After Crypto.com announced the merge of their MCO token and CRO tokens, MCO had a massive 45% rally while CRO price stayed mostly the same.
MCO holders will have until November 2 to make the swap for CRO tokens. The unswapped coins will not be destroyed but won’t be supported by Cypto.com anymore. Additionally, anyone who swaps their coins before September 2 will receive a 20% swap bonus in CRO tokens, however, the massive rally and the weakness of the dollar are basically negating this bonus.
Furthermore, many users and threads have started surfacing the Internet calling Crypto.com a scam and a fraud.
What is Going on With Crypto.com?
A thread on subreddit r/CryptoCurrencyCards appeared a day ago stating that if you were defrauded by Crypto.com, you could contact the SEC or the FCA.
A lot of people were confused in the comments asking what exactly happened. Investors feel defrauded because of the ICO held by Crypto.com.
The MCO ICO happened in June 2017 and Crypto.com managed to raise $26.7 million. The initial MCO price was $2.8 and it’s now trading at $5.17 after the last price boost.
CRO, on the other hand, was created later, also as an ERC-20 token and it’s intended as a means of payment and settlement of Crypto.com native blockchain. CRO price is currently $0.15 but its market cap is close to $3 billion. MCO’s market cap is only $81 million.
Reddit users are also accusing Crypto.com of interfering during the ICO sale committing inside trading.
This hasn’t been proven and it’s unlikely to ever be proven, however, users are clearly angry at crypto.com for various reasons.
Cryptovantage published a report on the swap using ‘Opinion: Is the Outrage Behind MCO’s Swap Justified?’ as the title. It seems that before the swap, Crypto.com gave no indication whatsoever that there would be a swap or anything similar.
The biggest problem with the swap is that anyone that bought MCO at a price higher than $5 approximately will suffer a significant loss. MCO price has been far higher than $5, in fact, its peak was almost $20 back in 2017 right after the ICO ended.
CRO price has been climbing in a robust uptrend for the past three months and the digital asset is up by more than 600% since March.
MCO price, on the other hand, has been trading sideways throughout 2020 before the massive spike that we have just seen. Issues with the MCO token were raised even years ago. Another Reddit thread was asking what would happen with MCO if everyone uses CRO.
I am very concerned about my MCO invest.
The main purpose of MCO for my understanding was to build the company crypto.com.
The same company then created a 2nd coin, the CRO, to pay directly with the phone. (I never understood why an additional coin was necessary, and not just use MCO, anyway).
Said the user. A year later, it seems that his concerns were definitely not unfounded. Another more recent post was again raising awareness about a possible MCO price manipulation.
Again, no one truly knows what happened and if Crypto.com actually had some involvement in any alleged manipulations, however, the sudden token swap is still a strange event.