Crypto.com released an update regarding its reward structure
The exchange opted to reduce the reward rate rather than completely halt the program
The decision comes a few hours after heavy backlash from the community
CRO token prices are still down despite the reversed decision
Social media sentiment also remains negative
Shortly after canceling staking rewards on its crypto Visa cards, heavyweight digital asset exchange Crypto.com has provided an update on its decision.
According to a thread released by the platform’s CEO Kris Marszalek on Tuesday (May 3, 2022), the yield earning program will continue but a lower APY rate will be implemented.
The announcement comes off the back of massive opposition from the community after the exchange disclosed its decision to terminate the reward structure. Following the news, the price of the platform’s native token CRO tumbled, further enraging users and drawing more criticism on the decision.
As previously reported by EthereumWorldNews, the behemoth exchange released a statement on Sunday (May 1, 2022) informing its CRO cardholders of plans to suspend staking rewards until further notice.
Furthermore, the platform also unveiled a monthly cap for its non-private members. Details from the statement explained that the changes would come into full effect on June 1, 2022.
Almost immediately, the post on Twitter faced significant backlash as community members called out the exchange and dubbed the decision as “unfair to investors”.
Crypto.com Continues Staking Reward Program But With Revised Yield Rates
Moving forward, the platform has decided to maintain its CRO card reward structure. However, changes have been made to the previous earning rates.
CEO Marszalek explained that private users with Obsidian, Icy White, and Frosted Rose Gold CRO cards can earn up to 8% APY on their staked CRO. Also, a 4% APY rate will apply to Royal Indigo and Jade Green cardholders.
The updated rates are supposedly an attempt an provide a balanced program while maintaining the yield earning program, per Marszalek’s thread.
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.
However, the sentiment on social media appears unchanged as users remain dissatisfied with the announced changes. Some users have also suggested moving to competitors like Coinbase and FTX.
As of press time, the CRO token remains on the downtrend after dipping more than 30% following the initial news.