Simplifying Hive Bookkeeping
Yesterday morning, Crypto.com CEO Kris Marszalek held a live AMA on Twitter to anser about 30 pre-submitted questions from users of the service. In the AMA, Marszalek addressed questions about yesterday's surprise token swap and other matters.
The reasoning for the token swap is that MCO was initially launched as an ICO. As Crypto.com has grown to be multi-jurisdictional, MCO has been increasingly a risk for Crypto.com in terms of regulatory scrutiny. Crypto.com makes it a goal to play the long game. They recognized that continuation of MCO would be a threat to their compliance, long-term. So, they made the decision to do the token swap of MCO to CRO.
As far as the swap ratio, this decision was based on a couple of things. First, there is the practical ratio of what Crypto.com could afford. As a four year old company, they have only recently become profitable. Based on their capital, they could only afford the token swap rate that they selected. Second, their decision to use a 30 day average to determine the value of MCO is within industry standards, according to Marszalek.
Crypto.com listened to customer feedback and have modified the card staking tiers from multiples of 5,000 to multiples of 1,000. In other words, the first card tier starts at 1,000 CRO. The second tier is at 10,000 CRO, and so on. This makes the cards much more affordable for now. It will be a different story if CRO ever goes up in price. At least for now, many members are able to comfortably afford their existing card tier if the choose to unstake and restake in future.
The remainder of the AMA was about specific concerns in different markets. USA citizens would be glad to learn that work is still underway for launching the Exchange. The holdup there is mainly regulatory compliance. Once they clear those hurdles, they would very much like to have the Exchange available to those customers. They are also working on AUD banking options for customers of Australia who have had to use Singaporean Dollars to use their cards. Marszalek answered many more questions with interesting details. It is worth watching the AMA.
CRO is expected to go mainnet before the end of 2020. Crypto.com expects that this will go a long way in supporting their three main businesses, which are the exchange, finance, and payments. Marszalek expects that many of their decisions, even if controversial, will prove their value in the long term. Although he seemed a bit down during the AMA, Marszalek approached the AMA in a very matter of fact way. There were no apologies offered for the MCO swap decision, which was a good decision. Apologizing would have given unhappy customers a platform from which to further blast Crypto.com. In his explanation at one point, Marszalek stated, "that's just the way it is", which could be interpreted as uncaring. However, it speaks more to their willingness to make sound business decision even when they may prove unpopular.
One interesting note is that Kris Marszalek mentioned early in the AMA that a majority of Crypto.com customers have made the swap. He made note that there are a few holdouts clinging to their MCO. This shows that a majority of customers are happy or indifferent to the swap. Furthermore, most of the anger directed at Crypto.com is a small core of vocal users. This indicates that the swap has been largely successful and that Crypto.com just needs to weather the storm of criticism from the critics. Their core business will remain.