Xeta Capital launched around a year ago. We didn't invest because it utilized a system of tokens (XETA) and structured buying/claiming (XONs) which did not appeal at the time. However, we felt it was a genuine opportunity and did share it – you can read about it here. Now they have a new product in “beta” that this review will cover: Xeta Black.
Xeta Black is not tokenized — it utilizes stablecoins only, currently USDC.
Yes, that's right; no tokens to buy. Nothing to trade. Nothing to worry about in terms of price (actually, for their other tokenized product, they have removed the token from trading and fixed the price…however, that's a totally different product that we're not going to talk about here).
I hopped onboard in July to test it out (my first investment of 2023!), give you my thoughts and review…
UPDATE: Shortly after I joined, Xeta announced their plans for the public release due for October 2023. This includes changes to the rewards (reduced!) from what I have illustrated below, starting for all Accounts/Pools created after August. For the most part, all the functional information is expected to remain the same for now. I'll update or create a new article when the public launch goes live.
UPDATE: I've added a Xeta Genesis placeholder article (I will update the article after migration and withdrawal issues are resolved).
What is Xeta Black?
Xeta Black is a DeFi (decentralized finance) product that allows anyone with around $300 or more to participate in ‘high frequency trading' (an extremely profitable form of trading only usually accessible by the super-rich) in a simplified manner. The return is claimed to be up to 30% per month, however take that with a pinch of salt – with fees, you will never earn 30% per month…maybe 25%, and only if you're already pretty loaded.
That said, it's a cracking opportunity. One that seems genuine and one that IS within reach for almost anyone to participate in at some level.
Firstly…
What I like about Xeta Capital
Before kicking off, Xeta Black is just one product offering from Xeta Capital. Xeta Capital is the company, Xeta Black is a product offering.
The three main things I like about Xeta have not really changed since last year. They are;
- Returns based on “real world” tradfi structures and instruments.
- A focus on transparency.
- Responsibility towards social good.
I'd now add to it that they have simplified an offering by eliminating the need to purchase a token. It could be simplified even more IMO, but more on that later.
Lastly, they now have a full year of existence behind them, paying out, communicating with the community and refining… and the credibility that comes with it. Even moreso given its been a pretty shitty ‘bear' year that has seen many tokens and ‘opportunities' crash or disappear completely.
What I like about Xeta Black
In addition to what I've already said about Xeta Capital, here's a few things I like about Xeta Black…
- You don't have to purchase any token to participate – just deposit USDC. This eliminates token-related risks, complexity and “fannying about” – exchanging tokens etc.
- It is fairly simple compared to many other “passive income” opportunities, including their other offerings (see my first Xeta Capital post from 12 months ago).
- In addition to Ethereum network, they offer Avalanche which make the network (gas) fees much more affordable.
- It's ‘decentralized', or at least nowhere near as centralized as platforms offering similar returns, for which you usually have to register and deposit all your funds into their custody.
What I don't like about Xeta Black
There are a few things I'm not so fussed about, although nothing major…
- The presentation of “earn up to 30%”. Although this is technically true (ie if you earned 0% that statement would be technically true), it's a pet-peeve of mine, especially when it's over-represented for the majority which I believe is the case for Xeta Black.
- Slight over-complication in terms of how things work. Making the user have to think and calculate more than is necessary to work out what is best solution for them (what the fees are, how much additional external funds they need, when they can withdraw etc – more details later).
- The need for outside money to pay Pool fees (which can grow quickly) and the need to claim manually on Accounts when the return is fixed and could easily be auto-deposited to wallet.
Most of these are typical marketing and growth &/or money management plays; hook 'em in, invest time and deposit, then keep them coming back (engaged). Some are understandable and some are a bit over-done….or maybe I'm just getting old and am done with games!
Overall, though it's a big improvement IMO to their original / other offerings in terms of simplicity and accessibility.
Let's look a little closer….
Xeta Black: 2 ways to participate
There are 2 ways to participate in Xeta Black; Accounts and Pools.
You must have an active “Account” to participate in a Pool. However, Accounts also earn $$$ and appear to be more lucrative than Pools if you have less than around $25K. Although, as with most of these things, your strategy will depend on your individual circumstances and plans;
- How much money do you want to invest?
- When do you want to invest it? (ie do you have it all now, or will it be regular investments?)
- How “hands free” do you want it to be?
- How soon do you want to withdraw?
- How much will you want to witdraw?
- How frequently do you want to withdraw?
The answers to these questions will determine what strategy is best for you.
IMPORTANT NOTE: Xeta Black is still in beta and being refined. It's running well, but it's not perfect.
In addition to this article, I recommend you join the Discord to learn more and gain the latest information.
An overview of Accounts and Pools
What are the differences and what do you need?
Xeta Black Accounts
An account lasts for 1 year, outputs 1% per day and is available in $250, $500 and $1,000 values. There is a 2.5% fee to create the account, a $25 per month fee and a 2.5% withdrawal fee. Withdrawals from Accounts are available after a 28 day period. Each wallet can only withdraw every 28 days ie. regardless of how many accounts you have, you can still only withdraw once every 28 days…and it takes up to 28 days to receive your withdrawal.
- Account sizes: $250; $500; $1,000
- Account creation fee: 2.5%
- Monthly fee per account: $25
- Withdrawal fee: 2.5%
- Account ‘withdraw': Every 28 days
- Wallet withdrawal: Once per 28 days
- How long to withdraw: Up to 28 days
- Initial withdrawable: No
Yes; whist it is simplified, it's still rather complicated! We'll dig in more later.
One thing to note, is that you need at least 1 active Account before you can even consider a Pool and that the creation fee and monthly fees are paid with ‘outside money' ie. you need to have the fees in your wallet to pay them.
Xeta Black Pools
This is the more ‘hands-free' version, but probably not what you want to do unless you already have a lot of $wonga….
Pools operate in Tiers, and the bigger the pool, the more potential earnings; up to 30% per month at the highest tier.
- Pool Tiers: $1,000 (5%); 10,000 (10%); $25,000 (15%); $50,000 (20%); $100,000 (25%); $250,000 (30%)
- Pool creation fee: 2.5%
- Monthly fee: 2.5%
- Withdrawal fee: 2.5%
- Withdrawal availability: every 28 days
- Full liquidation: available after 84 days of creation
- Withdrawal increments: 25%, 50%, 75%, 100%
- How long to withdraw: up to 28 days
Immediately, you can start withdrawing profits every 28 days (after waiting 28 days and subject to the minimum %!). You must wait 84 days after pool creation before you could take out your initial / liquidate the account. The 2.5% monthly fee is based on the balance in the pool, so this increases every month if you are compounding.
Similarly to Accounts, fees (excluding the withdrawal fee) must be paid with outside money. There are numerous requests to see if this can be incorporated so it can be paid from profits. I believe they are working on a solution.
I'd like to see them change those withdrawal percentages too; 25% is far to high as a minimum withdrawal IMO.
Finally, for both Accounts and Pools the “up to 28 days” for withdrawal to hit wallet does not include public holidays…so what you see in the dashboard is not totally accurate; hopefully this will be fixed before the proper launch.
Xeta Black: Accounts vs Pools
The short answer is that generally, if you have less than $25K it makes more sense to buy 25 x $1K accounts than join a Pool.
Some people prefer Accounts full stop — over and above even a $50K or $100K pool. So there is definitely personal preference and circumstance at play.
Account pros
- Withdraw every 28 days and do what you wish with the USD
- High monthly return
- Possible to implement a manual compounding strategy
Account cons
- Expire after 1 year
- No compounding (manual interaction required)
- Cannot withdraw initial
Pool pros
- Auto-compounding (hands-free growth)
- Any amount possible (increments of $10K)
- Can withdraw initial
Pool cons
- Withdrawal is minimum 25% (& 25% increments)
- Does not auto-upgrade Tier (need to withdraw, then re-enter)
- Fees need to be paid from ‘outside money' (they can be A LOT for large tiers!)
Overall, despite needing a bit more manual TLC, I see Accounts as being the more flexible than Pools, more profitable for investments below $25K and more manageable in terms of needing additional ‘outside money' (because, with the exception of the first few months, you can withdraw and use the withdrawal to pay fees).
Also, the ‘TLC' is not that much effort— once every 28 days you check in to withdraw, pay fees and make more accounts if that's your strategy. And all Black products have a 28-day grace period on fees.
This opinion might change if there were some changes to Pools, including allowing smaller withdrawals, fees to be paid from profits and auto-upgrade tier.
Xeta Black $10K Example
I'm going to use $10K ( which for a Pool returns up to 10%) as the example figure. Yes, that's a lot of money that most of us don't have, however I'm using it to demonstrate why it's only really the $25K Tier (up to 15%) at which Pools (or a mix of Pools and Accounts) might make sense for some people.
$10K of Black Accounts:
- Initial money in: $10,500 (10 * $1K accounts with 2.5% creation fee & 1st month)
- Total costs: $13,750 (10 accounts + creation fees + $25 per mth per account)
- Value after 12 months: $36,400
- Withdrawable (value -2.5% fee): $35,490
- Profit: $21,740 (withdrawable – total costs)
$10K of Black Pools:
- Initial money in: $10,550 (2.5% creation fee & 1st month 2.5% fees)
- Total additional fees: $7,640 (2.5% per month fees for 12 periods)
- Value after 12 months: $36,400
- Withdrawable (value -2.5% fee): $33,735
- Profit: $15,543 (withdraw – initial – fees)
And a $25K example…
$25K of Black Accounts:
- Initial money in: $26,250 (25 * $1K accounts with 2.5% creation fee & 1st month)
- Total costs: $33,750 (25 accounts + creation fees + $25/mth per account)
- Value after 12 months: $91,000
- Withdrawable (value -2.5% fee): $89,000
- Profit: $55,250 (withdrawable – total costs)
$25K of Black Pools:
- Initial money in: $26,400 (2.5% creation fee & 1st month fees)
- Total additional fees: $27,400 (2.5% per month fees for 12 mths)
- Value after 12 months: $162,434
- Withdrawable (value -2.5% fee): $158,372.75
- Profit: $104,579.65 (withdraw – fees – initial)
With the $25K, even though there is around $50K difference, there are other things to consider, that may mean people still prefer Accounts over Pools, at this level.
There are $27,400 in fees over 12 months for the Black Pool – these need to be paid with “fresh money” or you'd need to withdraw from the Pool however, the Pool withdrawal system is not very flexible — minimum withdrawal is 25%. It would be a tricky one to manage and you'd need a good chunk of cash to get through the first few months….then, if you did withdraw to help cover the fees, this withdrawal will effect compounding (ie. the figures above would no longer be accurate as you'd have less money in the pot).
For perspective, by month 12, the fees are around $4K.
In essence, to get the above results from the Black Pool you would need to have all fees on hand – an extra $27,400. And that is IF the pools hit the 15% (which they seem to have done so far)….ie around $54,000 is actually needed for £25K Pool to get that result😬.
Whereas for the Black Accounts…
You only need the first 3 months fees — an extra $1250 ($625 * 2 — you paid the first month during creation) because after that, you can withdraw and use the withdrawals to pay your fees…..ie around $27,500 is needed for $25K of Accounts.
Furthermore, with Accounts there is no “Tier”; you can do this with as many or few accounts as you wish….eg you could do 20 Accounts…unlike Pools where you need the minimum $25,000 to qualify.
And, with Accounts you can implement a manual compounding of sorts. It's not the easiest to compare as it works very differently to Pools, but essentially, you can re-buy more accounts with your rewards….a compounding effect that will earn you more. One that is flexible; do it when you wish.
Manually compounding Black Accounts
This is where it gets interesting. If you're not convinced about Accounts due to the cashflow, then you may be convinced by this.
Very roughly, if you manually compound the first 6 periods (approx 6 months), by the end of Month 12 you will have more to withdraw than if you'd done a $25K Pool.
A lot depends on how quickly (efficiently) you compound and, unfortunately the release of funds is “up to 28 working days” so you need to factor this variable into your calculations.
Unless the fee structure changes for Pools, one strategy is to have both Accounts and Pools — use the Accounts to cash-flow the Pool fees.
🤯
Yes….even though Xeta Black is “simple” compared to Xeta's original offering (and compared to many other passive income projects), you can see what I mean about how much thinking the user needs to do to decide what is best option for them!
Is there a referral scheme for Xeta Black?
Nope. Whilst other Xeta Capital XON product has a referral aspect aka “friend” (see previous Xeta Capital article), there is none for Xeta Black.
My Experience (& what did I do?)
Well, first I tested with a $1,000 account to see how things worked, then after I was comfortable, I invested more; a fairly sizeable sum, part-funded by selling a Yieldnodes NFT for 13% of it's value 😢 (at time of writing, Jules has kept hers in the balance), a payout from one of the previous private opportunities from last year and a Tangible NFT sale.
The idea was to get some experience with the system and earn some bucks whilst saving to purchase a decent Black Pool in December/January…
My Black Accounts were created over a two week period. They will take 28 days before being eligible to withdraw and then up to 28 days to process (withdrawal)…. all-in-all, the guts of two months after which it should be monthly.
I'll wait until all accounts have hit their 28 days before first claim, so that take us until around 26/27th September before I'll see any cash back in my wallet, around 70 days after I opened my first account (14+28+28).
Whilst I may create more Black Accounts with the withdrawals, in all likelihood I will hold funds back with the hope that if things go well, I will buy into a Pool in December or January, using the remaining Black Account rewards to fund the Pool fees.
Update:
About a week after I created my Black Accounts, Xeta announced a big change — the “beta” was coming to an end and for launch they would be changing all the reward rates, reducing Accounts to 20% and significant reductions to all the Pools, putting the best rates out of the reach of most folks. This would only effect newly created Accounts/Pools from September….
I would have made a different decision if I had that information a week earlier; my choice would have been a pool – too late! 🤦♀️
I will do a post on the new version once it officially launches, eta October.
Update 2: There have been delays in withdrawals being processed during the migration from Xeta Black (beta) to Xeta Genesis (public), this includes migration for other Xeta Capital products which I'm not so familiar with…unfortunately, I'm one of the ones that is delayed. Currently 10 days passed beyond the “up to 28-days” period…hopefully not much longer as it means my fees are overdue and I cannot initiate another withdrawal until they are paid 🙁
Update 3: I've added a placeholder article here for Xeta Genesis (this is the official Xeta product going forward and is currently live as of October 2023 – note, there are some changes compared to Black, including the payout/reward rates).
Update 4: Still no withdrawal has arrived. It's now been a further 20 days after the “up to 28 days” period since my withdrawal request. Whilst I trust the guys, this is frustrating for a number of reasons; (1) “up to” generally implies it should arrive sooner and will almost certainly arrive within that timeframe – messes up planning when it doesnt; (2) with the exception of the first few accounts, my systems should have been self-financing (the 28-day grace period should have given more than enough contingency) – now I have to find more external funds to play the fees; (3) the comms around late withdrawals have not been good regarding what is going on (only in recent days where we told it us due issues with exchanges on/off-ramps). Still there is no info on order of processing, where people are in the queue etc.; (4) Everyone still must pays their fees on time regardless of not being paid on time by Xeta; not a fair way of doing things IMO and the messaging around this has been rather unempathetic.
Have I lost faith in Xeta? No. It's just not been the smoothest of experiences, especially for a first interaction, and finding information involves trawling through hundreds of messages in Discord (many of which are not relevant or are related to other pre-Black products). Overall, it's a given that “being early” in any project generally comes with bumps. This one also included a lot of migration-related moving parts. I trust the team will sort it out soon and, after these issues are resolved, Xeta Genesis will be a much smoother ride.
Update 5: It has now been 63 days since the withdrawal request that should have taken “up to 28 days”. The reason is due to tightened laws around CEXs and withdrawals being held/frozen/limited. However, no information has been provided on the withdrawal request backlog and/or the system for how funds are being distributed as they are released through the CEXs ie. is it in order of withdrawal request or some other order?
