xMoney, a Web3 payment startup in Europe, launched a new token, XMN, on the Sui blockchain, replacing the previous UTK token. XMN is priced at $0.10 per token with a $1 billion fully diluted value based on a total supply of 10 billion tokens. This move has caused controversy among UTK investors.
The rebranding from UTrust to xMoney took place in August 2023 via a governance proposal that passed with over 92% of the votes. This proposal also changed the token’s economic model, setting a total supply of 1 billion UTK. UTK has been live on the MultiversX network, attracting investors with promises of governance, staking, and cashback opportunities.
UTK holders have the option to convert to XMN at either a 1:1 rate with a six-month lock-up or a 3:1 rate with no lock-up period. The conversion has sparked concerns as XMN has a total supply of 10 billion tokens, diluting UTK holders’ share significantly. For example, holding 100 UTK could result in owning either 100 XMN (locked) or 33 XMN (liquid).
xMoney spokesperson explained the FDV increase justifying the new token’s value citing recent investments in infrastructure, products, technology, and global expansion plans. UTK price dropped 6% following the announcement, creating potential arbitrage opportunities. The company aims to clarify the changes in a Spaces session on September 8.
The conversion rate from UTK to XMN is seen as beneficial for UTK holders due to the price difference. The company highlighted the benefits of the conversion model, including an immediate increase in the value of holdings for those opting for the 1:1 conversion. However, the performance of XMN in the coming months remains uncertain.
xMoney plans to invest in new revenue-generating strategies such as merchant and user acquisition and engagement. Governance voting will determine the next steps, with the company focusing on developing the xMoney ecosystem using XMN’s power. Guilds are being redesigned to integrate with loyalty and incentives programs.
The company is considering options for XMN’s future on the Sui blockchain, aiming to make the best decision for xMoney and MultiversX. The focus is on traction and discussions with the team to ensure the best outcome. The community is encouraged to participate in the governance vote to shape the conversion plan and future steps.
Read more at Yahoo Finance: xMoney Launches New Token on Sui, Old Token UTK Dips Amid Dilution Fears