xMoney Launches XMN Token on Sui Blockchain, UTK Price Drops
xMoney launched a new multipurpose token, XMN, on the Sui blockchain on September 5. This shift has caused controversy among UTK investors, who previously held the platform's official token.
The transition accompanies an expansion from MultiversX to Sui, positioning xMoney for broader growth beyond a single system or chain. Key details include:
- XMN will launch at $0.10 per token with a fully diluted value (FDV) of $1 billion and a total supply of 10 billion.
- xMoney, formerly UTrust, was rebranded after being acquired by MultiversX Labs in January 2022.
- A governance proposal allowing this change passed with over 92% support, modifying UTK's economic model to a total supply of 1 billion tokens.
UTK will be deprecated, offering holders a choice between conversion rates of 1:1 (with a six-month lock-up) or 3:1 (without lock-ups). This effectively dilutes UTK holders' stakes significantly—by 10 or 30 times—impacting governance voting weight and financial exposure.
For instance, if Alice holds 100 UTK, post-conversion she would hold either 100 XMN (locked) or 33 XMN (liquid), resulting in reduced ownership percentages.
UTK has dropped by 6% following the announcement. The conversion mechanism may present arbitrage opportunities, but caution is advised. The CFO acknowledged dilution concerns regarding governance processes, which are still being defined.
Upcoming discussions will clarify these changes, as indicated by xMoney's leadership.
Key points from the interview with xMoney’s spokesperson include:
- The decision to launch XMN was based on its capacity to offer more than what UTK could provide.
- The conversion rates were designed to reward UTK holders while facilitating necessary growth investments.
- Future governance and the roadmap for UTK will be determined via community votes.
The company plans to integrate feedback and adapt its strategies based on XMN's performance on the Sui blockchain.