Many people find it very strange that mco marketcap is so low compared to cro. Some people think this is evidence of CDC suppressing the price of mco using a fractional reserve system. However I would like to say that even if they are operating a fractional reserve does not mean that the price will never explode it simply delays when it occurs and also likely will increase the amount it does when it happens.
Yes the people who stake forever could be used as reserve but this is unlikely to occur and cdc is obviously aware of this because mco's price is coupled to btc yes they can supress Mcos price vs btc but not versus usd if say btc increases to 100,000 mco will likely increase to 40$ at this point even if they do their best to supress it it will likely still get above 30$. It is also likely if the price moves up significantly they will give up supressing it and lower stake amounts instead imagine they are suppressing the price currently and it shoots up so much that they give up.The movement up would be even faster as a result.
people will be far more likely to downgrade their stakes or eliminate them entirely whats more this would occur nearly all at once which is the worst scenario for them they would essentially have a bank run to deal with. Yes they have the 15.5m mco reserve that they said they would not touch that they could use to cover a bankrun but how much could they realistically do this for lets assume they run out of the normal supply sometime this year and they continue to operate fractionally in order to be fully safe they can only do at best maybe a ratio dependent on their insurance because they can't assume btc will not skyrocket also not all coins are staked many millions of coins are on exchanges like Binance and Huobi.
This means they really can only be safe operating **fractional reserve on staked coins** and coins on their customer wallets but you can assume most are staked because earn rates for mco are much lower than cro and staki...