After Massive Community Backlash CryptoCom Will Revise Recent Reward Staking Changes
Kris Marszalek – CEO of the digital asset exchange CryptoCom – said the community did not welcome the company’s decision to cut card rewards. As such, the platform will revise the reward system to find an appropriate solution.
Seeking the Right Move
The cryptocurrency exchange CryptoCom made an important announcement yesterday (May 2), informing it will cut down Cronos (CRO) rewards on card usage. Users with lower-tier cards, including the Midnight Blue and Ruby Steel, will get 0% on CRO rewards, while those with the highest level – Obsidian – will receive 2%.
In addition, the company noted that its monthly bonuses for the lower-tier cards will be capped between $25 and $50. At the same time, higher-tier ones will have no monthly rewards cap. The changes are scheduled to become effective from June 1.
The update caused a significant backlash from the community as many users said these changes will make them move to another exchange. CryptoCom’s decision also harmed the platform’s native token – Cronos (CRO). Yesterday, the latter tumbled to a six-month low of $0.27, while currently, it trades at around $0.29.
Noticing those unpleasant trends, Kris Marszalek – Chief Executive Officer of the platform – said CryptoCom will take into account all users’ opinions and revise card staking rates.
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.
As a result, we’re revising card staking rates.
— Kris | Crypto.com (@kris) May 3, 2022
How Would it Work?
Marszalek later explained some of the new ideas his company has for users. Instead of slashing staking earn rates entirely, CryptoCom will have a “more balanced approached.” Meaning, that it will offer 8% PAY for Private Members (with the highest tiers such as Obsidian, Icy White, and Frosted Rose Gold). Those with Royal Indigo and Jade Green will have an APY of 4%.
The executive justified the initial decision to reduce the rewards by saying it was made to “ensure long-term sustainability.” He also highlighted his company’s recent growth, including multiple high-profile partnerships and attracting millions of users, and promised CRO investors that there’s “a lot of innovation coming to Cronos.”
A lot of innovation is coming to Cronos, including attractive yields for the community. https://t.co/pFc4Pz9nFR will make it all easily accessible.
Thank you for your feedback and continued support
— Kris | Crypto.com (@kris) May 3, 2022
Text source: CryptoPotato
