O.XYZ, a blockchain and AI company that touts crypto and artificial intelligence services, is facing accusations of falsely inflating its technology claims and employing aggressive tactics to suppress dissent within the company.
While founder Ahmad Shadid has defended both his and the company’s actions, multiple sources familiar with the company’s operations spoke to Declutter have refuted public claims, claiming there was widespread misrepresentation of O.XYZ’s capabilities.
O.XYZ positions itself as a community-owned “Super AI” ecosystem. The company claims to leverage substantial GPU computing power and reportedly deploy tens of thousands of open source models, allowing it to perform a wide range of tasks.
Sources claim the company has overstated its capabilities by falsely claiming it can connect to more than 100,000 AI models, run 20 times faster than the competition, and have powerful hardware that it doesn’t actually have.
It is also accused of inflating the value of its satellite program and misrepresenting the symbolic launch, raising questions about transparency and accountability.
As a result of these allegations, sources claim that holders of the company’s recently launched O.XYZ token are at risk of being harmed.
In an emailed statement to DeclutterShadid provided a detailed response to concerns raised about the company’s claims, emphasizing that O.XYZ’s promotional language is “forward-looking” and aligned with its development roadmap.
However, sources that were spoken to Declutter disputes this characterization, citing material on O.XYZ’s website and investor presentations describing capabilities as existing rather than aspirational.
In June, Shadid stepped down as CEO of Solana-based decentralized infrastructure provider IO.net – a company he founded – amid accusations about his past and misreported business figures, citing his decision as a move to reduce distractions and to focus on growing the business.
Since then, a public statement released by Shadid during his departure from IO has been published deleted from Twitter (aka X). To avoid conflict and distance itself from Shadid, IO agreed to offer a “six-figure severance package,” a source familiar with the matter said. Declutter. IDE earlier this year $30 million raised in a Series A round from notable crypto industry investors including Hack VC, Solana Labs, Aptos Labs, Multicoin Capital, and Animoca Brands.
Several sources who have previously worked with Shadid describe him as a “smart, capable individual” who manages to assemble a highly experienced team for the job every time. However, both a former employee and an investor who did not want to be named stated that they would “never work with Shadid again.”
Disputed infrastructure and performance claims
In response to accusations that O.XYZ is overstating its capabilities, Shadid highlighted the company’s investments in US-based Cerebras Systems hardware and plans to deploy advanced AI data centers, claiming its infrastructure is “20x faster” AI processing supports. He cited benchmarks of Cerebras WSE-3 chips as evidence of O.XYZ’s performance leap.
Sources dismissed these claims as “patently false,” but claimed that O.XYZ has yet to acquire the necessary hardware for such operations, despite Shadid’s claims of “advanced discussions” with Cerebras.
“There is no internal benchmarking that supports the 20x figure,” said one source, noting that the company’s routing technology could increase rather than reduce latency.
Misleading Starlink and Partnership Claims
O.XYZ has also promoted itself as a company powered by SpaceX’s Starlink, with Shadid emphasizing the integration of the technology within the company’s operations.
He further clarified that the claim refers to O.XYZ’s ongoing infrastructure roadmap, including plans for “maritime connectivity solutions” and future AI capabilities in space planned for 2026.
However, sources strongly dispute this story. Instead, they claim that Starlink is only used for basic internet connection in remote areas and plays no role in AI processing.
“There are no satellite designs within the company, and there is no technical team that can develop such capabilities,” a source said Declutter. They added that there are no ongoing discussions with SpaceX, despite the impression given in marketing materials.
Shadid’s responses also addressed the display of logos from major organizations such as OpenAI and Neuralink, claiming these were used to represent contributors’ backgrounds rather than formal partnerships.
However, sources claim that this practice misleads investors and customers, noting that contributors requested the removal of their logos after leaving the company – a request that has reportedly yet to be resolved.
Controversy surrounding the launch of tokens
The company’s O.XYZ token launch on October 15 on multiple “lesser known” exchanges was another flashpoint. While the token is just averages $23,000 in daily trading volume across all exchanges – with a fully diluted token offering value of just $8.1 million – sources say it is only a matter of time before token holders are harmed.
“There is no way to use the token to pay for something like API calls for the company’s AI, nor does the token give the holder any legal rights to any of the company’s assets,” one of the sources said.
Shadid characterized the “initial activation of the liquidity pool” as taking place during a “test phase,” which was “immediately communicated to the community.”
“After a thorough analysis of market conditions, we have made a strategic decision to proceed with the launch rather than withdraw liquidity, effectively advancing our planned token release timeline,” Shadid said.
He added: “This decision was communicated transparently through multiple channels, including Discord and internal communications,” he said. “While the initial activation was unplanned, our subsequent decision to maintain the token’s availability was deliberate and strategic. We maintain extensive documentation of all communications during this process, demonstrating our commitment to transparency with both our community and stakeholders.”
A former employee who asked not to be named for fear of retaliation shared that he was offered financial incentives tied to a non-disclosure agreement after questioning the ethical implications of the launch.
Another source claimed: “Shadid was testing trading algorithms when the ‘accident’ happened.”
“I was testing my O.CAPITAL market maker quantitative systems, and it created a pool on Uniswap, and tokens accidentally went live,” according to a screenshot reviewed by Declutter of a message from Shadid posted to a general Slack channel for all employees to see. “I can’t take it away.”
Secret Recordings also reviewed by Declutter seem to contradict Shadid’s explanation. Sources say the token launch was instead intentional, and employees were told different stories – some that it was intentional, others that it was a ‘mistake’.
“Completely against what the company’s public documents would have people believe in terms of transparency and community ownership,” the source said. “Ahmad effectively owns all the tokens and can dump them on a whim.”
Allegations of retaliation
Sources claim that O.XYZ has used non-disclosure agreements to suppress dissent. They described a culture of retaliation, including dismissal following investigations into the company’s activities.
“The NDAs are being weaponized to silence legitimate concerns,” one source alleged.
Shadid defended the company’s contractor-based employment model and strict confidentiality agreements, saying these practices are standard in the industry.
Shadid did not directly address the allegations of retaliation, but emphasized O.XYZ’s commitment to “clear, accurate communication” and “comprehensive documentation” of its strategic objectives.
In any case, the allegations have led several former employees and associates to seek legal advice. Sources Declutter said former employees are now exploring further options to shed light on O.XYZ’s alleged practices.
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