Crypto exchange Crypto.com announced a big reduction for CRO staking prizes for generally VISA prepaid card rates that forced the token price down by about 30% in less than a week.
Blog 1 May send explains that card rewards will be reduced by an average of 69.5%, and 100% on the lowest-rate Midnight Blue card “to ensure long-term sustainability.” On top -level Obsidian cards that require at least $ 400,000 in CRO to purchase, the reward will drop from 8% to 5%. Changes to the rewards schedule will take effect on June 1st.
However, cardholders who have active shares six months before May 1 will not see a change in the rewards schedule until the current season expires.
In addition to the reward rates, there will also be a cap on the three tiers of the card. The Ruby Steel rate will have a $ 25 monthly limit while the Royal Indigo and Jade Green cards have a $ 50 monthly limit.
Stakers are now irritated by the sudden movement of exchange to exchange rewards. Devchart’s high-profile Staker told 170,000 Twitter followers on May 2 that the exchange’s decision was “the most stupid move today.”
And for the most stupid move today, https://t.co/2VyM3mIsbK $ CRO decided to reduce the staking rewards, adding some monthly cap rewards that removed the staking incentive.
Luckily I only care about crypto to pay the cost but yes it is a moronical move. pic.twitter.com/qhhpatlpsi– Devchart (@devchart) 1 May 2022
In response to reactions from the community, Crypto.com CEO Kris Marszalek tweeted on May 3, that the planned changes will be set to reflect a “more balanced approach.”
He said, instead of issuing individual changes per tier, Private Members who use Obsidian, Icy White, and Frosted Rose Gold cards will earn 8% annually. Owners of Royal Indigo and Jade Green will earn 4% annually. This arrangement has not been confirmed on the exchange blog.
Instead of eliminating card staking by rates, 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 cardholders
– Kris | Crypto.com (@kris) 3 May 2022
When Cointelegraph asked about the exchange about the expected sustainability of the prize reduction, a Crypto.com spokesperson responded via email:
“Crypto.com is committed to offering the best products and services that can meet the needs of customers around the world. Our recent changes are made to bring our scale programs closer to long-term sustainability, and we continue to offer exciting gifts and opportunities to our customers. customers.
related: Cronos Crypto.com partners with Chainalysis to track CRC-20 tokens
The news had a clear negative impact on the price of CRO, the original token for the CRONOS blockchain network Crypto.com. The CRO price began falling on May 1 from $ 0.36 at the start of the day to $ 0.28 at the time of writing according to Cointelegraph data. It has lost a whopping 30% over the past seven days according to CoinGecko.
