Just my thoughts on the MCO -> CRO swap(self.Crypto_com)
submitted 1 months ago by
seraksab to
/r/Crypto_com
This is just a summary on my personal thoughts on the MCO -> CRO swap and why I think that this move is completely to the detriment of existing users and hodlers.
So what they are communicating is, that you have to swap your tokens but:
- You get a nice 20% bonus from swapping
- You can keep your card and all its benefits
- You now get 16% p.a. on your card stake (for the 500MCO tier)
At first glance that all sounds pretty good and fair for existing holders and card users.
So everythings all good, right?
But if you take a closer look, this is what they actually did:
- For the past months they have been promoting CRO non stop
- No mention of MCO or marketing from their side at all (they even removed it from their twitter bio)
- They used their remaining MCO stack that was not part of the locked 16kk MCO to pay out cashback, new card stakes etc. (verifiable via etherscan)
see:
- They removed reddit posts mentioning their behaviour mentioned in the previuos point
So as far as price is concerned the ***owing happend in the past 3 months:
- CRO went up over 3x to 0.16$
- MCO went down to 4$ and magically floated right around that mark for over 1 month
Now they decide that it's time to swap tokens. And as a reference price for the swap they take the volume weighted average price of the last 1 month
The very ratio they have spent the last months to bend towards their benefit by promoting CRO and completely neglecting MCO.
In my personal case this means:
For my stake of 500MCO I will receive ~16.500 CRO, which sounds fair if calculated in $ value.
BUT:
- my overall share in their token went down drastically: 32kk total supply of MCO (half of which was locked and supposed to be never released) vs 100kkk of CRO supply
- I got swapped in a token that just went up like crazy for the last months and no major correction happened yet. so my risk of the $ value going down went up significantly
- I can't unstake and sell those CRO before the correction because the required card stake went up 3x and in order stake again after unstaking i would have to stake 50k CRO. but i only got 16.5k through swapping
- Had they done the very same swap 2 or 3 months ago they would have to give out about double or even triple the CRO
So i now own 2000$ of a 3 billion $ market cap coin with a crazy total supply of 100kkk of which only around 18% are released (the rest still belongs to cdc) and that also just recently pumped like crazy.
Risk of a correction is substantial and my share in the total supply completely neglectible
What i had before was 2000$ worth of token with an effictive supply of only 16kk and only a market cap of 80 million $ (thats 1/40 of that of CRO!!)
Given the required staking amounts for the card and their benefits the chance of it correcting further down substantially was very slim (imho) but there was a lot of upside potential, giving the limited supply (and comparing the low market cap vs. CRO)
​
So whats left for me:
CDC tried their best to perform this swap as cheap as possible and to the upmost benefit for them
There's absolutely no gain whatsoever in all of this for existing holders. And also nothing we can do about it as MCO will be worth nothing after the swap period is over...
Curious to see if any of this will even be addressed in the AMA or my post will just be deleted