Crypto.com Token Drops 25% After Stake Reward Drop
- May 3, 2022
- 0
Cryptocurrency platform Crypto.com has announced a significant reduction in rewards for staking CRO tokens for prepaid cards. The price of the asset reacted by falling. Visit our blog
Cryptocurrency platform Crypto.com has announced a significant reduction in rewards for staking CRO tokens for prepaid cards. The price of the asset reacted by falling.
Visit our blog for more details 👉 https://t.co/cMWQdhKoY7
— Crypto.com (@cryptocom) May 1, 2022
On May 1, the company published the new rates, which will take effect in a month. On average for cards, the rewards of funds blocked in the CRO for 180 days will be reduced by 69.5%. Midnight Blue entry-level cards will no longer be able to bet.
Crypto.com has also placed a limit on the amount of monthly rewards. It will be $25 a month for Ruby Steel and $50 a month for Royal Indigo and Jade Green.
The company described the change as a need to “ensure long-term sustainability.” The community reacted negatively to the announced innovations.
— 🎯 TrustInMemes 🎯 (@jessedurant13) May 1, 2022
On May 3, Crypto.com CEO Chris Marszalek said the decision would be changed to provide a “more balanced approach.”
“The community was very vocal about the changes announced to the card program. We care about you, we hear and listen to you. As a result, we are reviewing the odds,” he wrote.
The community has really spoken out about the changes made to the card program announced yesterday. We care deeply about the community, we hear you and we always listen to you.
As a result, we are revising the card staking rates. 🧵
— Chris | Crypto.com (@kris) May 3, 2022
Instead of completely waiving the rewards, the company will offer 8% per annum staking for Obsidian, Icy White and Frosted Rose Gold cards. For Royal Indigo and Jade Green the rate will be 4%. At the time of writing, no official platform solution has been released.
After the announcement of the staking changes for cardholders, the CRO token suddenly dropped from around $0.36 to $0.265 – around 26%. The price returned to around $0.29 after Marszalek’s message about the proposed change in the company’s decision was published.
According to CoinGecko, the price of the asset has dropped 28% in the past seven days, placing it 21st in capitalization among cryptocurrencies of approximately $7.3 billion.
Recall that in January Crypto.com was hacked. The company initially denied the loss of funds, but later admitted that $34 million was withdrawn without authorization.
Source: Fork Log
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