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 there’s one problem: they can’t sell the CRO.
You see, there’s an innovation of sorts whereby there is no ICO, no pre-sale, no staking, no mining. Well, that’s if words don’t 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 they’re not able to actually sell this allocation.
Google doesn’t reveal anything about CRO Protocol Labs, but it’s 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 isn’t 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 it’s 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 can’t 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 can’t actually liquidate the funds.
So creating a community that sort of has the tokens, but doesn’t actually quite have them yet, with a window here for the team itself to not-ICO.
That’s 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, MCO’s market cap is $50 million, while CRO is at close to half a billion. You’d think it would be the other way around since MCOs get free CROs, but that’s not the case.
The South Korean crypto exchange Upbit has just added CRO, but total volumes are small at just $8.6 million, with Bittrex handling circa $7.7 million of it.
MCO was to fund a crypto debit card that has now gone out only in Singapore with numerous Twitter users showing it off. It will then eventually go out in America and Europe.
The card is toped up though their app with it funded by just crypto for now. Eventually fiat will be added. Once it is toped up, then the card itself is plain fiat.
CRO is currently an eth based token, but eventually it will be its own crypto on its own blockchain which claims to “enable cross-asset intermediary currency settlement.”
Looking at the “technical” whitepaper this to us seems more of a plain semi-centralized blockchain with Council Nodes, Merchant Nodes and Agent Nodes in addition to “settlement agents.” They say:
“To increase cryptocurrency acceptance with merchants, it is key to be able to provide them with price stable conversion post-settlement options.
Settlement Agents will perform this service via CRO currency conversion to currencies deemed stable (transaction details including rates will be recorded on-chain, settlement will happen off-chain).”
So it’s kind of just another blockchain, but with new terms, and actual conversion obviously happens off-chain, but since details will – presumably manually – be entered on the blockchain, they get to market this as a sort of BitPay, but on the blockchain.
The whitepaper is dated 5th of December 2018, so presumably there’s been hardly any work done on this blockchain, but that hasn’t stopped it from gaining a close to half a billion market cap in this bear market with it aided by the 12 months lock-up period.