Decentralized physical infrastructure networks (DePINs) are rapidly gaining momentum, with forecasts predicting the sector will reach $3.5 trillion by 2028.
One of the pioneers is XYO, A blockchainThe data-powered company was founded more than seven years ago and has grown into a network of more than 10 million people Contract.
To understand how XYO handles exchange listings, community building, and regulation, while preparing to launch its own platform Layer-1CCN spoke with Marcus Levine, co-founder of XYO. Here is the full video:
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The new reality of stock market listings
When asked about Kraken’s requirement of $8.8 million in verifiable revenue to qualify for listing, Levin was quick to note how dramatically the industry has shifted.
Three years ago, the market often rejected projects that generated revenue. The presence of revenue has raised questions about whether the team is too centralized or too profit-driven.
As Levin said: “In the cryptocurrency community, there are these hippies who have no limits. We don’t live in limits, and we don’t live in profit by any means.”
“That worked well until we had bear markets and token prices dropped, and then suddenly all of these projects stopped working because they didn’t have any revenue. So today this question is often asked when listing apps – what is your business model, how do you generate revenue? If you don’t have those projects, it’s unlikely you can list them on exchanges.”
He continued: “It is a remarkable shift because no one asked this three years ago. I think it is evidence of this so-called concept Demin– Decentralized physical infrastructure networks.
What XYO actually does
When asked to explain XYO in simple terms, Levin described it as a data company based on blockchain technology.
“We are one of the decentralized physical infrastructure networks, or DePINs, and we started with the first one over seven years ago. Essentially, we are a data company that runs on blockchain technology. In less simple terms, we do it for location. We can prove that location data is valid and valid, so you have certainty about location.”
He went on to explain that XYO has evolved beyond location verification to collect and validate other forms of data, including sensory data and even offline data, which can then be linked to smart contracts or integrated with Web2 partners.
In practice, XYO uses a network of nodes to verify where something exists in the real world and pins that proof on the chain. This creates tamper-resistant records for use cases like supply chain tracking, delivery confirmations, and even verifying that devices or people are at a specific place and time.
Levin added that, unlike traditional platforms, XYO users own the data they generate as one of their key value propositions, giving them complete control.
In a world where if you don’t pay for the product, you are the product, XYO flips the model and users can choose to keep their data private or actively monetize it for rewards.
“That’s absolutely true. You own your own data and that’s the beauty of it. You can monetize it or keep it private any way you want — unlike Google or Facebook, where you don’t own your data, you don’t know what happens to it, and you don’t benefit from it outside of using the product.”
The Post-ICO Era: From the Rise of Community to the Dominance of Venture Capital
Looking at the fundraising landscape, Levin pointed out the differences between ICOs and ICOs (ICO) The era of community financing and today’s venture capital-driven environment.
“I feel two ways about ICOs.”
During the ICO era, projects were truly community-driven, with retail participants getting the same access to token sales as venture capital firms, Levin said. He noted that XYO took this approach in 2018 and 2019, even through a bear market, raising $40 million while refusing to offer preferential terms to venture capital, a decision that some investors disliked but that kept the fundraising fair for the community.
“It’s a little different today, unfortunately,” Levin said. “A lot of times the venture capitalists come first and the community comes second in fundraising. I don’t like that.”
He added that he expects this trend to shift again, with community participation regaining its importance. In his view, future fundraising will likely include longer lock-up periods for investors to ensure they cannot exit before the community benefits.
Why DePIN could be worth $3.5 trillion by 2028
Levin is optimistic about DePIN’s potential, citing expectations for accelerated growth.
He stressed, “Isn’t this an incredible number? Three and a half trillion dollars. I think we have about one hundred billion today. And this is within two and a half years. It is very confusing.”
Then he said: “DePIN is going to change the world.”
“Being a part of it now is like being at the beginning of something huge. So I encourage others to join, not just to invest in projects, but to build projects because there is a lot of growth to be had over the next three years.”
For Levin, transparency will separate sustainable projects from the hype.
Levin noted that DePIN projects have an advantage because they can generate real revenue early. He explained that XYO became the first computer company in the United States to obtain SEC qualification for a Regulation A offering, which allows it to sell shares to non-accredited investors.
“Then we are symbolic Those stocks are listed as well. We now have annual and semi-annual filings with the SEC and audited financial statements. “You can’t be more transparent than that.”
Looking to the future: The first layer era of XYO
Levin concluded with a look at what success means for XYO beyond listings and market cycles.
“We have something really exciting, which is the new XYO Layer One. The success for us is that DePINs and data-focused projects are working on our first layer,” he stressed.
“We have been dealing with data for more than seven years, and initially, we hoped that someone else would build a blockchain optimized for it. But no one has the quality of data like us, so we decided to build it ourselves.”
During 2025 and 2026, XYO aims to launch more features on XYO Layer One, expand partnerships, and put the entire XYO DePIN network on-chain, Levin noted.
Only time will tell if XYO’s Layer One vision is able to set standards for data-centric blockchains and drive broader adoption of DePIN projects.
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The information in this article is for informational purposes only. It is not intended to be, and should not be construed as, financial advice. We make no guarantees about the completeness, reliability or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We advise you to consult a financial advisor before making any investment decisions.
