Monday the 3rd of march crypto.com
announced the MCO
swap basically they're going to remove
their ico coin
mco and replace it with their new coin
cro the reason that they're doing this
and i quote the crypto.com
ceo to get fully regulated as a business
which isn't possible with an ico
so how does this regulation work and why
didn't they think of this
from the start to understand the process
we're going to start with a timeline
in june 2016 the company monaco was
founded
in may 2017 monaco launched the mco
token sale one month later the sale of
the mco token raised
26.7 million us dollars in july 2018
monaco rebranded to crypto.com
in november 2018 the new coin cro was
announced
and the CEO Kris Marszalek said that
there won't be a swap
from MCO to the CRO coin and then
almost two years later in
august of 2020 the mco-cro swap was
announced so the swap didn't happen
overnight there were also quite some
services and events that proceeded to
swap
but most of these services got cancelled
by crypto.com
due to regulatory issues
in the beginning on the crypto.com
platform when it was still called monaco
there was a licensing fee of one percent
on all
transactions this fee got sent to an
asset contract
the more mco you had in your possession
the more of the mentioned
fee money you would be able to get from
the asset contracts
so if you had a lot of mco you would be
able to burn a part of this to receive
ethereum or bitcoin this was a very good
incentive for people to buy
mco because the more mco you had the
more bitcoin
or ethereum you could receive but all of
a sudden in october
of 2017 crypto.com decided to cancel
the asset contracts they claimed that
the reason for this were changes in the
regulatory environment
as a compensation they increase the card
cashback rates by
two percent
for the next one we're going to go back
to the timeline in july 2018
monaco were banned to crypto.com and in
november 2018
cro was announced so together with the
announcement of cro they also announced
airdrops air drops meant that holders of
mco were going to receive
zero so if you were going to hold mco
for a period of time
then you would be able to receive
airdrops containing cro
for a period of five years this again
like the asset contract was a good
incentive for people to buy and hold
mco in this hero white paper it was
stated that 10
of all created cro was set aside for
airdrops to mco
holders the first air drops happened
from the 9th of december 2018
and not five years but only seven months
later on the 25th of june 2019
crypto.com announced that they were
going to cancel all airdrops
the reason for this was the upcoming us
car launch
so again regulatory issues
again we fast forward almost two years
later and we get to the third and
final step on august 3rd of 2020
crypto.com announced the mco
swap program the mco token would cease
to exist and all
mco would get swapped to cro the
compensation that was offered
was a 20 swap bonus for early swappers
plus they decreased the amount of cro
you needed to stake to get
the krypto.com visa cards but i have to
add that first they increase the cost to
then
lower it drastically again the reason
for the swap was to get fully regulated
as a business which wouldn't be possible
as an ico
which mco was so again third time in a
row
regulatory issues so the keyword of the
four mentioned
services the asset contract the airdrops
and
the swap was regulation this seems like
a legit answer but i want more
information
so i've tried to contact crypto.com
through discord their support
telegram and reddit to ask what rules
and regulations specifically
were blocking but i've yet to receive an
answer
granted it's a difficult subject and
they're currently really busy because
they had a huge influx of new
members but i've invested money so i
want answers
so i've decided to research it a bit
myself i started with the united states
in the united states you have the sec
the sec
is a security and exchange commission
they're in charge of regulating
financial markets in the us and have
jurisdiction over new icos so
what do they do they protect consumers
the sec sorts icos in two categories a
security and
not a security if your ico is
categorized as security it gets
subjected to audits it falls under
anti-laundering laws
kyc rules etc so as you could guess most
icos don't want to get categorized as a
security
to reduce regulatory issues most icos
try to circumvent this by emphasizing
the utility of a coin as a form of
currency on a new
software platform this way they can give
it a clear
value but it isn't foolproof that's why
the sec
uses the howie test the howie test gives
a clear outline on what constitutes a
security
so they say a transaction is an
investment contract if
money is invested in a common enterprise
or company the investor expects
profits from the investment and the
profit comes from the efforts of someone
other than the investor
the second one is the most important one
and because of this a lot of icos get
classified as a security
seeing that the regulations are so
strict if you get classified as security
you want to circumvent this
how did crypto.com do this so again
throughout the years crypto.com made
people buy and hold mco with incentives
they
cancelled they started with the asset
contract and after that they did the
airdrops
both were suddenly cancelled but a lot
of people hold and staked a lot of mco
because of it crypto.com
claims they can't get their ico mco
regulated so they created a new coin
cro this new coin cro was announced in
november 2018
but at the same time their ceo said at
no point will there ever be a swap from
mco to
cro then almost two years later during
the
major bull run of cryptocurrency at an
almost all-time high of
cro and at a point that mco was at a
relatively
low price crypto.com decided to swap
mco to cro because of the price
difference it was
at a relatively low ratio mco was only
worth
33 cro and now they have a coin that
will most likely get
regulated and to some it might seem like
they didn't have a choice
this was the route the company had to
make because of regulations
either way i see two ways you can look
at this
the first one being that you think that
they planned all of this they use their
early investors to pump the value of
mco and in a way you say that they use
their early investors
all the people that bought so much mco
to build the future of the company
or you think that they didn't do it
intentionally they had no idea of the
regulations regarding
icos or they didn't investigate this
thoroughly enough
and you see no issue and you still want
to continue with them
so what's my stance on all of this well
i joined crypto.com about
two months ago let's say mid-june a
couple of my friends were using it and
they were really enthusiastic about the
company and i have to admit i didn't
really investigate it and i decided to
join in
i almost immediately invested 5 000 us
dollars
and from this 5 000 i used almost half
to buy
cro and with the rest i bought ethereum
and bitcoin
and also a little bit of mco fast
forward two months later
my initial investment of 5 000 us
dollars
increased in value to 7000 us dollars
so in less than two months i was able to
make a profit of two thousand
us dollars this is an increase of forty
percent of my initial investment
from this two thousand dollars profit
almost two hundred dollars game from
crypto.com
it came from the exchange staking the
crypto earn program
and the syndicate events and the rest
around 1
800 us dollars came from the capital
gain of the cryptocurrency bull run
so why am i telling you this well to me
it's really important that you know that
i'm not
an early investor and that i made a lot
of profit
and with this i hope i can illustrate
that i'm trying to be as objective as
possible
and i'm gonna be really honest on the
day they announced the swap i decided to
withdraw
all my funds from the crypto.com
platform from the 7000 us dollars i was
able to instantly withdraw
four thousand us dollars the remaining
three thousand dollars is still stuck on
the
crypto.com platform because it's state
but once the staking terms are over i'm
gonna immediately withdraw these funds
too i hope you understand that i'm not
trying to convince anybody to do the
same
but with all the information i just
supplied to me it was the right choice
to withdraw
there's always some sort of nuance or a
side of the story you don't see
but the actions and the decisions
crypto.com made made me in a way
lose trust in the company i feel that
they always came with such nice
incentives to invest in on their
platform but after they had enough
people that actually did it they decided
to cancel it
time and time again and i realized that
legal issues are really difficult
and but a company that's doing so well
and that's grown
so much throughout the years surely they
must have some sort of road map and they
must have been aware of the rules and
regulations concerning icos so
so canceling all of this and doing the
swap and blaming it on
regulations just isn't enough to
convince me to stay on your platform
and again i'm not trying to convince
anybody to do the same
but i really think that this is
information that everybody that's
currently
in crypto.com or is thinking about
investing in them
should know so i want to end by saying
that if you have any questions or if
anything was unclear just please
leave a comment i also have a discord
server i'll link it in the description
here we can continue this discussion or
talk about investing in general
if you enjoyed the video please leave a
like and subscribe
and i want to thank you for watching and
i hope to see you guys in the next
video bye
you
