customer acquisition and conversion: Convert Telegram users into on-chain users through incentive mechanisms.
(2) Link to earn
Users earn UXUY points by sharing invitation links to "join UXLINK's TG community." This mechanism leverages social connections to rapidly expand the user base.
In the AIRDROP2049 event launched in April-May, UXLINK attracted over 1 million users from 190 countries and regions, with more than 50 partners participating. Notably, over 60% of users participated in the event through social invitations, highlighting UXLINK's broad appeal and viral spread.
(3) Introduce external developers
Developer incentive mechanism: Use $UXLINK to pay for protocol, data, and Dapp usage fees, attracting developers to continuously create high-quality applications and enrich the ecosystem.
Open social relationship data at the Dapp layer, providing it to developers through protocol layer APIs.
(4) Ecological cooperation and expansion
Extensive ecological cooperation: Collaborate with partners in DeFi, AI, GameFi, etc., to promote the distribution of UXLINK points and NFTs, expanding influence.
Launch the "UXLINK Social Ecological Alliance": Further expand the developer community and third-party project collaborations, promoting revenue and profit growth.
(5) User incentives and retention
Tiered operations and long-term incentives: Implement tiered operations through the issuance of different levels of community NFTs, retaining 65% of incentives for the community to ensure long-term incentives for active users.
Continuous "mining" opportunities: Establish a strong Web3 social network among users, allowing them to continuously earn $UXLINK through community contributions, where contribution equals "mining," maintaining user stickiness and activity.
(6) Diversified Token use cases and reasonable allocation
$UXLINK has clear use cases in protocol usage, transaction fees, airdrops/investment opportunities, forming a healthy deflationary model.
Community distribution and incentives: The majority of $UXLINK tokens are allocated to community users and developers, promoting sustainable development and user participation within the ecosystem.
(7) Data-driven optimization
Data-driven decision-making: Analyze on-chain data to optimize user experience and incentive mechanisms, ensuring the platform's development direction aligns with user needs and market trends.
Continuous improvement and innovation: Utilize on-chain data insights to continuously enhance existing features and launch new ones, maintaining the platform's competitiveness and innovative capacity.
Similarly rooted in Telegram, Notcoin utilizes lightweight Tap-to-Earn for mining and viral spread, allowing many new users to smoothly enter Web3 through the Telegram gateway. Since its launch on January 1, 2024, Notcoin has quickly become one of the hottest channels on Telegram, with participation exceeding 30 million and group membership surpassing 6 million, making it a darling of traffic.
According to Dune Analytics, even before TGE, UXLINK currently has around 4.6 million on-chain point holders and over 1.6 million NFT holders, a number that continues to grow rapidly. In comparison to Notcoin, although UXLINK's current WEB2 traffic data still lags behind Notcoin, its user conversion rate far exceeds that of Notcoin. Currently, Notcoin has 1.77 million on-chain holders (with 220,000 holders before TGE). In terms of on-chain holders, UXLINK far surpasses Notcoin, and the conversion and active user/total user ratio from off-chain to on-chain is higher, which strongly demonstrates UXLINK's stronger user native nature and deeper interaction.
This indicates that UXLINK has a very promising conversion rate from off-chain to on-chain, with deeper user interactions. UXLINK is currently actively collaborating with projects while continuously engaging in market education efforts. With the launch of more applications, it is highly likely to become the next Mass Adoption product.
2. Business Model—Balancing Both Ends, Positive Flywheel
In terms of business model, UXLINK serves both B-end and C-end.
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### C-end Users:
C-end users primarily engage in social interactions in group scenarios, discovering, participating in, and investing/trading crypto assets.
Most features are free for C-end users, but a transaction fee of about 1-3% is charged.
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### B-end Developers:
B-end developers utilize UXLINK's Dapps and RWS social protocols for the development and growth of social relationships and data.
Provide different trading scenarios and products, such as Airdrop, Pre-market, MEMECOIN, etc., with UXLINK taking a commission.
UXLINK charges B-end developers for the use of applications, protocols, and data, priced in tokens, allocating 85-90% to community users while charging a 10-15% infrastructure usage fee.
Revenue situation:
UXLINK has already started generating revenue in 2023, and since March 2024, it has begun to establish the UXLINK social ecosystem, allowing the community and developers to benefit more.
Currently, UXLINK's monthly revenue (calculated based on token value) is sufficient to cover project expenses.
3. User Data and User Profiles
Since its launch in late April 2023, UXLINK has already acquired 8.2 million registered users and built nearly 100,000 WEB3 groups, reaching over 8 million users through these group chats, a number that continues to grow. Throughout May, UXLINK's data consistently ranked first in the daily, weekly, and monthly charts of DappRadar's social DAPP category, firmly placing it among the top three in the comprehensive category.
According to Coin98's data statistics, UXLINK currently ranks first in the socialfi track for active unique addresses over the past 30 days, with an absolute gap from the second place.
In operations, UXLINK employs user segmentation and strategies to accurately create user profiles. Current on-chain interactions mainly include the following two categories:
Interactions related to identity/social: such as SBT, Group, Social Graph, learning check-ins, invitations, etc.
Interactions related to assets and trading: such as NFT, airdrops, SWAP, Pre-Market, etc.
Through the issuance of NFTs, it has also achieved user quality identification. The threshold for users to mint NFTs is based on their contribution to the community, on-chain interaction behaviors, and the value of assets held. Among them:
(1) The number of LINK NFT holders is 1,464,755, representing a high level of on-chain interaction users, making it the largest NFT holding group in the world.
(2) The number of FRENS NFT holders is 328,696, representing an active social group that drives growth for Web3 projects.
(3) The number of TRUST NFT holders is 4,374, representing KOLs and group leaders in the UXLINK ecosystem.
(4) The number of MOON NFT holders is 353, representing opinion leaders and asset whales in the WEB3 ecosystem.
Conclusion
As an innovative SocialFi platform, UXLINK has successfully attracted a large number of users and developers with its powerful group tools and unique dual market positioning, becoming a benchmark product in the industry. From quickly acquiring users based on Telegram's traffic pool to achieving user growth through the Link-to-Earn mechanism, and then introducing external developers and extensive ecological cooperation, UXLINK has demonstrated enormous potential on the path to Mass Adoption.
Its business model balances C-end users and B-end developers, building a robust ecosystem through diversified Token use cases and reasonable incentive mechanisms. UXLINK has not only successfully converted a large number of web2 users but has also maintained the platform's competitiveness and user stickiness through continuous data-driven optimization and innovation.
In the future, UXLINK will continue to focus on building a Social-Dex and will also launch a Social Liquidity Layer for developers, generating more positive value. Currently, UXLINK's monthly revenue is sufficient to cover project expenses, creating a virtuous development and flywheel effect, and the value of UXLINK-related assets will further be realized. Through continuous innovation and strategic layout, UXLINK will not only set a new benchmark in the SocialFi field but will also drive the development and transformation of the entire industry, likely becoming a model product for future Mass Adoption.
References:
https://docs.uxlink.io/uxuy-labs-api/whitepaper/white-paper
https://dune.com/queries/3753998
https://dune.com/queries/3755514
MT Capital
MT Capital is a global investment institution managed by a team of experienced investors, focusing on investing in innovative Web3 projects worldwide, with a presence in the United States, Hong Kong, Dubai, and Singapore. Our main investment areas include: 1) Mass Adoption: decentralized social platforms, games, applications, and DEPIN, which are key to driving the widespread adoption of Web3 technology among a broad user base; 2) Crypto-native infrastructure: we focus on investing in public chains, protocols, and other infrastructures that support and strengthen ecosystems, as well as native DeFi solutions. Additionally, our team has many years of experience in secondary trading.
Official website: https://mt.capital/
Twitter: https://twitter.com/mtcap_crypto
Medium: https://medium.com/@MTCapital_US
