WEB3 social unicorn XO—how to break the deadlock in the social track and achieve remarkable results

Introduction to the XO Team

Hello everyone, I am Carol, the co-founder and CMO of XO. XO is a web3 anonymous dating platform with 1.5 million users, encompassing both web2 and web3, generating over a million matches each month, and has a stable business model revenue. XO's mission is to help humanity combat loneliness by connecting lonely souls in very different ways; we are not TikTok, Tinder, or similar products. The XO team consists of 14 members. Our CEO Paul is an entrepreneur who has led startups from zero to profitability. Our CTO Peter is an expert in AI chatbots. My previous startup also used blockchain to address web2 pain points.

XO: Insights into Market Pain Points

Scams like phishing are a major issue in the dating industry, and traditional dating apps tend to be superficial and lack opportunities for engaging follow-up interactions. However, online dating and socializing have become mainstream, with the dating service market growing from $8.74 billion in 2023 to $9.27 billion in 2024. XO believes it is necessary to step up, take action, and prevent more tragedies from occurring.

Why Web3? How is Web3 dating different from traditional dating apps?

Carol: "I could probably spend hours discussing this topic, starting with how we change the matching process!" We optimize the user matching experience and spark connections through AI, while using Web3 technology to reduce the risk of scams.

First, we have a "post-matching" system: unlike traditional dating apps, XO focuses on users' emotions and real-life stories. You can imagine it as using Instagram's stories for matching; people love to share, but it's not just limited to profiles and photos, which allows for deeper and more meaningful connections. We know that appearance is important, but it is not everything.

Based on the content users post, AI will work its magic on your algorithm to find people you might like, who may share your taste in music or are fellow cat lovers. They will be prioritized in your matching cards. Our data has proven this: in traditional dating apps, women typically send an average of 25 messages to get a response, while on XO, women only need to send 2 messages to receive replies, and men need 7 messages. This is how our AI matching system helps users.

Second, let me share an interesting study about the success rate of traditional online dating, which is less than 20%. Some people give up, while others find answers on how to improve, and some are lucky, but most are unsatisfied, often because their photos are not attractive enough or their profile information is lacking. So why not just be yourself? We have an AI Agent that acts as a wingman and dating coach. Without personal profiles and photos, you can just be yourself, posting your feelings and preferences, and those who appreciate you will reach out. In the one-on-one chat room after matching, our AI bartender Josh will help you break the ice and provide game-like interactive opportunities to guide the conversation toward more meaningful and deeper directions.

Last but not least, we have our social credit system, which is part of the ecosystem we are building. Dating scams are a serious issue. XO addresses these problems through the decentralized, transparent, and irreversible nature of blockchain, reducing risks. For example, our Web3 Decentralized Identity (DID) verification system combines on-chain and off-chain verification to provide users with human verification, while their social behaviors are recorded in the social credit system, such as paid chats, tips, and achieving social interaction milestones. This information is stored in soul-bound tokens. We currently have over 600,000 Soul Bound Token holders who are contributing to this ecosystem.

We incentivize users through tokens and airdrops, encouraging them to build their reputation and human verification marks. When they match or tip other users, or improve their DID scores, they can earn rewards and enjoy a better matching experience. Data is stored on-chain, which also proves that users are human and willing to pay for socializing and companionship.

The Combination of AI and Socializing—Enhancing Retention Rates

As I mentioned, the lack of follow-up engagement is a major issue for dating apps, and retention rates are the lifeblood of dating software. XO has a retention rate three times higher than that of traditional dating apps, and the secret lies in AI technology. People often start dating conversations with the same old questions about where they live and what they do for work. XO uses AI Agents like Seiko and Bartender Josh, who act as AI assistants to help users initiate better conversations. There are over 100,000 AI Agent calls daily, proving the popularity and demand for this feature.

Carol: "Seiko will have new updates soon; I can't reveal too much, but it will definitely be exciting."

Business Model and Goals

Carol: "By combining AI and tokenized incentives with dating software, we are tokenizing the value of emotions and companionship." Users can use tokens to subscribe to app features, tip, and unlock AI Twins, allowing them to train AI and customize premium features. Creators can also earn tokens and tips by providing companionship, regardless of time and location. XO has a verified $1 million ARR and $40 ARPPU (twice that of Bumble), combining profitability with scalable growth opportunities in both Web2 and Web3 ecosystems.

$XOXO Token Empowerment—Redefining Emotional Connections

Incentivizing user participation: Users can earn tokens through meaningful interactions, such as posting valuable content, receiving "super likes," and engaging in the community.

Access to premium features: Tokens can be used to unlock premium features, such as exclusive content, advanced matching tools, and AI agent creation.
Ecosystem integration: The token will be used within the decentralized identity system (DID) to facilitate secure and verified interactions between various dApps within the ecosystem.

XO's Future Plans

We are focusing on AI development, as the interaction frequency of AI agents proves the demand and clearly helps users. Therefore, AI agents will soon be upgraded, and more exciting news will be revealed gradually. Our cross-platform plans are also expanding. Now you can not only match through the XO APP but also meet people from the Farcaster platform, with more features to come. Our vision is to expand cross-platform matching globally, rather than being limited by regional or platform constraints. Users feeling lonely and wanting to vent anonymously or seek companionship can find listeners and companions anytime, anywhere.

Any Impressive Stories Happened at XO?

We have received a lot of feedback, and users often share their stories with us. We even created a fan page on Instagram to share interesting things.

One story that impressed me was about a girl who had an abortion. She accidentally downloaded XO and began to anonymously share her feelings and life. Later, she met someone willing to listen to her, comforted her, and gave her hope to believe in love again. Eventually, they got married and started their own family. She shared this good news with us in the community. We were very touched; these stories happen every day in our app. This also motivates the team to continue working hard and providing a safe secret space for those who need companionship and love.