The value of XMON token, introduced by Sudoswap’s creators, has drastically dropped by 80% in 24 hours following the end of a lock program.
Before now, XMON holders were previously able to lock their tokens to receive Sudoswap’s governance token, $SUDO.
Data from CoinGeko shows that the token exchanged hands at nearly $4,000 at writing time on Thursday, after falling from a high of $24,000 on Wednesday.
Immediately after the unlock, selling pressure quickly gained momentum, with more investors selling their holdings as the price continued to plummet while the low liquidity also caused high slippage and huge price movement.
The transition of Sudoswap’s sole governance token to $SUDO also affects the functionality of the XMON token, limiting it to NFT collectibles.
Responding to the drastic price movement, a number of crypto experts, investors and observers have positioned that the situation is not far from a rug-like downward movement having lost more than 80% value in just 24 hours.
Similarly, some crypto enthusiasts on Twitter also noted that the price drop was expected as the token inherently holds no value and was mainly bought up by traders in the past month for the SudoSwap lock drop.
In February, prices of XMON tokens jumped from $19,000 to lifetime peaks of $43,000 in a single day as traders purchased the tokens in anticipation of the SudoSwap airdrop.
Going forward, Investors King understands that such a dramatic turn of events including the fall of FTX will reinforce the call for crypto regulations across the world.
It would be recalled that the collapse of FTX took the world by a surprise and put the crypto industry on the hot seat. Losing billions of dollars, a number of big companies and individuals were victims of the collapse.
Already, a number of European countries including France and the UK have started a process to regulate the cryptocurrency industry in order to protect retail consumers.
Additionally, Hong Kong and several Asian countries have also started the same process for the same purpose.
