Wirecard ripple effects: MCO Cards Suspended, CRO also dumpingsteemCreated with Sketch.

in hive-126009 •  last month 

A day after Germany's payment processor Wirecard announced to file for insolvency, Crypto.com's Visa debit card operations has been stopped in UK and whole of Europe.

In a Statement issued by Crypto.com, the company told that FCA has requested them to stop all activity on their card programs in the UK and Europe.

So customers of MCO visa cards can no longer top up or transact with their cards in in UK and Europe. However crypto.com has assured that customers funds are safu:

Our team is working on processing credits to the crypto wallets equivalent to the fiat balances held on the cards. We expect this to be completed within 48 hours.

They are also on a lookout for a new provider for resuming their card program in the above two affected regions.

But without any ETA, markets responded appropriately by dumping hard the MCO.

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When Wirecard's share prices collapsed below 4 euros from a higher 100 euro last week, it's no surprise that MCQ has dumped to about $4 from a recent high of about $5.5. Be prepared for more dump to come!

What's surprising to me is that Crypto.com's exchange coin CRO is also at a receiving end of these developments.

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Its a victim by association! 😁

Some people are using this "opportunity" to propagate the narrative that crypto.com is also a scam. So people want to exit both MCO & CRO. But these are just market sentiments.

Do you see any buying opportunity there?

Well, it will be very risky thing to do.

Personally, I'll buy CRO if it falls below $0.10 and MCO too if it comes under $3. But a small amount though!

How about you?

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I have been hovering over the buy button for MCO for a few days but after reading this I think I'll wait for further falls.

3% cashback and 6% staking rewards for 500 coins is tempting - another flash-crash to 25000 sats and I'm in :)

WOW, your patience is appreciable! I don't think I'll be bale to wait until 25K sats but you are motivating me :)

I wish, you're able to get in soon. In case, you succeed, please feel free to use my referral for the app ;)

I am registered with the app, have been for a while but haven't added much crypto.

25000 is a punt but as I'm not desperate, I'd rather see if they fall into my lap than go chasing :)

Not being desperate is the best investment strategy ever.

Yeah, so difficult too!

i like CRO, but I bought MCO relunctantly... mistake so far.

Yeah, like due to what xyzashu discusses in the post. Bummer!

I'm following your blog posts regularly and was thinking about taking your offer for joining crypto.com a week-two before...

I had some doubts (and still have) about their "earning model", as I didn't understand how they can pay 6-14% for "staking" some of the most popular cryptos that have no staking implemented in their chains...

Actually, that was the reason why I didn't join, but I'm still interested in it... Of course, I will wait for a bit to all this settles...

Thanks for these updates, appreciate it!

Lucky for you that you didn't take that offer at that time. Now you have got better rates and a chance to avail it. But now you know that cards are no longer available in Europe.

You have raised a very important question. Let me try to answer it, if I can.

Crypto.com is a new Exchange but the company already had about 1M customers before the public launch of Exchange in December, 2019. But Crypto.com is not just another Exchange, it aspires to get into the top-10 slot withing next 5 years if not sooner.Working for such high ambitions has its own cost. That's why it's aggressively running several promotions and running several offers. To my understanding, al these are its new customer acqusition cost.

Also, if you have noticed, all offers have some caveats or limitations. Like new customers are being offered 0% trading fee but only for first 6 months, reduced trading fee but on staking CRO, etc.

Most of the offers require CRO staking (like tp avail 50% Syndicatee discounts), The Syndicate deals necessitates purchases through CRO and are capped with some upper & total limit. Many rewards are also being paid in their own coin CRO. E.g. 2% soft staking rewards on your Exchange deposits are paid in CRO (not liquid, but staked) ...and this also has a upper amount limit and time limit of 30 days only. For availing that they ask for at least 3x trading volume on your deposits in 6 months. Implying that the reward will be released after 6 months.

Today I won some promotion reward in their Weekly Telegram Madness event and they are going to pay me in their own coin CRO. So most of the promotional activities is part of a distribution plan for their own coin.

Regarding their Earn scheme, where they are offering interest on your staked coin in the very coin you staked, it also has an upper limit for investment. Secondly, this is the cost of raising liquidity from the market. If you read their terms for Earn scheme carefully, they take your consent to convert your asset into any other digital asset and lend it further to borrowers. So they are earning higher interest rates on your capital and offering you a share of their earnings. The same way as banking institutions work.

You can also ask your doubt to their official Telegram or Twitter. They can tell you better.

But I'm very hopeful of this Exchange and I think it can do better than many top Exchanges. The best thing is it is not charging any listing fee, unlike Binance and others. This will make it easy for several bootstrapped blockchains to get listed. They also have their own CRO chain and are offering validation rewards for running its node. This opens up many possibilities. But let's see, only time will tell!

It's always good to wait and observe them in case of doubt.

Thanks a lot for the awesome reply! It helped me a lot to understand the numbers...

Will see how it goes in the future with cards in the EU... as that was the main reason for thinking about them...

Yup, I agree with you and thought the same thing. How can they be so much more attractive than other exchanges /staking services is a midterm to me.

So I stay away even if I might be wrong.

Cheers 🥂 mate

I picked up MCO around 2.30 so im pretty okay with the drop also means more stake to pick up so I don't mind one bit. I don't own CRO though, I think that these companies have shown a real robustness in the market and with fiat fraud and tools clearly failing it may be a good time to sure up your position in these ecosystems