What caused MON's recent price drop? Recently, Monad’s native coin MON experienced a notable decline after X suspended the official account of the blockchain project without providing any explanation. Data from CoinGecko reveals that MON's value plummeted nearly 9% within a day, landing at $0.029. However, it is worth noting that the token has appreciated by 29% over the course of the past month.
The project is part of a concerning trend of account suspensions on X, especially among cryptocurrency initiatives. Monad, which boasts a layer 1 blockchain developed by ex-Jump Trading engineers, found itself entwined in this broader context of stringent moderation from the platform. Just last year, several well-known accounts in the Solana ecosystem faced similar suspensions, including notable projects like Pump.fun, ElizaOS, and the GMGN wallet tracker.
These actions targeted not only official project accounts but also personal accounts of founders such as Alon Cohen and Shaw Walters. While many suspended accounts regained access within weeks, others, notably the accounts of Walters and ElizaOS, remained inactive for an extended period, with restorations happening only in December.
The situation escalated when Walters initiated a lawsuit against X, claiming that the suspension aimed to undermine competition with its in-house AI, Grok, following his refusal to pay a specific API fee.
Monad's public mainnet was launched on November 10, backed by substantial funding of around $225 million from a Paradigm-led Series A round, which attributed a pre-launch valuation of approximately $3 million to the project. The MON token, boasting a total supply of 100 billion, serves critical functions within the ecosystem, including gas fees, staking, and liquidity management.