Popular cryptocurrency exchange CryptoCom has come under fire following its latest decision to slash its staking rewards. In a blog post published on Sunday, the platform revealed that effective June 1, it would cut down Cronos (CRO) rewards on card usage.
CryptoCom Slashes Card Rewards
As per the update, users with lower-tier cards, including the Midnight Blue and Ruby Steel, would get 0% on CRO rewards. Those with Royal Indigo and Jade Green would receive 0.5%; Icy White and Frosted Rose Gold would receive 1%, and users with the highest level of CryptoCom cards, Obsidian, would receive 2%.
The new update is a significant change in the CRO rewards, considering that the current rates are 1% for the lower tiers and over 8% for the highest tier.
Additionally, the exchange noted that its monthly CRO Card rewards for Ruby Steel and Royal Indigo/ Jade Green would be capped between $25 and $50 respectively. The higher tier cards, however, would have no monthly rewards cap.
CryptoCom also pointed out that it would no longer offer staking rewards to cardholders, except for those with Midnight Blue and Ruby Steel, which are the two lowest tiers. However, cardholders who have an active 6-month stake and those who staked before May 1 will continue to receive their CRO rewards until the end of their 180-day staking period.
Other benefits that cardholders enjoy, including 100% cashback on subscription services such as Amazon Prime and Netflix, complimentary airport lounge access, and more, would remain unchanged.
CRO Plummets As CryptoCom Users React
CryptoCom users have expressed their displeasure with the latest updates on the platform’s cards and staking rewards. Some users stated that they no longer had any reason to continue on the exchange following the recent changes.
Shortly after the company announced the update, its native token, CRO, plummeted. The cryptocurrency is currently down 15% over the past 24 hours and is trading at $0.29 at the time of writing.