Crypto.com Chain Spikes 1,000%, But is This an Elaborate Pump and Dump?
A very confusingly named crypto project has quickly risen up the crypto rankings to become a top 20 coin with it jumping some 10x in about three days.
The very newly launched ERC-20 token called Crypto.com Chain (CRO) has many excited about these stupendous gains, but theres one problem: they cant sell the CRO.
You see, theres an innovation of sorts whereby there is no ICO, no pre-sale, no staking, no mining. Well, thats if words dont mean anything.
Technically this is sort of a continuous Initial Coin Offering whereby a tiny amount of the total supply, just 4%, has entered circulation by being purchased from an app run by CRO Protocol Labs as they call themselves.
The rest is to be distributed through an airdrop with people already seeing how much they will get in 2020, but theyre not able to actually sell this allocation.
Google doesnt reveal anything about CRO Protocol Labs, but its the same team that had a vanilla ICO in 2017 for an MCR token that raised about $26 million mainly in eth.
That was by Monaco Technologies GmbH which was founded in June 2016 by Kris Marszalek (pictured left), the current CEO.
They then rebranded to crypto.com in July last year after the domain was apparently bought for circa $10 million.
It isnt very clear why they rebranded, but controversy arose after they scrapped what they called an Assets Contract.
To translate it simply, investors were told MCO was a token that will be used to reserve platinum tiered debit cards and that will be redeemable for a proportion of the fees earned by the MCO platform.
Apparently what they got, however, was just a token that will be used to reserve platinum tiered debit cards. That led to a backlash, thus presumably the rebrand.
We tried to reach someone from the team, but did not receive any response in time for publishing. So its a bit unclear why they need this CRO token when they have MCO.
What is clear is that the total supply of CRO is meant to be 100 billion, but only 4 billion has entered the market by being purchased from their app where you can also buy bitcoin and other digital assets.
This 4 billion is freely tradable, with an airdrop for MCO holders released monthly. The design is somewhat complex. Just how much of the monthly circa 170 million CRO you get depends on how many MCO you held as an average for 12 months.
Then, once the CRO is allocated, you cant move the funds for 12 months. You can see, however, how much CRO you technically have, so you can get very excited about this price rise, but you cant actually liquidate the funds.
So creating a community that sort of has the tokens, but doesnt actually quite have them yet, with a window here for the team itself to not-ICO.
Thats until at least 2020 when the market might then be flooded with all these new tokens that have been sitting on the app for months.
By comparison, MCOs market cap is $50 million, while CRO is at close to half a billion. Youd think it would be the other way around since MCOs get free CROs, but thats not ...Read full story on Trustnodes