today crypto.com introduced the mco swap
program
and what does this swap mean? crypto.com
is no longer going to use
mco so they're making it possible for us
to swap all our mco to
cro all your current functionality and
benefits would remain the same but
instead of there being mco staked it
will be
CRO and i can understand why if you
ask me it's pretty logical
instead of focusing on two coins they
can give their full attention to one
coin
plus it will be easier for them to
streamline all their operations
on top of all of this if you do the swap
before the 2nd of September you get a 20% early swap bonus all of this sounds like
a very good deal
so what's the problem well i see four
major issues
the first one of my issues is the market
cap currently
cro has 40 times the market cap of mco
it's around 3 billion for cro vs 80
million for
mco there's a total supply of around 31
million
mco imagine that you own one percent of
this total supply
so one percent of 31 million would be
310 thousand
so when they do this swap the
current rate is around 33 to 1
so one mco would give you 33 cro
so if you take that 310 000 mco you do
the swap
then you would have around 10 million
cro the total supply of cro is
100 billion so if you own 10 million
cro you only own 0.001
of the total amount of cro this means
your initial investment is heavily
diluted
the next issue that i have is the mco
price
how much promotion did you see the last
couple of months for mco
that's right zero if you navigate to the
official twitter of the crypto.com
platform
you don't even see a mention of mco at
all so in the last couple of months
crypto.com hasn't done any marketing for
the mco coin
instead of this all the attention went
to cro but one thing is strange
even though crypto.com had a huge influx
of new members
and a lot of these members stake mco
because they want a credit card with
cashback possibilities
the price of mco kept on going down to
understand this
you need to know that most of the mco
supply is in the hands of crypto.com
which of course is logical
so if you stake mco you get interests so
every week
crypto.com has to take mcl out of their
wallet and pay out the interest of all
the users with it
once crypto.com supply of mco would have
ran out
it would have meant that he would have
to buy mco back
from the market this would make the mco
price go to the moon
because suddenly there would be a huge
demand of mco
so it kind of feels like crypto.com
deliberately stopped promoting
mco and kept on selling from their own
supplies to keep the mco
price low normally this wouldn't have
been that much of an issue because
there would have been a moment when they
had to buy back from the market the
price would have gone up and everybody
would have been
happy but because of the swap this
moment will never happen
and this is where my next point comes in
so the current swap rate is
33 to 1. if you have one mco you would
receive
33 cro for it if we would go back 3
months in time
to the 1st of may we would see that the
price of 1 cro would be
7 cents and the price of 1 mco would be
11.27
this results in a conversion rate of one
mcl being worth
161 cro if we would have done the swap
then we would have received
so much more cro and this builds on the
previous point that i made the one where
i said that i kind of feel like they
intentionally kept the mco price low
what's also important to note is that
cro has been climbing like crazy last
couple of months
the price was around 3 cents in january
and this climb is really good but there
hasn't been a correction yet
so the issue here is that we're in a way
forced to do the swap
to a coin that's probably going to
receive a correction soon which of
course is bad news
another important thing to know is that
crypto.com owns
81.5 billion of the 100 billion
cro supply currently the swap ratio is
33 to 1.
if they would have given us a better
ratio let's multiply it by three
let's say that one mco would be traded
to 100 cro
currently the swap will result in
crypto.com having to give
300 million cro to all the users if we
multiply this by 3 they would have to
give
900 million serial to all the users i
feel like on a total supply of 81.5
billion cro they wouldn't even feel this
900 million
and i also feel that marketing wise this
would have been so much better
because i kind of feel like this is
going to turn into a pr nightmare for
krypto.com
and if you think about these conversion
rates this 20 bonus is just a slap in
the face
not only is the amount ridiculously low
also this bonus will be immediately
staked for
6 months so you can't even use it for 6
months
and this brings me to my last point the
cards
if we take one of the cheapest cards the
ruby card to receive this card you would
have to stake 50 mco
then you would receive the card and it
had a cashback of 3
if you already have this card and the
swap happens this 50 mco will be
converted to
cro and you keep the card and you keep
all your benefits so
no problem but after the swap if you're
a new user and you want to request the
credit card
you will have to stake a lot more so
before the swap to get a ruby card you
would have to stake 50 mco
which at this moment in time is around
275
dollars if you want to get the card
after the swap you would have to stake
5000 cro which is approximately at this
moment in time
850 dollars so they made it three times
more expensive to get a credit card
i don't know it kind of feels like an
easy way
to make sure people don't withdraw all
their stakings
because imagine that for some reason
let's say you need a little bit of money
then you could say
you know what i'll quit staking for a
while i want to withdraw those funds use
the money once i got the money back
i'll stake again and get the credit card
again but now instead of 275 dollars you
would need to stake three times that
amount
so i know this is gonna be kind of a
hurdle for a lot of people to withdraw
their staking
or it might even have the opposite
effect that people are going to get fed
up by this
because in a way it's kind of unfair so
that's in a nutshell why i dislike this
new mc0
swap i also want to end with a little
tweet that i just found
isn't that a little bit funny i don't
know i feel like the video in this tweet
really confirms everything i just said
but hey it's just
my opinion you know anyway what am i
going to do now
well i'm going to be honest i made quite
some nice profits with the crypto.com
platform but i feel like with
the moves they made they they kind of
lost my trust
and i don't feel like it's a good choice
to invest in a company that you don't
trust so i'm not saying i'm going to
pull out all my funds out of the
crypto.com platform
because also i simply can't because a
lot of it is staked
but if you want to see where i go from
here please subscribe
for me the goal of this channel is to
explore possibilities in the
cryptocurrency world and the investing
world
i still have a lot to learn and as a
viewer you can learn together with
me that being said i hope you enjoyed
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anyway thanks for watching and goodbye
you
