CRO Trims Losses as Crypto.com Scraps Plan to Cut Rewards After Community Backlash
The crypto platform Crypto.com is again changing its stance on rewards in its own CRO token to cardholders, after a backlash from the community on plans to cut token rewards. CRO trimmed some of its earlier losses following the announcement.
At 13:07 UTC, CRO traded at almost USD 0.30 and was up less than 1% in a day and down 26% in a week. The token traded at USD 0.268, down from more than USD 0.36 before the plan to cut rewards was announced.
“The community has been really vocal with regards to the changes to the card program announced yesterday. We care deeply about the community, we hear you & always listen to you,” Crypto.com CEO Kris Marszalek wrote on Twitter on Tuesday.
He added that instead of eliminating card staking earn rates completely, “a more balanced approach” will now be offered. This will include an 8% annual yield for Private Members (Obsidian, Icy White, and Frosted Rose Gold), and a 4% APY for Royal Indigo and Jade Green card holders, the CEO wrote.
The update Tuesday morning came after Crypto.com on Sunday said CRO rewards would no longer be offered to cardholders. The move led to a large backlash from the community, which perceived it as making Crypto.com’s payment cards significantly less attractive to use.
Attempting to explain why the company made the move in the first place, Marszalek said on Tuesday that the decision was “tough,” while adding: “given our large scale though, it is necessary to ensure long-term sustainability.”
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