I made some experiments in the last 8 months to see the risk/reward reports of what you can get vs what you can lose when you access some astonishing offers - like 50% off for BTC, LINK, DOT, even DAI - a stable coin, where you can say: "Hey! what can I lose? Is a stable coin!"
A rising star was appearing in the last year and the name of it: Crypto.com.
Coming from nowhere, it started to grow step by step by their nice opportunities for staking and buying crypto with 50% off price through their feature named: "The Syndicate"
Of course, there were(or not) questions from the veterans who saw some scams before: "How could they do that?"
The good part is the answer is logical and simple: "They have 100 billion CRO tokens supply". Every time when they want to make a 50% discount for a coin listed on their platform - they sell an amount of that supply. If the coin is new and the team of that project is willing to be listed on crypto.com, it will provide a quantity from the tokens to be sold at that discount.
For not creating a big dump they took some measures:
- 18-20% staking reward for CRO,
- buy the new coins only with CRO tokens
- big rewards for staking it to get their cash-back cards (Netflix & Spotify subscriptions paid in CRO tokens, 2-8% cashback, even Airport Lounge entries and more other features).
If you want to see more opinions about crypto cards, you could chech this video with 4 of the most interesting cards in crypto world (I will add SWIPE and/or Binance Card and maybe EIDOO).
But we are not here to discuss the advantages of using a crypto.com card, but for the benefit (or not) of entering in 50% discount for buying crypto coins from the crypto.com platform.
The subject is: does it worth to subscribe at crypto.com Syndicate?
I will give you some more details to judge yourself, also.
The process:
- first - you need to stake at least 10.000 CRO on their platform. If you have more than 50.000 you will be entitled to subscribe for more coins
- second - you have to trade on crypto.com Exchange at least 5000 $ crypto/month
- third - you need to have more CRO for subscribing it to that Syndicate offer - if you have only 10 k CRO subscribed you can use 1 k $ in CRO for subscription
- fourth - when the time for subscribing is finished, your CRO subscribed is divided to the total amount of CRO pledged. If you had 1 k CRO and the total amount pledged was 100 k, you will receive 1/100 from the total coins allocated. well, the theory is nice, the reality is showing us how many competitors we have :)
- fifth - in 2-3 days, everything is calculated and you will receive an email where you are asked if you agree to receive that amount. You have the option to abort and all your CRO will turn to you
Why should I go for this 50% discount?
- obviously - because is a 50% discount for getting a coin - it's cool, isn't it !?
- if I already have some extra CRO, why shouldn't took some cheaper coins?
- maybe the price of what I will buy will grow even more and the CRO will go down
Why shouldn't I do this?
- because the time interval between subscribing and receiving the new coins is several days and a lot could happen
- if CRO has increased in value before subscription, it may decrease in the next days after it, so it will be possible to make a bad deal
- if the new coin is grown before subscription, I could be trapped in a dump (the stable coin is excepted by this, but we could also bite the dust because of the previous reason)
- the percentage of the CRO amount changed into the new coin is so low that maybe only for small (very small) investors could count any penny gain: 2% from the amount subscribed. as you can see in the picture below.
So, at that time, my 990 CRO was worthing almost 155 $. This is the entry.
I received 4.59 DAI, so I made a profit of 2.3 $.
How is the reward vs investment? 2.3 $ /155 $ = 1.48%.
And this is when CRO is maintaining the price. If it falls (and this happened because now the CRO is worthing 0.061 $ instead of 0.157 $), then ... bad luck.
Conclusions:
I will not make such deals only if the market is stable or growing and even then, only with a small amount. Just to see the taste of a game.
