Crytpo.com has just announced an overhaul of its offer. The exchange has drastically lowered the amount of cashback on cards and interest rates offered on Earn savings. Cashback reduction in CRO, removed rewards and monthly caps… We take stock of what awaits users.
Crypto.com (CRO) will limit monthly cashback on its cards from June 1, 2022
Crypto.com (CRO) has just announced some important changes to its bank card holders. Starting June 1, 2022, the platform will drastically reduce the amount of CRO cashback received on each purchase to “ensure long-term sustainability.”
Users of a Midnight Blue card (the only card that doesn’t require CRO deposits) will have to say goodbye to their rewards. Until now, cardholders have earned 1% of the amount of their purchases in CRO.
The drop also affects higher-end cards, such as the Ruby Steel. If you have not deposited CRO, you will no longer receive any cashback. The cashback amount for the Royal Indigo/Jade Green, Icy White/Frosted Rose Gold and Obsidian cards will now go from 0.5% to 5%. Until now, the cashback rate was as high as 8% for the top of the range card.
In the same vein, Crypto.com will also limit the maximum amount of cashback that can be collected each month for certain cards. Ruby Steel holders will not be able to receive more than $25 in CRO, compared to $50 for Royal Indigo / Jade Green. Crypto.com states that “there is no monthly cap on CRO rewards for Icy White, Frosted Rose Gold and Obsidian cardholders.”
Finally, the platform announces the phasing out of CRO staking. Users will no longer be able to receive rewards on CRO deposited in the app. Crypto.com notes that those who deposited cryptocurrencies before the May 1 date will continue to receive rewards during the token lock-in period. The exchange says other card benefits remain unchanged:
“You will continue to receive reimbursements for your favorite monthly subscription services, including Spotify, Netflix and Amazon Prime. […] Jade Green, Royal Indigo, and other senior cardholders can continue to enjoy unlimited free access to airport lounges.”
Crypto.com (CRO) lowers Earn savings rates again
A few days earlier, Crypto.com announced a drop in interest rates for its Earn savings plans. The platform will now break down the interest rates into 3 tiers. For deposits under $3,000, you will continue to earn the full interest promised in the app.
If you deposit more money, you’ll only collect half the promised rate on the $3,000 to $30,000 tier. Finally, users who deposited more than $30,000 will have to settle for one-third of the interest rate. The decrease is for deposits that are locked in for a period of one or three months. Rose Gold, Icy White and Obsidian cardholders “will still be entitled to 2% extra allowances per year”.
As a reminder, the exchange had already lowered its interest rates in April. Crypto.com justifies these consecutive changes by highlighting its “rapid growth” and “the current market environment”. Contacted by our care, the customer service specifies that it is “a commercial decision taken by the department concerned”.
The competition is rubbing its hands
This massive overhaul of Crypto.com’s offering is likely to benefit the industry’s many competitors. Scalded by the new rates of the exchange, many users could well turn to services in full growth, such as Nexo, Celsius or Plutus. The latter actually made a mocking tweet in reference to Crypto.com:
“Have your rewards been reduced? Looking for a new crypto card? Don’t worry, we’ve got you covered!
Alex Mashinsky, CEO and founder of Celsius, also reacted to Crypto.com’s decision, saying that the “card industry has become too crowded” and that it’s high time “for a new king to take over.” The platform that specializes in borrowing and investing cryptocurrencies recently announced the launch of its first bank card.
These announcements come as Crypto.com has relied on a very aggressive communication campaign to recruit new customers. The exchange has partnered with Los Angeles’ Angel City FC before taking out an ad during the Super Bowl.
Crypto.com also became known to the general public thanks to a television commercial featuring actor Matt Damon. The company doesn’t intend to stop there. The exchange has signed an agreement with Fifa to become one of the official sponsors of the 2022 World Cup.
