This is the reason why Crypto.com price is free falling
- CRO price bleeds 7% overnight as Crypto.com introduces a cap on monthly card rewards.
- The Crypto.com community condemns the decision to offer 0% rewards to lower-tier cardholders.
- Crypto.com’s CRO price crumbled after the community reacted in dismay over the exchange’s announcement that it will not be offering rewards to lower tier cardholders anymore, with effect from June 1.
CRO price plummets as community condemns reward program changes
In a blog post, Crypto.com revealed changes in rewards on the usage of its Visa-enabled cards in several tiers. The exchange platform announced 0% rewards for lower-tier cardholders, such as Midnight Blue and Ruby Steel and 0.5% for Royal Indigo and Jade Green. Meanwhile, the highest tier Obsidian would receive 2% rewards.
The CRO community has condemned the reward structure, and the token’s price took a nosedive, posting 7% losses overnight.
Crypto.com Visa cards were launched in November 2018 and offered to users across 40 countries. More recently the platform has wanted to ensure the long-term sustainability of the card and introduced a myriad of changes, effective June 1, 2022.
https://t.co/vCNztABJoG Visa Cards Update: changes to the CRO Card rewards programme
— Crypto.com (@cryptocom) May 1, 2022
️ Effective 1 June 2022
✅ No change to card terms until your active 180-day stake expires
✅ No change to 100% reimbursements of popular subscriptions & unlimited airport lounge access pic.twitter.com/LZFHaW46hD
Though cardholders with an active 6-month stake were offered CRO earnings at the current rate until the end of the 180 days, the new rates looked unattractive to holders. The exchange introduced a cap on rewards on the Ruby Steel and Royal Indigo cards.
Monthly CRO Card rewards
There are no other changes in card benefits, and members continue to receive 100% reimbursements on their monthly subscription services. Higher-tier cardholders continue to enjoy services like airport lounge access.
Interestingly, post Crypto.com’s announcement, nearly 70 million CRO has been undelegated from the Crypto.com chain.
Staked CRO
Analysts have revealed a bearish outlook on Crypto.com price and predicted a further drop in the token.
At the same time, they argue that as long as the CRO price remains below $0.50 this is the right time to accumulate Crypto.com.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
