Crypto.com Plummets by 30% As It Cuts Down Staking Rewards
- Crypto.com cuts down the staking rewards for its Visa cardholders.
- The decision hit hard as the CRO almost lost 30% price in the week.
Global crypto exchange Crypto.com recently announced its decision to reduce the Cronos staking rewards for most of its Visa cardholders. The decision had an immediate effect on the token price, causing it to fall almost 30% in the week.
The company announced the decision in a Sunday blog post.
Crypto.com decided to drastically cut e staking rewards by 69.5% and 100% on its low-end Midnight blue card.
The highest-end card, called the Obsidian card, which requires at least $400,000 worth of CRO to be staked for eligibility, witnessed a drop of 3% to 5%. The changes are said to be effective from June 1.
The decision was not well received
While the changes go into effect from June 1st, there is one small hope for current customers. Those who have staked their tokens for at least six months will only have the new rates applied after their staking term expires.
The decision doesn’t end there. In addition to reducing staking reward percentages, there will be a limit imposed on the maximum rewards for three of the cards provided. The Ruby Stell will have a $25 monthly reward limit, whereas the Royal Indigo and Jade Green cards will have a $50 monthly reward limit.
Stakers seem to be quite upset about this decision as one of the high profile staker called @Devchart told his Twitter followers that it's one of “the dumbest moves of the day.”
In response to the backlashes, the CEO of Crypto.com, Kris Marszalek, said that the company would take a more balanced approach. The decision had a visible impact on the price of CRO, Crypto.com’s native token. At the time of writing, the token slowly recovered and is trading at $0.2952.
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