Key Notes
- UTK holders face 10-30x dilution as XMN launches with 10 billion supply versus UTK’s 1 billion total tokens.
- Conversion offers 1:1 rate with six-month lockup or immediate 3:1 rate, creating arbitrage opportunities for traders.
- Company justifies higher valuation through recent infrastructure investments and global expansion strategy plans.
xMoney, a leading Web3 payment startup in Europe, announced on September 5 the launch of a new multipurpose token, XMN, on the Sui blockchain. This, however, raised controversy among UTK investors, who held the until-now official multipurpose token for the platform.
The change comes amid an announced expansion from MultiversX to Sui, described as “xMoney’s next stage of growth,” explaining that “the future of xMoney will not be limited to one system or one chain.” 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.
xMoney was formerly known as UTrust, being acquired by MultiversX Labs, formerly Elrond, in January 2022, based on a previous Coinspeaker report. The rebranding from UTrust to xMoney happened in August 2023 via a governance proposal that passed with over 92% of the votes. Besides the rebranding, this proposal, named UTK 3.0, also changed the token’s economic model—setting a total supply of 1 billion UTK, as opposed to the aimed 250 million cap deflationary model promoted at the UTK 2.0 proposal post-acquisition.
UTK has been live on the MultiversX network since then, attracting investors under the premise of being a governance, staking (for xMoney’s merchant guilds), and cashback token. In February 2025, Beniamin Mincu, MultiversX Foundation’s CEO, communicated that xMoney and other MultiversX Labs-owned companies were becoming independent. Greg Siourounis later joined as xMoney’s new co-founder and CEO, coming from a managing director position at the Sui Foundation.
UTK Price Analysis as Dilution Fears Surge With XMN Conversion Rates
Notably, the old token, UTK, will be deprecated, according to the announcement. UTK holders will have the option 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. The controversy surges as UTK has a total supply of 1 billion tokens, which is ten times lower than XMN’s 10 billion.
This effectively dilutes UTK holders’ share by 10 or 30 times—depending on the conversion strategy—on everything related to xMoney, including governance voting weight and financial exposure to the startup’s growth.
For example, 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.
Coinspeaker talked to an xMoney spokesperson while writing this story—the full interview can be found below—who explained the FDV increase “is justified by the investments that xMoney has recently done,” mentioning payments infrastructure, products, technology, global expansion plans, and more.
From xMoney’s perspective, the 1:1 conversion rate is “excellent” for UTK holders. The spokesperson highlighted the current UTK price at $0.027 related to XMN’s $0.10 listing price. Thus, justifying the 3:1 conversion rate as a fair price and “an immediate 3x increase in the value of their holdings” for those opting for the 1:1 conversion. The latter, however, will depend on how XMN performs in the next six months, having no guarantees on the realization of the mentioned “3x increase.”
UTK is down 6% in the last 24 hours of this writing, experiencing a significant drop after xMoney’s announcement. Interestingly, the current price drop and the conversion mechanism could create arbitrage opportunities for experienced traders, but caution is needed.
xMoney (UTK) 24-hour price chart as of September 5, post-announcement | Source: CoinMarketCap
Responding to an interaction on X talking about the dilution fears, Bayar Ali, CFO at xMoney, acknowledged the challenges it may impose related to the protocol’s governance, saying these processes are yet to be defined. He did not expand on the financial and economic aspects of it.
I want to address the dilution problem. I do agree that it may pose a problem for governance, this is actually the only place I think we have to discuss intensively.
We have not yet defined the new governance process – it’s on the roadmap. But we will need to address several…
— Bayar Ali (@bayar_ali) September 5, 2025
The company will host a Spaces session on X on Monday, September 8, aiming to bring more clarity to the changes, as Greg Siourounis just posted.
Join us on Monday as we’ll share not just what’s new with $XMN, but also go through the main questions this upgrade has raised. It’s all about clarity! https://t.co/l5Sfjbh6KJ
— Greg Siourounis (@xMoneyGreg) September 5, 2025
Coinspeaker Interviews xMoney’s Spokesperson
1. Why launch a new token instead of bridging UTK to Sui, following the expansion? Can’t it be seen as neglecting UTK holders’ investment in xMoney (with the goal to benefit from its growth)?
Indeed, XMN is a new token, it is much more than a rebranding or a conversion. In order to effectively execute the new xMoney strategy, we decided to issue a new token that has a much wider scope than UTK allowed us to implement. XMN will provide incremental value to the participants in the xMoney ecosystem, compared to UTK e.g. building the loyalty platform from the ground up, providing grants and support to projects building in our ecosystem, incentives in the form of rewards, benefits and quests to users, merchants, aggregators, marketplaces and other ecosystem players and much more that we will disclose in due time.
We highly value the support of the UTK community, and we want to reward their trust and patience in the last few years, even though we acknowledge that in the past we could’ve done a better job communicating with them. That’s why we built the conversion model from UTK to XMN with the benefit of the UTK holders in mind, especially an excellent 1:1 conversion rate if they lock the new tokens for 6 months, which gives them an immediate 3x increase in the value of their holdings. On top of that, the increased APR and the NFT consolidate our expression of appreciation towards our token holders. We’ve put a lot of thought in the conversion model, and you will see that it is in fact, a very rewarding proposal.
2. Why do a 3:1 or 1:1 conversion rate (UTK:XMN) instead of a 1:10 conversion rate, proportional to each token’s total supply (1B:10B)?
A 1:10 conversion rate would be applicable if this was just a token conversion or migration. In reality, with the launch of XMN we’re talking about a significant increase in the scope of the token which comes together with the increase in FDV that you and the rest of the community noticed. This is justified by the investments that xMoney has recently done in its payments infrastructure, products and technology, as well as to the updates in strategy, which include global expansion plans, product upgrades and improved organization and effectiveness.
To assess the 1:1 conversion rate you have to look at the current UTK price and the XMN listing price, to assess the additional value provided to the UTK community. On top of that, the NFT will be a unique and once-in-a-lifetime mint designed specifically for the UTK community, that will have a lot of benefits attached to it.
2.B. Is it correct to understand that the supply-based dilution is seen as a fundraising strategy for these things you mentioned?
In the next few weeks, we will expand more on what the usage of the treasury and community allocations is planned to be. The objectives are much more than just this, but yes, we will invest in the growth and development of our ecosystem. Greg mentioned a Growth Fund in Monday’s Founders Session, but what’s important to be aware of is that the tokenomics are built so that the token emissions are in line with business growth, which means that inflation should be under control.
We will invest in new revenue generating strategies, e.g. merchant acquisition, user acquisition, engagement and retention, incentives based on behavioral economics to drive desired behavior in ecosystem players. And remember that revenue goes back to MultiversX as well.
3. What will be the remaining utility and roadmap for UTK moving forward? What about the Guilds?
We’re running a governance vote to determine what the next steps will be. We encourage the UTK community to participate in the vote, which will also provide more information with regard to the conversion plan and the different options available to them. Eventually, we will stop the support for UTK, as we will be fully focused on developing the xMoney ecosystem using XMN’s power.
With regard to Guilds, we’re currently redesigning how they will work and how we will implement the concept in the XMN space, with focus on the initial concept of guilds as merchant driven sub-communities, but fully integrated with the wider loyalty and incentives programs that our ecosystem participants will benefit from.
3.B. (follow-up question) What are the plans toward MultiversX, if the MultiversX-native token will have its support stopped? Do you plan to bridge XMN to MultiversX at some point, or launch it natively there?
We’re considering the best option, but it depends a lot on the traction that XMN gets in the SUI blockchain. We have several options that we discussed with the MultiversX team and we’re going to make a decision that’s best for xMoney and MultiversX.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vini Barbosa has covered the crypto industry professionally since 2020, summing up to over 10,000 hours of research, writing, and editing related content for media outlets and key industry players. Vini is an active commentator and a heavy user of the technology, truly believing in its revolutionary potential. Topics of interest include blockchain, open-source software, decentralized finance, and real-world utility.
