Mar 2, 2023 at 05:40XMON, 0xmons NFT platform native token, suddenly dropped by 86,72% for a day — from $34261,61 to $4550,05 — and continued falling. Moreover, there is an opportunity that the asset will fall to zero, and some experts urge holders to get rid of the token as soon as possible. Let’s figure out what caused such a decline and whether everything is so bad.
What happened?
It all started when the decentralized NFT marketplace Sudoswap announced an airdrop of its own SUDO governance token on January 30.
It’s time >s<$SUDO governance will be launched later today, along with the lockdrop and airdrop.
SUDO is initially non-transferable. Transferability can be enabled by a standard governance vote.
Read below for more details
— sudoswap (@sudoswap) January 30, 2023
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Assets were given away:
- The developer team owns 30% of the token, which will be unlocked in one year.
- 25,1% goes toward the treasury.
- 3% was airdropped to 0xmons NFT holders and past liquid pool members.
- 41,9% went to the XMON lock.
As part of the collaboration, XMON holders could lock their tokens to maintain liquidity in the Sudoswap pool for a month. Thus, each XMON user could get 10K SUMO per XMON. Current circulation supple is 1,494.92 coins, and max supply is 10K XMON. The blocking period was one month, from February 1 to March 1.
It is assumed that many holders of XMON agreed to the terms of Sudoswap. Because as soon as SUDO became available for trading, the value of XMON increased significantly.
According to CoinMarketCap, before the drop, from February 1 to March 1, XMON rose by 30,14%, from $18472.63 to $26444.01. And on February 19, the asset soared to a peak of 44777.66% (+58,75%). At the time of writing the asset is trading $3,426.75, that is less, in comparison with the peak state, at 92,35%.
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Why XMON holders need SUDO is another question, but it can’t even be transferred for now. In the SudoSwap ecosystem, it will be used for voting in the protocol management structure. But these restrictions can be removed in the future, which is probably what the participants in the airdrop are hoping for. By the way, at the time of writing, SUDO is also falling. The token now trades at $1.89 (-9,28%), which probably caused XMON to fall.
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The fall wasn’t an accident?
Crypto and NFT trader Inconitusboi voiced one more possible reason for XMON’s fall. So, in his opinion, the asset falls unnaturally, and probably whales are to blame.
“XMON is NOT naturally going down. It is being pushed down by whales placing spoofy sell orders on exchanges to make noob and risk managers sell to buy back lower. They will make you buy back at a higher price,” he suggested.
Ryan alriza, a crypto and NFT trader, reinforces his theory. He noticed that “too many whales exit from XMON.” Therefore, he actively urges people not to buy the token.
Dont buy $XMON Team and Dev selling XMON worth $40M+ on dex too many fudd from other social media i think will add zero and now all exchange close deposit this coins , im only say dont buy#cryptocurrencies #Crypto #bitcoin #exchange #bnb #nft pic.twitter.com/WXWTMHEG80
— Ryan alriza | #Bitski (@Ryanalriza6) March 2, 2023
Anyway, some users are still buying the asset. According to Etherscan, there are 2,888 holders now, which is 500 more than a day ago.
500 new holders last 2 hours on $XMON – sharks eating well tonight after that opportunistic dump. 2-3x from lows
— Samuuuu (@Samuuuu_ETH) March 2, 2023
Based on the first version, there are reasons to believe that the token’s fall was inevitable. Earlier, we reported on how unlocking affects cryptocurrency. In a few words, while the token is blocked, there is less of it on the market, so there is more demand, and after the unlocking, there is more of it. And where there is more offer, there is less demand, and the price falls.
However, there were other signals that the token would fall. According to An Ape’s Prologue analysts, who conducted a thorough analysis of the situation back on February 21, XMON was practically doomed to fall. The reason is that the token did not have a new utility planned.
4/ With the shift towards $SUDO as the sole governance token for Sudoswap, the value proposition of $XMON will primarily be as an NFT collectible.
Unless there is a new utility planned for $XMON, its value will likely drop sharply immediately after the lockdrop ends
— An Ape’s Prologue (@apes_prologue) February 21, 2023
Will XMON recover from this?
At its recent peak, XMON resembled Bitcoin in its best days, but now it is closer to Ethereum. And, according to various speculations, the asset now has two paths. One of them is that the token will fall to zero in the near future. с h e e s u s, a crypto specialist, suggested this possibility on March 1.
He assumed that XMON would fall to zero by March 1 at 10:00 p.m. EST. That didn’t happen, but we can’t say it won’t happen either. The token is still falling. That’s why he’s urging users to get rid of the asset.
$xmon price target 0 by March 1 10:00 PM EST
you have less than 24 hours
to get rid of it— c h e e s u s (@0xCryptoGenius) March 1, 2023
However, whether XMON will recover or not is still unclear. According to investor and trader QueenCryptoCat, in order not to incur losses, users should, instead of blocking for a whole month, just stake XMON for 11 days.
“Apparently, you only had to stake XMON for 11 days. The token bounced x8 from bottom of the candle to the top. Impressive if you knew unlock was happening on March 1 for everyone who locked up from Feb 1 till March 1,” she said.
But who knew the token would drop so much? And what do you think — will XMON recover or has the asset lost its value forever? Write about it in the comments.
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