 | If you're new or old to crypto you probably know about Crypto.com sometimes called CDC as they take a shotgun approach to advertising spending tons of money to onboard new and naïve users, offering a gamified trading App with insane spread for a full trade and then they say they have "no or low fees". Despite claiming they have no or low fees, CDC takes 15% of your money on every full trade you make on the APP, I'm not joking the spread is so big you lose 15% of your funds on every full trade (buy and sell) you make on the app, this is a long time known issue with CDC. CDC apologists have tried to claim, "well they need to make money, stop complaining" which might be understandable but taken into context of how much they spend on advertising they could also cut their advertising budget, take less in fees, and have more money. The current CDC game plan doesn't create long term users:
CDC has an endless loop of attracting new users that they rip off before they realize they're being ripped off and go to another exchange with much lower fees and better support. But apparently despite making so much money off new users it either isn't sustainable or they aren't a well ran business because they now need to remint 70% of the previously burned CRO supply to "invest in the future"... The CRO Max supply currently sits at 30B, so this would be an increase of 233% making the new max supply 100B, given directly to CDC which they would then use to dump on existing CRO holders. Now you might think that this won't pass but it currently looks like it will, unless CDC decides to back down and vote no. CDC holds enough voting power to push this over quorum. https://www.mintscan.io/crypto-org/proposals/29 What does this mean for CDC?Although this doesn't mean that the CDC business is in bad shape it does at least raise suspicions to the health of the company as it feels reminiscent to FTX using FTT as a money printer. So at the absolute worst CDC is in very bad health, although possible this isn't likely at least not from this proposal alone. ------- What does this mean for CRO?If you are a CRO holder or a CRO staker you need to get rid of the token ASAP especially if this passes. The value of your CRO tokens are about to be diluted massively The CRO marketcap is at $1.9B, and this proposal adds another $5.3B in tokens to that Market Cap. The absolute best case scenario is that this proposal artificially inflates the marketcap of CRO and CDC just holds the token without doing anything with them. However given CDCs tendency to blow money which was discussed above they're likely going to dump these tokens on existing CRO holders devaluing CRO for those holders. If you are a CRO holder the value of your CRO is likely to crash if this passes. If you are CRO staker the tokens are likely to be devalued so much that you actually lose USD on the value of your tokens, with the rewards from the CDC cards not even being enough to offset the USD value you lose while your tokens are locked. Seriously if you are a CRO holder or staker you need to be prepared to abandon ship if this passes. CDC is set to devalue their native token costing all CRO holders a lot of money. [link] [comments] |
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