As we are now live on LATOKEN Exchange, please take note of the information below before deciding to move your MNTT tokens there to sell.
The LATOKEN Exchange wallet does not take into account distribution from the MNTT contract.
Currently the smart contract has about 3%.
If someone bought 100m MNTT from Pancake and received 100m MNTT from a friend, they would receive 90m MNTT after tax. However, the final value of their wallet is 92.7m MNTT (received MNTT multiplied by the smart contract value). The smart contract is meant to act as a natural tax cushion over time.
Currently there is a tax on all transactions (including transfers between wallets). Assuming we want to sell 100m MNTT (10% tax bracket) on LATOKEN Exchange, the following transactions must take place:
- Existing holder moves to LATOKEN wallet (90m MNTT received in LATOKEN wallet)
- Submit market sell or limit sell on LATOKEN Exchange
- Once the order goes through, MNTT transfers from the LATOKEN account wallet to the LATOKEN hot wallet (81m MNTT sold).
In the above example, selling on LATOKEN would cost holders a total of 19% in tax, whereas selling on Pancake would be still 10%.
Therefore, we expect that MNTT will be trading at a 25–40% premium initially at LATOKEN, because if a bot tries to arbitrage MNTT from Pancake → LATOKEN, it will take 3 transactions. This means a 27.1% tax on the initial purchase. Assuming 100m MNTT is bought from Pancake, by the time it is sold on LATOKEN, it will only be valued at 72.9m. In order for 72.9m to be equivalent to 100m MNTT, the price must be traded at higher than 37%.
Note, the LATOKEN wallet distribution problem will only affect deposits (basically the sellers). For buyers from LATOKEN, it will be coming directly from the hot wallet. There is no tax during hot wallet trades, since it is an internal trade. The transfer of MNTT hasn’t happened yet. However, once the buyer withdraws from LATOKEN to outside, the transaction tax will happen just like a purchase from PancakeSwap.
For buyers from LATOKEN, it will be coming directly from the hot wallet. During hot wallet trades there is no tax, since it is an internal trade. The transfer of MNTT haven’t happened yet. However once the buyer withdraws from LATOKEN to outside, the transaction tax will happen just like purchase from Pancake Swap.