MCO Rate Jumps 50% Despite Negative Impact of Token Swap Program
Crypto startup Crypto.com, which maintains crypto payment cards, announced this Monday a program to swap its MCO tokens for new CRO tokens. The event is held in anticipation of the launch of the main project network.
Against the background of today’s announcement, the MCO rate is up 50% from $ 4 to $ 6.
The market’s positive reaction is understandable. The token swap will be carried out with a 20% bonus at the rate of 1 MCO = 33.1726 CRO. Traders immediately took advantage of the arbitrage opportunity and raised the MCO rate even above the promised bonus. Token swap is carried out through Crypto.com’s own application until November 2.
According to Crypto.com, the program will combine the functionality of the MCO with the practical value and manufacturability of CRO, making the latest token a common accounting unit in the Crypto.com Chain ecosystem..
While the announcement appears positive on the surface, its details mean that users of Crypto.com products should prepare for adverse consequences. The fact is that together with the swap, the principle of calculating statuses assigned to MCO Visa cardholders is changing..
Previously, to obtain the minimum ruby status, it was required to have 50 MCO in the staking wallet, now this requires 5,000 CRO. Even with today’s rate rise, the cost of a first-level membership is rising from $ 277 to $ 850. Similarly, for the rest of the levels, it will change by about 4 times.
Moreover, even with the 20% bonus, MCO investors will receive a significantly lower share of total assets when converted to CROs. According to CoinGecko, the current MCO turnover is 15 793 829, while CRO is 18 575 799 086. The difference is more than a thousand times, while the project offers an exchange at a rate of 1: 33.1726.
Users who have already received the appropriate status by entering the MCO staking will retain it, but the company does not specify whether this will continue forever or whether at a certain stage they will have to re-confirm it.