Over the last 24 hours, Xmon (XMON) tokens have experienced a significant drop of almost 80% in value after the conclusion of SudoSwap's lock drop program on its NFT marketplace. At the time of writing on Thursday, Xmon tokens were trading at nearly $4,000, down from Wednesday's level of $24,000, with trading volumes exceeding $22 million as selling pressure increased.
Some commentators on Crypto Twitter expected this price decline, as Xmon tokens hold no intrinsic value and were predominantly purchased by traders for the SudoSwap lock drop in the past month. In January, SudoSwap had airdropped its SUDO tokens to early liquidity providers and 0xmon NFT holders, and Xmon token holders could lock up their tokens on SudoSwap to receive SUDO tokens after one month, known as a lock drop mechanism.
The rush for Xmon tokens in mid-February when SUDO became tradeable led to a surge in prices, but now, traders are likely finding little use for holding Xmon as more SUDO tokens are rewarded, and developers have not disclosed any utility plans for Xmon, leading some in the Crypto Twitter community to refer to Xmon's primary usage as "NFT collectibles."