xMoney Launches New Token on Sui, Diluting UTK Holders Amid Expansion Plans

xMoney, a Web3 payment startup in Europe, has launched a new multipurpose token, XMN, on the Sui blockchain. The old token, UTK, has seen its price dip amid dilution fears, with UTK holders facing a 10-30 times dilution in their share of xMoney's governance voting weight and financial exposure. UTK holders can choose to convert to XMN at a 1:1 rate with a six-month lock-up or a 3:1 rate with no lock-up periods.

xMoney, a leading Web3 payment startup in Europe, has launched a new multipurpose token, XMN, on the Sui blockchain. This move has raised concerns among UTK investors, who previously held the official token for the platform. The change comes amid an announced expansion from MultiversX to Sui, described as "xMoney’s next stage of growth."

XMN will be launched at a $0.10 price per token and with a $1 billion fully diluted value (FDV), considering a 10 billion total supply. The old token, UTK, will be deprecated, with UTK holders able to convert at either a 1:1 rate, facing a six-month lock-up, or at a 3:1 rate, with no lock-up periods. This conversion mechanism has effectively diluted UTK holders' share by 10 or 30 times in terms of governance voting weight and financial exposure to xMoney's growth [1].

The controversy surges as UTK has a total supply of 1 billion tokens, which is ten times lower than XMN’s 10 billion. For instance, Alice currently holds 100 UTK, resulting in a 0.00001% share of the total supply. Post-conversion, Alice will hold either 100 XMN (locked for six months) or 33 XMN (liquid), resulting in a 0.000001% or a 0.00000033% share of the total supply, respectively [1].

xMoney's spokesperson explained the FDV increase is justified by recent investments in payments infrastructure, products, technology, and global expansion plans. The 1:1 conversion rate is seen as excellent for UTK holders, providing an immediate 3x increase in the value of their holdings if they lock the new tokens for six months [1].

UTK has been down 6% in the last 24 hours following the announcement, with the current price drop and conversion mechanism potentially creating arbitrage opportunities for experienced traders [1].

xMoney will host a Spaces session on September 8 to provide more clarity on the changes and address the dilution fears. The session will be hosted by Greg Siourounis, the new co-founder and CEO of xMoney, who joined from the Sui Foundation [1].

References:
[1] https://cryptorank.io/news/feed/4e725-xmoney-launches-new-token-on-sui-old-token-utk-dips-amid-dilution-fears