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A rewrite of code with the Monaco token, removing its smart contract scheme, saw the value of the coin plummet, causing a loss of confidence among investors who are moving away
At the end of October, the Monegasque token was trading around $ 10.51, with a market capitalization of $ 103 million. However, on November 2, he plunged to $ 4.75, bringing his value back to $ 46.6 million, according to CoinMarketCap.
This was despite the fact that Monaco had announced that it was teaming up with Visa for a Visa Monaco prepaid card.
At the time, Kris Marszalek, co-founder and CEO of Monaco, declared:
Our team has worked incredibly hard over the past year to reach this milestone. This is an important step towards Monaco's vision of introducing cryptocurrency to the mass market.
It is estimated that more than 17,000 Visa cards have been reserved.
Regardless of this, however, the rewrite of the code prompted investors to sell their chips, which resulted in a significant drop in prices.
In an explanatory video on social media, Marszalek said it was because of "legal" and "commercial" concerns that had led to the decision.
This decision is great for the long-term protection of the value of all token holders, "he said in the company's defense.
The news of this has brought a lot of criticism from members of the community. Taking to Twitter, an individual named Clutch, said:
Wake up people. For your own good. There are a hundred other good crypto opportunities. $ mco scam. They have finished.
Al Sobky added:
What is the interest of the chips ?? Ahhhh you ripped off the community … you should be ashamed of yourself … happy to have sold at the top.
Yet, the team believes that by removing the regime of asset contracts, it will make them suitable for being listed on the stock exchange. He is currently trading on Bittrex, YoBit and Binance; However, these exchanges exchange the coin against bitcoin and ethereum. As such, speculation increases with a weak generation of fresh fiduciary money.
Through its partnership with the Visa card, it offers up to two percent discount on MCO tokens for all transactions. These tokens can then be exchanged for bitcoin, ethereum or fiat, according to the site of Monaco .
The Monegasque token has since slightly recovered and is currently trading at $ 6.45. It remains to be seen if the token can still increase its value. At its peak, Monaco chips were valued at more than $ 27 in September, figures from the CoinMarketCap contest.
Image from Shutterstock to photo