Users of VISA cards offered by Crypto.com aren’t quite happy as the exchange pulls the plug with staking rewards and reduces them considerably, a move that seeks long-term sustainability of the business.
Last Sunday, May 1, crypto exchange Crypto.com announced severe reductions in the Cronos (CRO) staking rewards for users of its VISA prepaid card. The result was that the CRO price tanked by 30% in less than a week.
During its Sunday announcement, Crypto.com said that it will reduce card rewards by an average of 69.5% and 100% on its lowest tier Midnight Blue card. The crypto exchange also called it a measure “to ensure long-term sustainability”.
All these changes shall come effective June 1, 2022. But cardholders with an active six-month CRO stake before the Sunday announcement won’t see change until their term expires.
The decision led to a massive backlash among community members on social media platforms such as Twitter and Reddit. As a result, Crypto.com has reconsidered its previous decision to fully end staking rewards. Explaining this, Crypto.com CEO Kris Marszalek said:
“The community has been really vocal with regards to the changes to the card program announced yesterday. We care deeply about the community, we hear you & always listen to you. As a result, we’re revising card staking rates.
Instead of eliminating card staking earn rates completely, we will offer a more balanced approach: 8% APY for Private Members (Obsidian, Icy White, and Frosted Rose Gold) 4% APY for Royal Indigo and Jade Green card holders.”
Stakers Still Not Happy with Crypto.com
Although crypto exchange Crypto.com has reconsidered its decision, the revised staking returns are still less than the current one. Thus, some users have been still expressing their dismay. One of the popular crypto analysts Devchart wrote:
“And for the dumbest move of the day, Crypto.com $CRO decided to reduce their staking rewards, add some stupid monthly cap reward that removes staking incentives. Thankfully I just care about the crypto to debit for my expenses but yeah that was a moronic move”.
Crypto.com CEO Marszalek said that the move was essential to ensure the “long-term sustainability” of their business. In an email to CoinTelegraph, the exchange said:
“Crypto.com is committed to offering the best possible products and services that meet the needs of our customers around the world. Our recent changes were made to bring our substantially scaled programs closer to long-term sustainability, and we continue to provide attractive rewards and opportunities to our customers”.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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