Crypto.com, the leading cryptocurrency platform announced an MCO token Swap program which will render its first native token completely replaced by the CRO coin. According to the official announcement, the users can swap their MCO tokens between 3rd August 2020 and 2nd November 2020 on Crypto.com App.
The MCO to CRO a mandatory swap and if the Crypto.com users miss the swap within the stipulated time their MCO will lose its functionality. The swap must be done manually on their mobile app.
On the other hand CRO, the second native token of Crypto.com is the standardized medium used for exchange. The users can stake CRO to earn when different governance actions being performed on the platform. It will also be the governance token for the Crypto.com Chain.
But with MCO swap, the MCO token will essentially be replaced by CRO. According to the official announcement, the platform will be using only one streamlined token CRO from November 2, 2020 and the CRO token will hold the combined functionality of both CRO and MCO.
What happens to MCO?
The official blog states that MCO swap will not lead to any change to MCO’s core functionality. In fact, this will just change the way MCO is being represented and will have additional functionalities.
If a user misses swapping the MCO tokens before Nov 2, these will exist as ERC-20 tokens but Crypto.com will not support them. As a matter of fact, they will be of no use on any Crypto.com product or service.
The 31,5 Million Supply vs the 100,000 Million Supply Question
One fair point that the MCO holders raise is that though the swap might give them a greater value on the change, they then hold a significantly less supply of the total supply of the swapped coin. The finite nature of cryptocurrencies gives early movers an opportunity to invest in a fixed supply which changes significantly for a holder of MCO once the swap takes place.
I reached out to the Altcoin Buzz CEO, Shashwat, who is a high-tier MCO Card holder, to get his opinion in it, he responded “While this is the case, my take on it is that the value of MCO regardless of supply was based on what functionality is provided to it by Crypto.com and seeing the price has very little effect and is constantly declining for quite a while and there did not seem many plans by the company to increase further utility for the MCO token except for getting the MCO cards of various tiers and staking it to earn some rewards it seems like the right decision for the longer term. The holders of MCO post swap will be a part of a greater ecosystem with multiple functionalities of the swapped coin [CRO] and also might allow crypto.com to focus on the one coin only and I think have given the best solution out to existing MCO holders.”
All in all, it seems to be a great long term move. According to Altcoin Buzz CEO and Co-founder, it is always easier to build value in a single coin.
A win-win situation?
The MCO swap program announcement led to rage in the Crypto.com community. Users are complaining about the app running slow, chances of losing current card status, and several other issues. It seems the Crypto.com community is getting anxious about losing their existing MCO staking benefits. But that’s not the case.
Two very important points that need to be noted are:
Once you swap the MCO for CRO, you earn a bonus on the Crypto.com exchange and App. On the exchange, you receive 20% APR on CRO while on App you receive 18% APR on staked CRO.
Users who perform the MCO/CRO swap prior to 2 Sep 2020 will receive this early swap bonus. This will be equivalent to “20% of the amount swapped at the MCO to CRO Swap Rate.” This bonus amount will be distributed on Crypto.com Exchange. Furthermore, it will be staked for 6 months.
Where have you held the MCO?
According to the official FAQ’s, the MCO Swap program covers MCO held in following products
MCO Visa Card MCO staking
The MCO Swap will implement following CRO staking scheme
Importantly, the MCO swap process is non-reversible. Also, if a user’s MCO swap attracts any transaction fees on the Ethereum network, he is responsible for paying the same.
MCO support during the MCO Swap Program
The MCO Swap program will be active from 3 Aug 2020 at 6:00 UTC to 2 Nov 2020 at 23:59 UTC. During this period, MCO owners can enjoy following utility and functionality:
Your MCO stake will enjoy all the existing benefits during the above duration.
You can continue sending MCO to other Crypto.com App users.
MCO withdrawals and deposits to/from both Crypto.com Exchange addresses and external addresses will be supported.
If you do not swap your MCO stake before 2 November, you will continue to receive the rewards in MCO.
The Crypto.com App sign-up bonuses will all be paid in CRO.
It is advised that you stay alert and do not fall victim to any scams by Crypto.com impostors. The MCO Swap Program can be executed only via the Crypto.com App.