Crypto.com Updates CRO Card Yield Rates Following Community Uproar and 30% Token Tumble
According to a thread released by the platform’s CEO Kris Marszalek on Tuesday (May 3, 2022), the yield earning program will continue but a lower APY rate will be implemented.
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. 🧵
The announcement comes off the back of massive opposition from the community after the exchange disclosed its decision to terminate the reward structure. Following the news, the price of the platform’s native token CRO tumbled, further enraging users and drawing more criticism on the decision.
As previously reported by EthereumWorldNews, the behemoth exchange released a statement on Sunday (May 1, 2022) informing its CRO cardholders of plans to suspend staking rewards until further notice.
Furthermore, the platform also unveiled a monthly cap for its non-private members. Details from the statement explained that the changes would come into full effect on June 1, 2022.
Almost immediately, the post on Twitter faced significant backlash as community members called out the exchange and dubbed the decision as “unfair to investors”.
Crypto.com Continues Staking Reward Program But With Revised Yield Rates
Moving forward, the platform has decided to maintain its CRO card reward structure. However, changes have been made to the previous earning rates.
CEO Marszalek explained that private users with Obsidian, Icy White, and Frosted Rose Gold CRO cards can earn up to 8% APY on their staked CRO. Also, a 4% APY rate will apply to Royal Indigo and Jade Green cardholders.
The updated rates are supposedly an attempt an provide a balanced program while maintaining the yield earning program, per Marszalek’s thread.
These are of course tough decisions — nobody wants benefits to be reduced, least of all me. Given our large scale though, it is necessary to ensure long-term sustainability.
However, the sentiment on social media appears unchanged as users remain dissatisfied with the announced changes. Some users have also suggested moving to competitors like Coinbase and FTX.
(1/2) You disappoint me, Kristopher. At this point, it's all too clear that @cryptocom is disinterested in maintaining conviviality with the community. Nevertheless, we never expected an insult as brazen as a mere 4% staking reward for Jade+ holders.
I just locked for 180 days for jade less than a week ago can I unlock please? I’m already down 33% and now have no way to make the money back. Would rather just sell and continue to use @coinbase card for 4% back w no minimum or max cb and @FTX_Official for 6% apy.
As of press time, the CRO token remains on the downtrend after dipping more than 30% following the initial news.
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