As the German giant of Fintech Wirecard sinks under the bewildered eyes of the financial and technological sector, the young crypto ecosystem begins to feel more or less intense side effects. Wirecard was known “crypto-friendly“, And many blockchain start-ups have entered into partnerships with the company in order to be able to offer crypto-fiat gateways with physical payment cards. Concerned in the first title, the company crypto.com and its panel of services articulated around the duo of token CRO / MCO and its offer of payment card under license Wirecard is impacted very directly, to the dismay of its many customers.
This mishap – beyond his control – will it be likely to compromise the projects of crypto.com which nevertheless had everything of the success story? On the contrary, will this misadventure allow him to demonstrate his capacities for resilience? Finally, value in full rise in recent months, will the CRO and MCO tokens undergo a descent into Hell similar to that of the Wirecard action? We go around.
Wirecard – A German ocean liner in the midst of a shipwreck
It’s the sinking ofa Fintech flagship which everyone still believed 10 days ago that it represented the future of an entire section of Finance: under the amazed eyes of the whole industry, giant Wirecard executed a memorable 1.9 billion euro exit scam.
If at the outset the situation of the German company seemed very compromised, we learned a few hours ago that the English regulator had just banned exercise Wiregard in GB. This latest bad news comes after the declaration of bankruptcy de Wirecard, who has already warned that she will probably not be able to repay her nearly 4 billion euros in debt.
If the disaster is undeniable – we are already talking about the biggest fintech shipwreck of the decade – especially since it intervenes in the worst possible economic context, more than the situation of Wirecard itself, it is those of thousands of its professional customers users of its services that worries. And among them, many firms in the crypto and blockchain ecosystem.
Perhaps the most exposed structure in this respect, the well-known company crypto.com is particularly affected by the direct consequences of the sinking of Wirex
Crypto.com and unnecessary cards
Crypto.com was one of Wirecard’s customers for one of its iconic products, the linchpin of some of its success in recent months: his “metal” payment card, allowing you to fart it at Monoprix, and above all to ensure a bridge between daily payments and crypto currencies held in your wallet.
Wirecard dropped, cards already sent to customers have become inoperative. As for those on pre-order, you might as well say that everyone will do better to save shipping costs in the weeks and months to come.
Crypto.com is quite effective in terms of communication, so the company was quick to communicate the situation on its blog.
After taking note of the cessation of Wirecard’s operations in Great Britain, Crypto.com is reassuring on the funds of its users: fiat funds will be converted into customer wallets into stablecoins.
“Our clients’ funds are safe. Our team is working on the re-credit of crypto wallets with funds equivalent to the fiat card balances. We hope it will be completed within 48 hours. We are also working on transferring the card program to a new supplier, so that we can resume issuing cards in the UK and Europe and allow existing and new customers to benefit from our card program again. We apologize for the inconvenience this has caused you. “
Crypto.com official press release
The opportunity to recall that if Wirecard was an important player, there are other payment gateway solutions which should allow Crypto.com to resume operations once the uppercut has been digested.
Note that according to clients of the company, funds have already been re-credited in the form of USDC stablecoins. In addition, Crypto.com said that everything indicated that the current holders of the physical payment card could likely continue to use it even after transfer to another payment provider (on the other hand, it seems that for customers awaiting manufacture / dispatch, things are less well started).
CRO and MCO tokens, dead on borrowed time or unprecedented opportunity?
Pillars of Crypto.com’s strategy, the two tokens CRO and MCO accuse the blow, necessarily. The MCO thus gives up 20% in a few days, passing from higher at 4.41 € to 3.63 € at the time of writing. A pretty cartridge, far from the correction that circumstances could have inflicted on the crypto currency.
The whole question now is this: often seen with suspicion, Crypto.com will be judged on its ability to manage this crisis. If the company is transparent, efficient and manages to restore balance, it will demonstrate that it has its place in the industry. On this condition, its two currencies CRO and MCO will be able to regain an insolent form retroactively passing the current period for a unique opportunity to position itself in assets. And if on the contrary Crypto.com proves unable to bear the load, or lets settle an impression of amateurism, – or worse to conceal the reality of the situation– the start of a fall in prices seen this week could be just a taste of a painful tomorrow.
Nice to meet you, it’s Hellmouth! Editor-in-Chief of Cryptocurrencies, the crypto media you are honoring to survey right now (well done, you have taste).
Crypto-enthusiast of the second hour, nothing is more important to me than supporting the global adoption and democratization of the treasures that the blockchain offers us.
I write articles between two cocktails in Tahiti, my adopted island, and do not hesitate, if the opportunity arises, to feast on a plump scam or a little too enterprising Ponzi pyramid.
Did you not like the article? Do you want to give me your opinion on a subject, or offer me one? You can come and bawl like a polecat or pour out on my LinkedIn profile, on Facebook, or Bitcointalk