- Crypto.com has announced it’s launching a token swap program.
- Token utility from MCO and CRO will be merged into one token.
- MCO holders have until November 2 to make the swap or lose MCO utility.
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Crypto.com announced the launch of a token swap program to merge the functionality and utility associated with the original MCO token with the CRO token. The MCO token has mooned 37% on the news.
How to Swap MCO Tokens
Starting from today, users will be given the option to swap their MCO tokens for CRO within the app interface.
Users only have until Nov. 2 to complete the swap, after which time the MCO token will essentially become deprecated as far as the company is concerned. Unswapped MCO will still exist on Ethereum but won’t be supported by Crypto.com, or have any utility on any part of the platform.
Users who complete the swap before Sept. 2 will receive a 20% Early Swap Bonus paid in CRO tokens via the Crypto.com exchange, and staked for six months.
If you have already staked MCO tokens in recent months, as part of an MCO Visa Card application or otherwise, then your staked MCO will be converted into CRO, and your remaining staking period will remain intact.
You can only complete the swap within the Crypto.com app. If you’re holding MCO tokens on an external exchange or even on the Crypto.com exchange, then you’ll need to transfer them into the Crypto.com app to make the swap.
Upside Potential or Downside Risk?
Whether or not you stand to gain from the MCO token swap depends on various factors.
These include the price at which you bought your MCO, the value of your current staking benefits, your native fiat currency in the app, and the value of MCO on the date you make the swap.
Crypto.com is using a volume-weighted average price expressed in US dollars to calculate the MCO conversion. This is determined based on the month leading up to Aug. 2, 2020, and fixed at 27.6439 CRO for one MCO.
With the 20% Early Swap Bonus, the rate increases to 33.17236 CRO.
However, the sudden hike in price over the last 24 hours negates some of the value of the Early Swap Bonus, assuming the value of CRO stays relatively stable.
The MCO price tumbled against the dollar in June after news of the Wirecard scandal broke, given Wirecard is the company issuing the MCO Visa card. MCO had struggled to recover in price until news of the swap emerged, after which it jumped by more than a third of its value.
Furthermore, the value of the US dollar has been plummeting over the last month due to the coronavirus crisis, down 4% against the euro at $0.85.
In this scenario, users will see any gains from the 20% bonus diminish as the price of MCO increases against CRO. Euro users could see this further reduced if the value of the dollar against the euro continues to decline, given the conversion is calculated in dollars.
Conversely, if the MCO price corrects relative to the CRO price, then users could stand to gain. European users will gain further on the token swap if the dollar continues in the tentative recovery seen over the last few days.
Finally, it’s worth considering that the staking benefits from CRO are considerably higher than those of MCO, topping out at 20% depending on the staking period, which could help to enhance any gains.
Disclosure: This article was independently selected by our editorial team for coverage. Crypto.com is a sponsor of Crypto Briefing. The author of this review holds MCO tokens.