The XMON token price is facing strong selling pressure after the end of the token lockout period to receive the Sudoswap (SUDO) airdrop.
Like Kyptos Reportedly, the AMM platform for NFT that has received a lot of attention recently is SudoSwap, which has announced the schedule of SUDO token airdrops for users in September 2022.
SUDO will be the governance token for sudoAMM, the NFT swap protocol developed by Sudoswap. This is a project that has received a lot of attention from both the NFT investment community and traditional AMM projects like Uniswap because of its extremely effective liquidity creation solution for a difficult-to-trade asset such as NFT.
With an initial supply of 60 million tokens, up to 41.9% of SUDO tokens will be airdropped to XMON token holders. This is the token of the previous project of the founder SudoSwap 0xmons.
As a rule, XMON holders must lock up their tokens within 1 month, with an airdrop rate of 1 XMON = 10,000 SUDO. Airdrop starts on February 1st, 2023, users need to lock tokens for 1 month, meaning tokens are fully unlocked on March 1st.
Therefore, it is understandable that the XMON price was heavily dumped after the token was unlocked. Especially when XMON has almost no role to use other than to lock to receive SUDO.
Within the last 24 hours, that is, right after the lock-up period ended, the price of XMON dropped by more than 90% because of the strong selling pressure.
#PeckShieldAlert #Slippage $XMON has dropped -91.6% pic.twitter.com/5Kvm6WLNWP
— PeckShieldAlert (@PeckShieldAlert) March 2, 2023
JUST IN: $XMON has fallen by 79.4% to $5114.31 following the end of the @sudoswap lockdrop.
previously, #XMON holders could lock up their tokens to receive Sudoswap’s governance token, $SUDO.
: https://t.co/BfB4eFlZZf pic.twitter.com/v4yCfFILk5
— CoinGecko (@coingecko) March 2, 2023
If the founders do not design another utility to motivate users to buy and hold XMON, it will be difficult for the price of this token to recover from this strong sell-off.
Meanwhile, SUDO price has not changed much in the past 24 hours, trading around 2.1 USD.