Crypto.com Faces Community Backlash After Staking Rewards Slash
2022.05.03 20:11
Crypto.com Faces Community Backlash After Staking Rewards Slash
- Crypto.com has decided to reduce rewards for its Visa (NYSE:V) cardholders.
- The announcement was made on May 1 and stated that the rewards will be reduced by an average of 69.5%.
- The announcement had a negative impact on the price of CRO.
Crypto.com has decided to reduce rewards for its Visa cardholders, and many crypto fans are questioning this decision.
The announcement was made on May 1 and stated that the rewards will be reduced by an average of 69.5% and even by 100% for the lowest tier Midnight Blue cardholders. The reason for these changes was said to be to “ensure long-term sustainability.” For the highest tier card, rewards will drop from 8% to 5%.
There is some good news for cardholders who had an active account before May 1 as they will not see their reward changes until their current term expires.
In addition to rewards changes, certain card tiers will have limits. The Ruby Steel card, for example, will have a $25 per month limit while the Jade Green cards will have a $50 monthly limit.
The current stakers are understandably bothered by these new changes, and one well known staker, Devchart, went as far as to call the decision “the dumbest move of the day.”
The CEO of Crypto.com, Kris Marszalek, responded to the backlash in a Tweet where he said that “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% for Royal Indigo and Jade Green card holders.”
The announcement had a pretty negative impact on the price of CRO as the price dropped from $0.36 to $0.28 by the end of May 1. Over the last seven days,the coin’s price was a jaw dropping 30% price decrease, according to CoinGecko.
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