ICO Analysis: Monaco
Monaco is a debit card and mobile wallet solution for Bitcoin and Ethereum whose ICO launched Thursday with so-far moderate success. At time of writing, the tokens were being sold at a rate of 150 MCO per ETH, or about 63 cents each. Since we’re late to the party, we’ll limit this analysis to the potential merits of the token itself.
- Monaco will add currencies under the ECR20 standard which have a total market capitalization of more than $500 million.
- Monaco will streamline the KYC process for users via its mobile application.
- The MCO token is intended to help fund marketing and distribution of Monaco cards, as well as allow early-bird investors a chance to later achieve appreciable gains. From the whitepaper:
- “At any time, a holder of MCO can “Redeem and Burn” the MCO for their pro-rata share of each token held by the MCO Asset Contract. The holder will irrevocably destroy the MCO, and in exchange, the MCO Asset Contract will transfer the underlying tokens to the holder.”
- This means, in practice, that MCO holders would be able to go directly from MCO to cash/goods if there were a price rise or if they wanted to exit due to a price reduction.
- The first 999 people to sign up for a Monaco Visa card will receive extra benefits, including triple free ATM withdrawals and lifetime fee-free exchanges of tokens to cash.
- Monaco is far from the only Bitcoin or Ethereum debit/fiat usage card.
The last point in the above list is perhaps the most important. The value of Monaco and the MCO token will have a lot to do with market demand for the cards themselves. Since they are competing with many other plays in that space, there should perhaps be legitimate uncertainty. This reality is addressed in their whitepaper, and the reader is free to take it for what it’s worth:
MCO token will have a market value at or above the assets contained in the MCO Asset Contract. If the value goes below, market participants will be incentivized to purchase MCO and burn it; this will then push the value of MCO back up.
In all honesty, this writer sees no good reason to invest in the MCO token aside from the fact that it won’t be readily available in other methods later on (but they could run a second sale at a later time), although people may find the card and application itself useful. Nevertheless, in terms of recovering your value if you do invest, a valid safety rating might ring in at about 5.1. This takes account for the fact that dealing with private enterprise, especially start-ups using nascent technology, the potential for overall failure and collapse is of course very real.