Crypto.com Slashes Rewards And Puts CRO At Risk

Crypto.com became one of the major crypto exchanges. They invested heavily in marketing the past year and this year atracting a lot of users. One of the advantages crypto.com was giving to its users was the ability to get their credit card and earn cashback rewards for using it. The only thing that users had to do was stake CRO, the more the user staked the better card they would get.

All of these made an incredible impact on the price of CRO which reached an all time high of 0.965$. Many users grabbed the opportunity and the token went up fast.

This brings us to today, crypto.com decided to slash the rewards for their cards and also slash the returns on staking of CRO. They already had slashed some APY from some coins but now they decided to do a drastic cut down.

Most of the cards will become obsolete with the staking rewards cut down to zero. The amount of money a user has to invest doesn't justify only having Netflix and Spotify has a reward. This means that the whole system is becoming unusable with many probably opting for other solutions instead of these cards.

What does this means for CRO?

The token of crypto.com, CRO, already suffered a huge fallout, it sits now at 0.272$ and has fallen 30% in the last seven days. This is bad news for CRO holders, the token has become nothing more than a crypto exchange token and has no further usability than this. Crypto.com needs to come back with something to justify investing in their token and right now the picture isn't good. Investors were expecting high returns on their CRO following the huge marketing campaign and a huge flow of users. Now the sentiment has flipped with investors blaming crypto.com decision to slash the rewards for the huge downtrend on the price of CRO.

Although the exchange seems good and easy to use, the usability of CRO just went to zero, is crypto.com putting a nail in its coffin with this extreme decision?

Users might leave the platform and opt for another one that gives them some of the benefits crypto.com was giving them. This is a huge decision on the part of crypto.com and the story might not end here. Let us see if CRO can stop falling like a knife or if crypto.com has another use for CRO that they still didn't tell us about.

Best Regards,

Cryptopeach