Crypto.com has opted to reverse its decision to slash card staking entirely after backlash from the cryptocurrency community.
What Happened: On Monday, Singapore-based cryptocurrency exchange Crypto.com said it would reduce the rewards on its visa-based cards.
The move to lower rewards was not well received by the community. The crypto exchange’s native token Cronos CRO/USD fell by more than 17% on the day.
You really dropped the ball there, @cryptocom …
A lot of people stuck in your 6 month staking now suffer from the decline in value of the Cronos coin.
And the new rules make using your card really unattractive.
I am really mad right now… literally mad!!! https://t.co/uhTnCRwdof
— MonikasArt.eth/.tez #Peace | We are Itsuki (@MonikaNFT) May 2, 2022
I already got Icy White and just re-staked to wait for Obsidian card…
But as soon as it unlocks I’m dumping everything. Why would anyone in crypto stake for these terrible rewards, when they can put it in a DeFi farm.@kris made a big mistake. CDC is no longer special or cool https://t.co/vWdFUim8YF
— wolf (@ImNotTheWolf) May 1, 2022
Following the widespread community backlash, Crypto.com CEO Kris Marszalek said that it would be revising the proposed rate changes.
“The community has been really vocal about the changes to the card program announced on Monday. “We care deeply about the community, we hear you & always listen to you. As a result, we’re revising card staking rates,” Marszalek said on Twitter.
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.
— Kris | Crypto.com (@kris) May 3, 2022
Price Action: According to data from Benzinga Pro, CRO was trading at $0.29, down 5.34% over the past 24 hours.