Crypto.com token price drops after its Visa card rewards slash
A blogpost from Crypto.com published on Sunday announced that the company would slash rewards across all membership tiers for its Visa rewards card starting June 1.
The Visa card allows Crypto.com users to spend their crypto and stablecoins as fiat currency anywhere that accepts Visa payments, given that cardholders top up funds periodically and stake its native token Cronos (CRO). Rewards vary according to how much cardholders contribute, the membership/ card tiers are: Midnight blue; Ruby steel; Royal indigo/ Jade green; Icy white/ frosted rose gold and Obsidian.
Cash back rewards for Obsidian cardholders will be slashed from 8% to 5%; for Royal indigo/ Jade green cardholders 3% to 1.5%; for Ruby steel cardholders 2% to 0.5 % and 1% to 0% for Midnight blue cardholders. Rewards will be limited to US $25 to $50 per month for lower tiers.
Monthly rewards (in CRO tokens) will be capped from US$ 25 to US$ 50 while no caps are imposed on the higher tiers.
Staking rewards will also cease after the 180 day period for cardholders who staked on May 1 or earlier, except for Midnight blue and Ruby steel cardholders.
“CRO staking rewards will no longer be offered to Jade Green, Royal Indigo, Frosted Rose Gold, Icy White, and Obsidian cardholders from the Effective Date,” according to the blogpost. Other benefits for cardholders would remain, such as cashback on subscription services and airport lounge access. As well as interest rates on Crypto.com’s Earn product that allows users to earn up to 14% on crypto holdings.
CRO’s price has fallen by nearly 20% as a result of the decision, CRO was trading over US$ 0.36 on Sunday and fell to around US$ 0.29 on Monday.
Cardholders are lashing out their disdain on social media, with a majority of them deciding that CRO token no longer has substantial utility and that they would take their holdings as soon as their currency staking periods are up.