Just wanted to say in case others see this, you can buy a .xyz domain from reputable places (maybe for a higher cost). I believe the OP is talking about the specific site 'gen.xyz'.
I have an xyz domain with Cloudflare, host many things on it (like Jellyfin), and haven't had any issues yet.
Edit: as many have pointed out, my understanding of registrars was wrong and gen.xyz actually owns all xyz tlds. Sleep in fear if you own one I suppose
From what I've seen/heard, if you follow the ToS (usually by not proxy-ing hosts that shouldn't be proxied or are in violation if they are) there's nothing to be afraid of ¯\_(ツ)_/¯