CRO token down 12% after Crypto.com reduces rewards on Visa Cards

May 2, 2022
CRO token down 12% after Crypto.com reduces rewards on Visa Cards

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Cronos (CRO) has turn out to be one of many worst-performing cryptos, buying and selling at $0.310417, down 12.86% within the final 24 hours.

One of many foremost causes for the worth of CRO to drop token is a weblog put up that Crypto.com trade printed on Sunday, Might 1st, noting that they’d diminished the rewards they had been providing on their lower-tiers Visa playing cards. Crypto.com additionally mentioned that it had diminished the CRO staking rewards by greater than a half.

The trade additionally added that from 1st June its Midnight Blue card tier won’t offer rewards to its clients however different tiers like Icy White, Obsidian and Ruby metal will provide diminished rewards. As well as, there can be a reward spending cap, the place the very best quantity of the reward can be locked at $50 monthly.

Crypto.com, nevertheless, termed this a “tough choice”  saying that it needed to be accomplished due to the necessity for sustainability.

The slashing of the rewards earned the trade numerous criticism on social media the place customers acknowledged that they got fewer CRO staking choices and fewer use of the Visa playing cards. Some additionally threatened to go for different crypto card operators like Coinbase and Binance.

Nevertheless, this isn’t the primary incentive lower the trade has made this yr. In March, it lower the rate of interest on token deposits twice giving prior discover to its customers. 

Regardless of the challenges, the Crypto.com trade nonetheless appears to be rising by the day with over 10 million customers in addition to the truth that it will likely be the official sponsor of the FIFA World Cup 2022.

Decreased crypto Lending actions

Crypto.com’s latest transfer portrays a broad subject in crypto lending because of the rising U.S rate of interest, excessive inflation, excessive returns, and weak market efficiency which have gotten unsustainable. A rise in crypto adoption results in extra account holders which makes large payouts unachievable.

Nevertheless, this subject has been principally skilled within the majority of the DeFi lending platforms the place they’re pressured to decrease the rates of interest because the person counts and deposits proceed to develop. Crypto lending platforms may additionally observe go well with because the adoption price improve.

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