Nobody cared in the bull market, This is what cryptodotcom once did to early investors

Sorry for the wall of text, go down for the TLDR.

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They had an ICO for a cryptocurrency payments card. 15.7 million MCO coins were sold to public (50%) and they kept the other 50%.

You could get a visa card with benefits if you locked up 0, 50, 500, 5000 or 50000 MCO on the app.

After a while they printed 100 billion of a new coin called CRO it would be used for a whole payment network. MCO holders on the app would get airdropped 5 cro for every mco that they hold each month for 60 months.

After 7 months the airdrops stopped. Cards started shipping in the USA and the airdrops had to stop because of regulatory issues. Maximum 549.500.000 (550 Million) Got airdropped.

Months passed, cards started to ship in Europe and investors thought that this would be the moment for MCO to finally increase in price. But honestly most of the teams attention went to CRO and the new exchange with CRO-trading pairs.

MCO holders were getting worried and during an AMA with the CEO of crypto.com Kris M. they asked if there was going to be a tokenswap for MCO with CRO. And he said there will NEVER be a token swap. So good news.

Months went by, MCO started disappearing from the major exchanges (getting locked up 6 months for the card). Price also started to go slightly upwards. There was only a 15.7 million supply so after a while, the price would go up (high demand low supply - > basic economics).

But after a while the price of MCO was starting to go down. MCO was flowing back on the exchanges. These were some weird events according to some early investors. They started asking question. Is cdc (short for cryptodotcom) running on a fractional reserve? But they never got an answer.

Then it happened. A maintenance for the app and exchange was announced on the 3rd of August 2020. Nothing special, these things have to be done now and then. But a lot of early investors woke up and couldn't believe their eyes. A token swap was almost forced upon them. The MCO token would become useless and you would need CRO to stake for the card. But the only problem was the terrible conversion rate. 1 MCO for 27 CRO. And a 20% bonus locked on the exchange for 6 months if you swapped before September (what now they can give free CRO after all??? No more regulatory issues? ). So in the end 1 MCO got you 33 CRO.

So what is so bad about this, and I've noticed that this is really hard to understand for some people is this. If you had a market share of 1% in MCO then you now had 1/6000 of a market share in CRO. Imagine holding 1 bitcoin, and one day you wake up and the total supply of bitcoin is 126 Billion.

How did they justify this? They based it on a dollar value of the coins of the last couple of days. Yes the last days when they let MCO die in a ditch and promoted the "sj*t" out of CRO. A couple of months ago MCO/CRO would be 100. So yes this was the perfect timing for them.

I don't know for sure for how long this was the plan. Did they pumped up the price of CRO and sold locked MCO cheap? There is no proof of that but it all smells fishy.

The next day 4th of August there was once again a AMA with Kris M. The CEO.

(something I forgot to mention, the CRO lockup for the same card did a x100. Weird right? When user only got an x32. 500 mco card became a 50000 CRO card. If you had the card already you'd be grandfathered in)

Alot of people complained but Kris said that they couldn't give out higher rates like x100 because it would cost them too much money. Yes you read that correctly they couldn't give early investors a higher rate of their 100 billion printed CRO. That would literally cost them nothing. It's only a lost future profit. Small price to pay to keep the early investors happy who made it possible for CRO to be created.

So what did they do, they lowered the stake for the cards with /5. 50000 CRO became 10000 etc. Pretty smart move to keep the attention away of the x32 swap rate. There's a big chance that this was the plan al along. But this is just speculation.

And now in 2022: The card is pegged to a dollar value of CRO. SO if CRO is $1 then you need 400 CRO for the 400 dollar card. And at this time they also burned give or take 65 billion CRO. So at this time early MCO investors had 1/2000 of the market share after the swap and the burn. So in my example, the total supply of bitcoin would be 42 billion.

So if everybody did the swap, and let's say all MCO tokens were swapped: 15.700.000 MCO * 32 = 502.400.000 (503 million) + the airdropped tokens (550 million) = 1053 million. So that leaves cryptodotcom with almost 34 Billions of CRO tokens. That they dumped on the market (you can find this on the chain explorer CRO ERC20 token), used as cashback for the visa card, used for rewards for inviting new members to the app, etc. If you look at the price of CRO in the last 2 years, then you understand why they had the money for all those sponsorships.

So with all these shenanigans going on the last week. Decide for yourself if it is safe to keep your funds on the app or exchange.

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TLDR: CDC had an ICO (MCO coin), swapped the MCO coin (16 million supply) for a newly printed one with a huge supply (35 billion) CRO coin and gave early investors peanuts 1/2000 of previous market share. The other 34 billion CRO made them lots of money.

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I still use the app and the visa card for daily purchases and that works great. I also made money with CRO, but currently i don't hold any, so this isn't a sore loser post. Anyway, thx for reading and have a great day.