Never change a winning team ! – Crypto.com card and rewards revisions caused the price of CRO to fall by 11%. The community expressed a new time his dismay at the changes that were to come into effect after June 1. Additionally, it was planned to stop offering staking rewards to cardholders after a period of 180 days. Community fury paid off and the exchange had to back down
Crypto.com Visa Card Reviews
In a blog post, Crypto.com said it would cut its Visa card rewards according to certain levels. Midnight Blue and Ruby Steel levels were to get 0%. Royal Indigo and Jade Green were to get 0.5%. Icy White and Frosted Rose Gold were to get 1%. Finally, Obsidian, the highest tier, was only expected to get 2%.
Monthly rewards on lower tiers were to be capped at $25-$50. However, there was not supposed to be reward cap for higher levelsaccording to the company.
Rewards on Crypto.com cards were also set to cease after the 180-day period ended for anyone who received them through May 1. Except for the cards of the two lowest levels. This was a steep drop from current rates.. Indeed, it is currently 1% on lower level cards. The rate of the cards of the highest level goes up to more than 8% depending on the staked funds.
Crypto.com prepaid cards are a popular product in the crypto-sphere. They allow users to upload supported cryptocurrencies or stablecoins and spend in fiat at merchants who accept Visa.
However, other card benefits, such as cashback on subscription services, were to continue. Furthermore, interest rates on Crypto.com’s Earn productwhich allows users to earn up to 14% on crypto holdings, were to remain unchanged.
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The CRO does not get lathered
Map users expressed their dismay at these changes on the social networks Reddit and Twitter. Most of them criticized this decision.
“I will continue to use the card for the rest of my staking period, then withdraw and say goodbye to the card”said a user on Reddit. “It’s not the end but they just lost a lot of customers”said another.
On Twitter, some said that the rates of return offered on decentralized finance (DeFi) applications were much more lucrative. They are indeed a better way to make your idle capital grow.
Prices for CRO, the native token of Crypto.com, have dropped 11% at the time of writing. In fact, most of the losses occur right after this award decision. Indeed, CRO traded above $0.36 on Sunday and fell to $0.29 on Monday before recovering slightly.
“The staking of CRO tokens has enabled rewards for users and incentivized use of their debit card (…) The reduction in cashback rewards has reduced the intrinsic value proposition of CRO. This is similar to how DeFi protocols use liquidity mining to attract assets. It is often meant to seed liquidity, and we see in DeFi that when the incentives dry up, often the token price takes a hit. »
Edson Ayllon, Product Manager at dHEDGE
As of writing, Crypto.com CEO Kris Marszalek said the company will continue to offer staking rewards to its card users. He announced the cancellation of planned changes to the rewards programs.
Indeed, this choice, which had provoked a strong reaction among the members of the community, had to be reviewed. Crypto.com therefore reconsidered its decision to completely end staking rewards. Card users lock in CRO there for a period of 180 days to earn returns.
“Instead of completely eliminating card staking win rates, we will be offering a more balanced approach: 8% APY for private members (Obsidian, Icy White and Frosted Rose Gold) 4% APY for Royal Indigo cardholders and Jade Green »
Kris Marszalek, CEO of Crypto.com
The rewards are still lower than those currently offered. Some users therefore still express their dissatisfaction. Kris Marszalek, however, noted that the changes were necessary to ensure “long-term sustainability” returns offered on the exchange card.
This kind of cards are becoming more democratic and Crypto.com could have lost quite a few users in his approach. Some have already announced that they will turn to DeFi or to Binance exchange map.
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