XMON Tokens Plunge 80% After SudoSwap Lock Drop Expiration

XMON tokens plummeted nearly 80% following the end of a lock drop program on NFT marketplace SudoSwap, dropping from $24,000 to around $4,000. This sharp decline is attributed to the lack of utility for XMON and the high selling pressure after the lock drop ended, resulting in a "rug-like" price movement.

XMON Tokens Plummet 80% Post Lock Drop Program Expiration on SudoSwap

March 2, 2023

Xmon (XMON) tokens experienced a precipitous decline of nearly 80% within the last 24 hours, following the conclusion of a lock drop program on the non-fungible token (NFT) marketplace SudoSwap.

According to data from CoinGecko, XMON tokens plummeted from a peak of $24,000 on Wednesday to approximately $4,000 at the time of writing on Thursday. This significant decline coincided with a surge in trading volume, exceeding $22 million within the past day, as selling pressure intensified.

Analysts speculate that the price drop was anticipated, attributing it to the inherent lack of value in XMON tokens. The tokens had primarily been acquired by traders in anticipation of the SudoSwap lock drop program.

In January, SudoSwap distributed its sudo (SUDO) tokens to early liquidity providers and holders of 0xmon NFTs, a collection created by SudoSwap's founding team. Developers introduced a mechanic known as a lock drop, allowing holders of XMON, an Ethereum-based utility token of the 0xmons project, to lock up their tokens on SudoSwap for one month in exchange for sudo tokens.

This lock drop mechanism triggered a surge in demand for XMON tokens in mid-February when sudo became available for trading. Token prices skyrocketed from $19,000 to an all-time high of $43,000 within a single day as traders sought to lock their tokens for eligibility in the lock drop.

However, following the expiration of the lock drop program, traders have found diminished utility in holding XMON tokens. Developers have yet to disclose plans for XMON's future use, leading some in the cryptocurrency community to speculate that the token's primary purpose is as an "NFT collectible."

The sharp decline in XMON token prices underscores the volatility and speculative nature of the NFT market. Traders are advised to exercise caution and thorough research before investing in NFTs or related tokens.