Crypto.com u-turns on plans to scrap staking rewards amid backlash
Crypto.com chief Kris Marszalek said the firm will reinstate staking rewards for card users a day after scrapping the program.
The price of Crypto.com’s native CRO token plummeted by as much as 11 per cent after the company announced plans to change the rewards scheme for its visa card holders on Sunday.
The crypto trading platform has now bowed to pressure from card users and today confirmed it would reverse the policy.
“The community has been really vocal with regards to the changes to the card program,” chief executive Kris Marszalek wrote on Twitter.
“As a result we’re revising card staking rates.”
First launched in 2018 Crypto.com’s visa backed crypto linked credit cards allow users to earn yields by staking CRO tokens for a 180-day lock up period. Holders of the top tier Obsidian card, which requires users to stake $400,000 worth of CRO, are reimbursed for Netflix, Spotify and Amazon Prime subscriptions as well as receiving 10 per cent of Expedia and Airbnb bookings and a yield of eight per cent on their investment.
In a blog post on Sunday Crypto.com said reducing rewards would ensure the “long-term sustainability,” of its business model.
“Instead of eliminating card staking earn rates completely, we will offer a more balanced approach: 8 per cent APY for Private Members (Obsidian, Icy White, and Frosted Rose Gold) 4 per cent APY for Royal Indigo and Jade Green card holders,” Marszalek wrote in a statement today.
CRO token has today lifted by 5.4 per cent to trade at $0.29 following the announcement.
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