Currently I'm waiting on a crypto.com cashback card, I figured that for all the general outgoings and a few big things (car servicing etc.) I may as well get 2% of the payment back in crypo, so it was a no brainer. As with most folks on this program I've been checking each day hoping to see that status swap over to shipped. However, this morning imagine my surprise when I see there is an app update (okay, nothing special there). Upon updating I'm immediately faced with an MCO-CRO swap functionality....huh this looks a little odd, but alright I'll bite...what is it all about?
So it turns out that Crypto.com have not only added the swap functionally but have actively added an incentive (20% bonus) for folk who switch over in the next 30 day, final deadline is 2 November. As a result it looks like MCO value has spiked because it is effectively a good deal to buy some MCO and then get a great rate on the CRO swap.
So how does it work?
- The swap program is running from 03 August to 02 November
- Crypto.com are offering a flat 27.6439 CRO for each MCO swapped
- There is an additional 20% bonus for swapping during the first 30 days
- You can select both your wallet balances, crypto earn, MCO collateral and already locked in staking items
- You do not lose your staking benefits (e.g. the cards)
- By swapping the staking over you get upgraded to the CRO rates 16-18%
- Users will need to make sure they transfer funds out of the exchange to get access to swapping those MCO
Full detail of the guide can be found here:
Let look at the app info here:
Now I maybe not be the best trader in the box but the numbers don't quite add up, which is why I think we're seeing this (as of writing) >45% rally in MCO. Right so I check what the MCO-CRO swap rate would be earlier on ChangeNOW and it looked to me to be 1 MCO to around 18-22 CRO. So if that is the case, this seems (on the surface) like a no brainer if you want to make some CRO quickly. That said with the MCO price spiking and still going up it looks to me that those who were interested in this little scheme are already capitalizing on it and it is getting to the stage where you end up shelling out more for MCO than you get back in CRO. [Edit: to avoid confusion, the scheme to which I am referring here is to buy MCO as a cheap way of getting lots of CRO, buying MCO yesterday would have been a much better deal....hindsight is always 20:20]
Some back of the napkin maths:
- Buy 100 MCO at lest say $5.80 = $580 (while writing this it zipped up another 10c)
- Swap and get 2,764.39 CRO
- Add the 20% bonus we get 3,317.268 CRO
- CRO = $561.89 (so looks like a loss already)
Funnily enough with MCO at the value it is spiking to now it is better to just sell the MCO and buy CRO since even with the 20% bonus you're not likely like to get more CRO for your money (that said I'm basing this statement on a no-fees scenario so perhaps they just break even). Though the MCO price is starting to come down now so the swap could look better.
Regarding why Crypto.com are doing this I'm not 100% sure. There has been some serious efforts gone into the CRO token over the past year, so much so that it has been steamrollering other tokens and muscled its way easily into the top 20 and is knocking on the door of the top 10. I get the impression that the latest drive is specifically aimed at putting a nail in the coffin of MCO and getting everyone moved over to the CRO token, or at least attempting to. Question for me is what happens to MCO when folks all jump ship? does it crash and burn? they are not forcing a switch so it looks like MCO may not be going anywhere. If you have any insight on this please share, alternatively conspiracy theories or blind speculation are also welcome.
The following statements have been released by Crypto.com
The Crypto.com ecosystem will use one streamlined token (CRO) with the combined functionality, rather than two separate tokens (CRO and MCO).
All functions currently attributed to MCO will still exist and will be preserved, but will be enhanced and represented by CRO.
MCO that is not swapped will still exist and circulate on the Ethereum blockchain as ERC-20 tokens, but Crypto.com will no longer support these tokens and no Crypto.com service or product will require or permit usage of these tokens.
This information effectively makes the swap mandatory.
Thanks for reading, happy swapping y'all!