The Problem

Blockchain and artificial intelligence (AI) are two transformative technologies that are increasingly converging in innovative ways. However, decentralized AI systems face critical challenges in interoperability, incentive alignment, and scalability - issues that are often overlooked in speculative AI-token projects [1].

• Up to 85% of AI projects fail due to weak use cases, poor integration, or unsustainable business models [2].

• Over 60% of AI-related crypto tokens exhibit pump-and-dump behavior within 30 days of launch [3].

• User retention across Web3 applications remains critically low, often below 12% after 30 days [4].

These conditions have led to:

• Loss of user trust

• Drainage of ecosystem liquidity

• Minimal real-world adoption

• Poor user retention (<12%) [4].

The result?

A bloated, noisy landscape where the few truly valuable AI x Web3 projects struggle to stand out - choking innovation and investor confidence.

We call this the 99% Useless AI Crisis - and it’s what Xeleb aim to solve.

Let's explore what we're cooking...!

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References

[1] Vid Kersic, Muhamed Turkanovic: "A Review on Building Blocks of Decentralized Artificial Intelligence", ICT Express, 2025 (Elsevier)

[2] Gartner: "Why 85% of AI Projects Fail and What to Do About It", Gartner Research, 2023

[3] Chainalysis: "Crypto Crime Report 2025", Chainalysis Research, 2025

[4] Dune Analytics: "Web3 User Retention Dashboard", hildobby, 2024