Beginning June 1, Crypto.com announced that it would phase out staking rewards and reduce cashback rates on its Visa cards. The community that has supported these Visa cards are questioning this move. They are not sure what this means in regards to the company itself.
The announcement went live on Sunday via a blog post where the company announced that it would be cutting back on the cashback rewards on its visa prepaid cards. Before this announcement, cardholders could get 1% to 8% in CRO cashback rewards. Differing based on the cards tier level. With the new changes on the cards, the rates are at 0% for the first two tiers. For the top three tiers, they stand at 0.5%, 1%, and 2%.
Previously, cardholders were to secure $400,000 worth of CRO tokens to get the highest possible cashback rate of 8% or get what they call an Obsidian card. Crypto.com is eliminating staking rewards on their cards with the new changes, leaving only significantly decreased non-staking perks.
The company mentioned in a blog post, “CRO staking rewards will no longer be offered to Jade Green, Royal Indigo Frosted Rose Gold, Icy White, and Obsidian cardholders from the Effective Date.” The remaining card advantages, such as 100 percent reimbursements for Netflix, Spotify, and Amazon Prime memberships, will stay unchanged.
The native token of Crypto.com, CRO, was hovering on the 17% mark the day the news went live. Some users of the company itself complained that the token is not worth holding anymore and the card will be left with no use. One of the card users said “Ouch, not going to lie: this was the only reason I was using their card. Have to look around for something new”. Another user said he’d “use the card for the remainder of my staking period and then unstake and say goodbye to the card.”
The removal of staking rewards appears to have reduced the value of the company’s native token, CRO. Many users have already said that the CRO token no longer has any significant use and would liquidate their holdings once their staking lock-up periods expire. The token now trades at $0.29 per coin, down 70% from the high it was at in November.