Crypto.com (CRO) will limit the monthly cashback of its cards from June 1, 2022
Crypto.com (CRO) has just announced important changes to the holders of its bank cards. As of June 1, 2022, the platform will drastically reduce the amount of cashback in CRO received on each purchase in order to “to ensure long-term sustainability”.
card users Midnight Blue (the only card that doesn’t require you to deposit CRO) are going to have to say goodbye to their rewards. Until now, holders received 1% of the amount of their purchases in CRO.
The decline also affects higher-end cards, such as the Ruby Steel. If you have not deposited CRO, you will no longer receive any cashback. The amount of card rewards Royal Indigo / Jade Green, Icy White / Frosted Rose Gold and Obsidian will now range from 0.5% to 5%. So far, the cashback rate has risen to 8% for the highest-end card.
Along the same lines, Crypto.com will also limit the maximum amount of cashback to be collected each month for some cards. Ruby Steel holders will not be able to receive more than $25 in CRO, compared to $50 for Royal Indigo/Jade Green. Crypto.com states that it “There is no monthly CRO rewards cap for Icy White, Frosted Rose Gold and Obsidian cardholders”.
Finally, the platform announces phasing out of CRO staking. Users will no longer be able to receive rewards on CRO deposited in the app. Crypto.com points out that people who deposited cryptocurrencies before the May 1st date continue to receive the rewards during the token lockout period. The exchange specifies that the other advantages of the cards remain unchanged:
“You will continue to receive refunds for your favorite monthly subscription services, including Spotify, Netflix and Amazon Prime. […] Jade Green, Royal Indigo and other higher tier cardholders can continue to enjoy unlimited complimentary airport lounge access.”
👉 On the same topic: How to unlock the $25 bonus on Crypto.com?
Crypto.com (CRO) Lowers Earn Savings Interest Rates Further
A few days earlier, Crypto.com announced a drop in interest rates of its Earn savings formulas. The platform will now break down interest rates into 3 levels. For deposits under $3,000, you continue to earn the full interest promised in the app.
If you deposit more money, you will only receive half the promised rate on the $3,000 to $30,000 range. Finally, users who have deposited more than $30,000 will have to settle for a third of the interest rate. The decrease concerns deposits locked for a period of one or three months. Rose Gold, Icy White and Obsidian cardholders “will still be entitled to 2% additional allowances per year”.
As a reminder, the exchange had already lowered its interest rates in April. Crypto.com justifies these consecutive changes by highlighting its ” rapid growth ” and “the current market environment”. Contacted by us, customer service specifies that it is “of a commercial decision taken by the department concerned”.
The competition is rubbing its hands
This massive overhaul of the Crypto.com offer risks benefiting the many competitors in the sector. Frustrated by the exchange’s new rates, many users may turn to growing services like Nexo, Celsius or Plutus. The latter also split a mocking tweet in reference to Crypto.com:
“Have your rewards been reduced?” Looking for a new crypto card? Don’t worry, we’ve got you covered! ».
The Card business got way too CROwded so it’s time for a new King to take over
Instead of spending our money on fancy Hollywood actors, naming rights & F1 drivers who only go in circles we have found a sustainable way to pay YOU MORE!
—Alex Mashinsky (@Mashinsky) May 1, 2022
Alex Mashinsky, CEO and Founder of Celsius, also reacted to Crypto.com’s decision by saying that the “card business has become too crowded” and it’s high time “for a new king to take over”. The platform specializing in borrowing and investing cryptocurrencies recently announced the launch of its first bank card.
These announcements come as Crypto.com relied on a very aggressive communication campaign to recruit new customers. The exchange notably forged a partnership with Angel City FC in Los Angeles before offering advertising during the Super Bowl.
Crypto.com has also become known to the general public thanks to a television commercial featuring actor Matt Damon. The company does not intend to stop there. The exchange has signed an agreement with Fifa to become one of the official sponsors of the 2022 World Cup.
👉 Read also: Crypto.com (CRO) asks French users to repay their loan by March 15, 2022
Source: Crypto.com, Twitter
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