Xmon (XMON) tokens fell nearly 80% in the past 24 hours following the end of a lock drop program on NFT marketplace SudoSwap.
The tokens exchanged hands at nearly $4,000 at writing time on Thursday, falling from Wednesday’s $24,000 level, CoinGecko data shows. The tokens ramped up trading volumes of over $22 million in the past day as selling pressure quickly gained steam.
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With no new utility planned for $XMON, holders that did not lock it started to dump when the lockdrop ended.
The low liquidity on $XMON causes high slippage and huge price movement.
This resulted in a rug-like downward price movement. pic.twitter.com/xp7kJC9Od3
— HashBrown Research (@Hashbrown_Tech) March 2, 2023
Some on Crypto Twitter said the price drop was expected as Xmon inherently hold no value and were mainly bought up by traders in the past month for the SudoSwap lock drop.
$23,363.90
$1,633.54
BNB$299.25
XRP$0.37735408
$12.94CoinDesk reported in January, SudoSwap airdropped its sudo (SUDO) tokens to early liquidity providers as well as holders of 0xmon NFTs, an NFT collection created by Sudoswap's founding team.
Developers said at the time that holders of Xmon, an Ethereum-based utility token of the 0xmons project, could lock up their tokens on Sudoswap to receive sudo tokens after one month. This mechanism came to be known as a lock drop.
That created a rush for Xmon tokens in mid-February when sudo initially become tradeable. Prices of xmon jumped from $19,000 to lifetime peaks of $43,000 in a single day as traders purchased the tokens, and then locked those for becoming eligible for the sudo lock drop.
Now, traders likely find little use for holding xmon as more sudo is rewarded. Developers have not released plans for Xmon utility – causing some in the Crypto Twitter community to liken xmon’s primary usage as “NFT collectibles.”
$23,363.90$1,633.54
BNB$299.25
XRP$0.37735408
$12.94DISCLOSURE
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