In this sponsored episode of The Bad Crypto Podcast, Joel and Travis welcome back Markus Levin, co-founder of XYO Network, a project first featured on the show back in the ICO days of 2018. Unlike many projects from that era, XYO is still building.
The conversation centers on a huge problem in both crypto and AI: digital systems are often blind to the real world. Smart contracts, AI agents, apps, and autonomous systems can process data, but they do not automatically know whether that data is true, where it came from, or whether someone tampered with it.
That is where XYO comes in.
Markus explains how XYO has evolved from a proof-of-location network into what the team describes as a truth layer for real-world data. Using devices, mobile phones, sensors, NFC tags, cryptographic proofs, and its own data-focused Layer 1 blockchain, XYO is working to verify events, actions, assets, and real-world information so AI systems and blockchain applications can operate with greater certainty.
Joel, Travis, and Markus also dig into the COIN app, which allows users to earn rewards for contributing real-world data, and the broader XYO ecosystem, including the XYO token, XL1 token, proof of origin, zero-knowledge privacy protections, and the newly announced AI infrastructure verification partnership with Setter Labs.
The big idea: as AI becomes more powerful, the question may not be whether a model can generate an answer. The question is whether it can prove where that answer came from.
Topics Covered
Why AI agents and smart contracts are still “blind” to the physical world
How XYO began as a proof-of-location project in 2018
Why GPS and location data can be spoofed
The role of blockchain in verifying real-world events
What “proof of origin” means and why it matters
How XYO collects and verifies real-world data
Why bad data may be one of AI’s biggest problems
How verified data could reduce AI hallucinations
The COIN app and how users can earn rewards for data collection
XYO’s Layer 1 blockchain and the XL1 token
The difference between XYO, XL1, COIN, and other ecosystem assets
How zero-knowledge proofs help preserve privacy
Why decentralized physical infrastructure networks may become increasingly important
How XYO is moving into AI infrastructure and AI agent verification
The new XYO AI SDK and what developers can build with it
Why long-term survival matters in crypto
Joel’s reminder that sponsored projects must still pass Bad Crypto vetting
Featured Guest
Markus LevinCo-founder of XYO Network
Links Mentioned
XYO Network: https://xyo.networkCOIN App: https://coinapp.coBuild with XYO: https://xyo.network/buildPartnership inquiries: partnerships@xyo.network
Disclosure
This is a sponsored episode of The Bad Crypto Podcast. Joel and Travis were compensated to feature XYO Network, but the project passed their vetting process before being brought to the Bad Crypto audience.
Support the show: https://badcryptopodcast.com
See omnystudio.com/listener for privacy information.
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