Crypto.com unveiled its MCO swap program on August 3, allowing existing holders to shift their tokens to CRO as the protocol shifts to a unified, singular token system for its mainnet.
The program runs until November 2, 2020. Crypto.com will not support MCO functionality on its application post the data. But the tokens will, by themselves, remain “live” on the Ethereum blockchain.
Announcing MCO Swap Program:
– MCO & CRO utility combined ahead of the Mainnet launch
– Swap available only in the https://t.co/vCNztABJoG App
– 20% bonus for swaps completed by 2 Sep 2020
– Swap rate: 1 MCO = 33.1726 CRO (including 20% bonus)
— Crypto.com (@cryptocom) August 3, 2020
A “streamlined” Crypto.com ecosystem
There will be no change to the core functionality of the Crypto.com App. Specifically, the swap program will involve combining the current functionalities of MCO, with CRO’s utility and technology, in a “one-stop-shop” token to enable a “streamlined” Crypto.com ecosystem, said the blog.
The blog added three important points for holders to consider once the swap process is complete:
- 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.
For the swap, Crypto.com will use a volume-weighted average(VWAP) price as expressed in to determine the number of CRO allocated to you that reflects each swapped MCO:
Using the above formula, each MCO can be redeemed for 27.6439 CRO. The latter can be increased to over 33 CRO upon eligibility for the 20% swap bonus.
The blog said the MCO Swap program is not available on the Exchange. All users must swap your Exchange MCO balance via the Swap program, and transfer their MCO balance to the App.
All MCO amounts locked in “staking” wallets will be converted at the MCO Swap Rate. However, the existing staking benefits that you enjoyed before performing the swap will remain unchanged, the blog added.
“If you have staked 500 MCO before performing the swap, your 500 MCO stake will be converted into a 13,820 CRO stake. You will continue to enjoy the same benefits (e.g. 3% cashback, Spotify and Netflix rebates, among others).”
However, if a user decides to unstake their CRO, 13,820 CRO will be returned to your CRO Wallet, the blog noted.
Crypto.com boasts one of the highest interest rates among other projects in the crypto space. Those staking over 50,000 CRO on the Crypto.com App will receive earnings weekly, at an earnings rate of 16% p.a. (for 50,000 CRO staked) and 18% p.a. (for 500,000 CRO staked and above).
MCO pumps 20%
Meanwhile, traders rushed for opportunities in MCO and CRO after the announcement. The former pumped over 20% within minutes, as some suggested the bonus created an “arbitrage” opportunity ahead of the bonus payouts.
The increase in minimum requirements to be eligible for Crypto.com cards also went up, serving as another factor for holders to purchase tokens:
It pumped more than 20%.
In any case I find this the most interesting part of the announcement. pic.twitter.com/yIqziYRBGc
— Stan Schroeder (@franticnews) August 3, 2020
MCO, currently ranked #88 by market cap, is up 39.42% over the past 24 hours. MCO has a market cap of $88.35M with a 24 hour volume of $66.48M.