Monaco (MCO) Pumps 100% On Bithumb Listing, Raising Questions

  • MCO/BTC market pumps 100% on Bithumb listing news
  • Monaco company sends multiple 500,000 MCO transactions to Bithumb prior to announcemnet for 'strategy to increase liquidity'

Monaco Trading

Monaco (MCO) an ERC20 token that aims to create a cryptocurrency payment card has pumped 68% upon its listing on the South Korean exchange, Bithumb.

Volume spiked from what was previously a relatively low volume market and pushed the price up 100% in only an hour to a high of 0.0025 BTC. At the time of writing Monaco is up 60% on the day, at a price of 0.001712 BTC.

Insider Trading Allegations

There were worries that insider trading had occurred as the announcement made from Monaco’s Twitter account occurred at 06:02 AM GMT and the spike started five minutes earlier. However, when asked for a statement Monaco told CryptoGlobe:

bithumb issued their announcement at 1:57pm KST/12:57HKT. Our tweet followed 5 mins later at 2:02pmHKT/1:02pm HKT.”

They also stated:

"Monaco has measures in place to control access to confidential market sensitive information and members of our personnel with access to it are restricted from trading on non-public information.”

Monaco

Monaco Pre-Loads Bithumb Wallets

Prior to the announcement, three large transactions of 500,000 MCO each were sent from the company’s wallet to a fresh address. One such transaction was noticed by a member of the Monaco discord group which started the rumours that an exchange listing was imminent, perhaps explaining why the market reacted so quickly to the announcement.

Monaco Discord Chat

Monaco explained to CryptoGlobe that these transactions were part of their “strategy to increase liquidity and access to the MCO token.”

Taking a look at the 1 day market share of MCO/BTC BitTrex and Binance dominated the market following the announcement at 06:00 AM GMT.

Monaco Exchange VolumesMCO/BTC Exchange Volume Share

Questions Raised

Despite the insider trading questions being mostly answered, traders are still wondering why a single exchange listing has caused such a large pump. Especially since there was no announcement regarding improvements to the Monaco product.

Monaco have not achieved many of the projects and promises they outlined in their whitepaper (the original whitepaper and roadmap documents for Monaco are hard to find). Which has to make any rational investor question why the token pumped 100% on a simple exchange listing.  

Tether Gold (XAU₮): A New Tokenized Gold Product Built on Ethereum and TRON

Siamak Masnavi

On Thursday (January 23), Tether launched a new product called Tether Gold (XAUt), which is a crypto token -- available as an ERC-20 token on the Ethereum blockchain and as a TRC20 token on the TRON blockchain -- representing "ownership of one troy fine ounce of physical gold on a specific gold bar" held in a Swiss vault. 

Paolo Ardoino, CTO at Tether, had this to say:

There is growing demand for digital exposure to physical gold, making the launch of Tether Gold a timely innovation in the crypto ecosystem. Tether Gold provides the combined benefits of both physical and digital assets, removing the drawbacks of holding gold in more traditional ways, such as high storage costs and restricted access.

The XAUt token "can be transferred to any on-chain address from the purchasers' Tether wallet where it is issued after purchase." A particular gold bar(s) "will be associated with each on-chain address where Tether Gold is held."

The allocated gold is "identifiable with a unique serial number, purity and weight" and XAUt token holders are able to verify "the details of the gold bars associated with their address" via the Tether Gold product page on the Tether website. 

Tether Good Lookup.png

Tether Gold is a cryptoasset issued/sold by TG Commodities Limited (a UK company incorporated in December 1998). Each XAUt token represents "one troy fine ounce of gold on a London Good Delivery gold bar" and may be "fractionalized up to six decimal places (i.e. in increments as small as 0.000001 troy fine ounce)." 

Here are a few more important things you should know about Tether Gold:

  • You need a verified account with TG Commodities Limited if you want to buy XAUt directly from its issuer. The minimum purchase amount is 50 XAUt (worth approximately $78,250 as of 23 January 2020). The purchase price must be paid in USD.
  • XAUt tokens can be traded on supported exchanges (such as Bitfinex) "in fractions as small as the exchanges permit.", but you do need to pay 
  • There are no custody fees, but you do need to pay "a one-time 25 basis point fee at the time you purchase an XAUt from TG Commodities Limited and certain additional fees on redemption." 
  • To redeem Tether Gold tokens, you need a verified account with TG Commodities Limited. You must have at least "one full bar of gold worth of tokens" in order to use the redemption service. The physical gold can be delivered to either somewhere in Switzerland or the XAUt token holder can ask TG Commodities Limited to sell their physical gold and receive USD from the proceeds of the sale. 

Featured Image Credit: Photo via Pixabay.com