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    Crypto.com Cuts Card Rewards to Customers’ Dismay

    Key points

    • Staking benefits will be phased out and cashback rates on Crypto.com’s popular prepaid Visa cards will be reduced, the company stated yesterday.
    • The adjustments, which will take effect on June 1, will reduce the reward rates on the company’s cards from 1% to 8% to 0% to 2%, depending on the card’s tier.
    • The action has prompted outrage among the community, with the CRO token dropping 17% on the day.

    On June 1, Crypto.com announced that it would phase out staking rewards and reduce cashback rates on its Visa cards. The action has outraged the community, with many now doubting the validity of the card and the company’s health.

    Crypto.com reducing cashback benefits

    Nobody is delighted about a downgrade to one of crypto’s most popular prepaid cards.

    Crypto exchange and service provider Crypto.com said on Sunday that it would be reducing the staking and cashback benefits on its Visa-backed prepaid cards, effective June 1. Previously, Crypto.com cards could earn anywhere from 1% to 8% in CRO cashback, depending on the card’s tier level. However, with the current modifications, the rates have been lowered to 0% for the first two tiers, and 0.5 percent, 1 percent, and 2 percent for the top three tiers. Prior to the most recent revisions, cardholders had to deposit $400,000 in CRO tokens on the Crypto.com platform in order to receive the highest payback rate of 8%, or the so-called Obsidian card. With the new adjustments, Crypto.com is completely eliminating staking payouts, leaving only the drastically reduced non-staking benefits.

    Crypto.com – what it says about its decision

    “From the Effective Date, CRO staking rewards will no longer be available to Jade Green, Royal Indigo, Frosted Rose Gold, Icy White, and Obsidian cardholders,” the business wrote in a blog post. The remaining card advantages, such as 100 percent reimbursements for Netflix, Spotify, and Amazon Prime memberships, will stay unchanged.

    The project’s native token, CRO, dropped by about 17% on the day as a result of the changes to Crypto.com’s card incentive system. Many of the company’s users expressed disappointment that the tokens and cards were no longer worth having or utilizing. “I’m not going to lie: I was just using their card for this purpose.” One of the most popular comments on a Reddit discussion about the modifications noted, “Have to look around for anything fresh.” Another user, AdrianoDM, stated that he would “use the card for the remainder of my staking term, then unstake and bid farewell to the card.”

    Reaction to Crytpo.com’s decision

    Since the announcement of the modifications on Sunday, many threads on Crypto.com’s dedicated subreddit have popped up questioning the company’s health and the feasibility of the prepaid cards in general. One of the day’s most popular posts, titled “Is this it?” hinted that reducing card benefits was “the biggest error” the corporation could have made, while another sought answers from corporate executives on their future strategy.

    The removal of staking rewards appears to have reduced the value of holding the company’s native token, CRO. Many users have already stated that the CRO token no longer has any significant utility and that they will liquidate their holdings once their staking lock-up periods expire.

    The price of the CRO token is currently around $0.29 per coin, down over 70% from its all-time high in November.

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