Great confusion was caused by representatives of the Crypto.com exchange, who issued an announcement about the planned significant reduction of rewards for staking CRO tokens. However, a revolt from the community led to a change in the decision.
Immediate reaction of the community
After the information of Crypto.com representatives, about cutting the rewards for staking, a real storm erupted in social media. It flared up primarily on Twitter and Reddit. Comments were, of course, in the vast majority of negative, and the price of the CRO token itself fell in a few hours by almost 11%.
Recall that so far, Crypto.com card users had the opportunity to earn from staking CRO tokens blocked on their accounts, for a period of 180 days. Taking away or limiting such possibility was treated as a fraud. According to the new rules, users with lower level cards, including Midnight Blue and Ruby Steel, will receive 0% CRO rewards. On the other hand, those with the highest level Obsidian – will receive 2%. An additional planned limitation was to be the cutting of bonuses for lower level cards to $25-50 per month.
Many Crypto.com users immediately declared that in the face of such a situation they were planning to move to another exchange. Undoubtedly, this was a real image blow for Crypto.com, which so far has taken exceptionally special care about PR. Fortunately, the CEO decided to revise his plans.
Changes instead of liquidation
Kris Marszalek, seeing the revolt of the community, decided to react. He changed the strategy to one he calls “more balanced”. According to its assumptions the rewards for staking will continue to be available to all Crypto.com card users and will be as follows:
8% will be given to Private Members (with the highest levels such as Obsidian, Icy White and Frosted Rose Gold). Those with Royal Indigo and Jade Green cards, on the other hand, will be able to count on an APY of 4%.
As Marshal points out, the initial decisions may not have been the most accurate but were made to “ensure long-term stability.” He also pointed to the exchange’s rapid growth and numerous partnerships that have so far attracted millions of users and which the exchange has no intention of losing.