The crypto world is no stranger to controversy, but few recent announcements have stirred as much debate as OKX’s launch of its new Ethereum Layer 2 network, X1. Built in collaboration with Polygon using zero-knowledge (ZK) technology and the Chain Development Kit (CDK), the move positions OKX among elite platforms like Coinbase that are expanding into scalable blockchain infrastructure. Yet, behind the technical promise lies a growing backlash—centered not on functionality, but on a name: X1.
While the ZK-powered Layer 2 aims to bridge OKX’s 50 million users with Ethereum and Polygon ecosystems, its naming has sparked tension with the XEN Crypto community, whose own blockchain project also bears the name X1. This overlap has raised concerns about branding confusion, intellectual property, and community trust in an already competitive space.
The Launch of OKX’s X1 Network
On November 14, 2023, OKX unveiled the testnet launch of X1, a ZK-EVM Layer 2 blockchain developed alongside Polygon Labs. Unlike traditional rollups or sidechains, X1 leverages Polygon’s CDK—a modular framework enabling rapid deployment of customizable ZK-powered chains. This strategic partnership underscores OKX’s ambition to offer low-cost, high-speed transactions while maintaining Ethereum-level security.
"Today, we're thrilled to unveil X1—a ZK-powered layer 2 network that connects the OKX and Ethereum communities to allow anyone to take part in a truly global on-chain ecosystem."
— X1 Network (@X1_Network)
With seamless interoperability and optimized developer tooling, X1 is designed to attract Web3 builders, dApp creators, and traders alike. The goal? To reduce congestion on Ethereum’s mainnet and make decentralized finance (DeFi), NFTs, and gaming more accessible.
👉 Discover how next-gen Layer 2 networks are reshaping blockchain accessibility.
However, excitement was quickly tempered by criticism from an unexpected corner: the XEN Crypto community.
Naming Conflict Sparks Community Backlash
The controversy centers on the use of “X1” as the official name for OKX’s new chain—a name already associated with a separate blockchain initiative led by Jack Levin, founder of XEN Crypto.
Launched in October 2022, XEN Crypto gained viral traction by introducing a novel “Proof of Participation” (PoP) model. Unlike most cryptocurrencies, XEN had no pre-mine, no initial supply cap, and allowed users to mint tokens simply by paying gas fees. Within 24 hours of launch, it generated over 100,000 new Ethereum addresses and accounted for nearly half of all network activity—briefly turning ETH into a deflationary asset due to increased fee burning.
Since then, XEN has expanded across multiple chains, with long-term plans to migrate onto its own dedicated blockchain: the X1 chain, first announced in January 2023.
Now, with OKX launching a competing project under the same name, confusion is inevitable.
“This is insane! You guys know about Jack Levine's X1 Blockchain currently in the pipeline, yet you are using exactly the same trademark? What is wrong with you guys? Do you need a lawsuit to understand that trademark infringement is not a smart thing to do?”
— PLAN-A (@PLANAAA101)
Though no formal legal action has been taken, social media sentiment reflects growing frustration. Many in the XEN community view the naming choice as either reckless or deliberately opportunistic.
FAQ: Addressing Key Concerns
Q: Is OKX’s X1 blockchain technically related to XEN Crypto?
A: No. Despite the shared name, OKX’s X1 is an independent Layer 2 solution built with Polygon’s CDK and has no technical or organizational ties to XEN Crypto or its planned X1 chain.
Q: Has XEN Crypto officially responded to the naming conflict?
A: Founder Jack Levin has not issued a formal complaint. Instead, he used the moment to generate buzz around his project, tweeting about the "free marketing" provided by OKX’s announcement.
Q: Can two blockchains legally share the same name?
A: While names aren't automatically protected without registered trademarks, widespread usage can establish common-law rights. If consumer confusion occurs, legal challenges may follow—especially if one party claims prior use.
Q: Will this affect user adoption of either chain?
A: Potentially. Brand clarity is crucial in crypto. Users might accidentally interact with the wrong network, leading to lost funds or failed transactions—especially during wallet configuration or token bridging.
Q: Has OKX addressed the backlash?
A: As of now, OKX has not publicly commented on the naming dispute. The silence has only fueled speculation within the community.
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Core Keywords and Their Significance
To better understand the stakes involved, consider these core keywords driving the conversation:
- Layer 2: Refers to scaling solutions that operate atop base blockchains like Ethereum. These networks enhance speed and reduce costs.
- ZK Technology: Zero-knowledge proofs enable secure, private validation of transactions without revealing underlying data—key for scalability and privacy.
- Polygon CDK: A development toolkit allowing teams to build customizable ZK-EVM chains quickly.
- XEN Crypto: A community-driven token project emphasizing decentralization and fair distribution.
- Blockchain Naming: Increasingly important as ecosystems grow; poor naming can lead to scams, confusion, and reputational damage.
- Ethereum Scaling: A major focus area as ETH continues to face congestion and high fees.
- Web3 Infrastructure: The backbone of decentralized applications, including wallets, bridges, and developer tools.
- Decentralized Identity: Implicit in projects like XEN that prioritize user ownership and participation.
These terms aren’t just jargon—they represent real shifts in how users engage with digital assets and decentralized systems.
On the Flipside: Risks and Realities
Despite the controversy, OKX’s entry into the Layer 2 space marks a significant milestone for centralized exchanges embracing deeper blockchain integration. However, several risks remain:
- The naming overlap could erode trust among early adopters who value transparency.
- Without clear differentiation, both projects risk being conflated in media coverage and technical documentation.
- XEN holders may feel alienated if they perceive OKX as capitalizing on their community’s momentum.
Meanwhile, XEN Crypto trades at 99.83% below its all-time high of $0.00036977 (October 2022), raising questions about long-term viability—even as it pushes forward with its own X1 chain migration expected in Q1 2024.
Why This Matters for the Broader Ecosystem
This situation highlights a growing challenge in Web3: brand ownership in a decentralized world. Unlike traditional tech companies, crypto projects often lack formal trademark protections early on. By the time legal frameworks catch up, conflicts like this one can already cause reputational harm.
Moreover, as more exchanges and institutions launch native chains, coordination—and courtesy—will become essential. Ignoring existing community initiatives risks fragmenting trust and diluting innovation.
Ultimately, how OKX handles this issue could set a precedent for future collaborations between centralized platforms and grassroots movements.
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The story of X1 is more than a technical rollout—it's a case study in branding, community dynamics, and the growing pains of a maturing blockchain industry. Whether OKX chooses to rebrand or stand firm, one thing is clear: in crypto, names matter just as much as code.