Crypto.com has just announced an overhaul of its offer. The exchange has drastically reduced the amount of cashback on cards and the interest rates offered on Earn savings. Cashback reduction in CRO, removed rewards and monthly caps… We take a look at what’s in store for users
Crypto.com (CRO) to limit monthly cashback on its cards from 1 June 2022
Crypto.com (CRO) has just announced some important changes to its bank card holders. From 1 June 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 does not require CRO to be deposited) will have to say goodbye to their rewards. Until now, cardholders received 1% of the amount of their purchases in CRO.
The drop also affects the higher-end cards, such as the Ruby Steel. If you have not deposited CRO, you will no longer receive any cashback. The reward amount for the Royal Indigo / Jade Green, Icy White / Frosted Rose Gold and Obsidian cards will now go from 0.5% to 5%. Previously, the cashback rate was as high as 8% for the top of the range card.
In line with this, Crypto.com will also limit the maximum amount of cashback that can be earned each month for certain cards. Ruby Steel cardholders 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 application. Crypto.com points out 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 refunds 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.
Some days earlier, Crypto.com announced a drop in interest rates for its Earn savings plans. The platform will now break down interest rates into 3 tiers. For deposits of less than $3,000, you will continue to earn the full interest promised in the application.
If you deposit more money, you will only earn half the promised rate on the $3,000 to $30,000 tier. Finally, users who have deposited more than $30,000 will have to settle for one third of the interest rate. The reduction applies to 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”. When contacted, the customer service department said that this was “a commercial decision taken by the department concerned”.
Competitors are rubbing their hands together
This massive overhaul of Crypto.com’s offering is likely to benefit the industry’s many competitors. Many users, disgruntled by the exchange’s new rates, may well turn to fast-growing services such as Nexo, Celsius or Plutus. Plutus tweeted mockingly in reference to Crypto.com:
“Have your rewards been reduced? Looking for a new crypto card? Don’t worry, we’ve got just the thing for you”
The Card business got way too CROwded so it’s time for a new King to take over
Instead of spending our money on fancy Hollywood actors, naming rights & F1 drivers who only go in circles we have found a sustainable way to pay YOU MORE!
All Aboard! @CelsiusNetwork $CEL pic.twitter.com/vx7NS8xKnq
– Alex Mashinsky (@Mashinsky) May 1, 2022
Alex Mashinsky, CEO and founder of Celsius, also reacted to Crypto.com’s decision by saying that the “card industry has become too crowded” and that it is high time “for a new king to take over”. The platform that specialises 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 communications campaign to recruit new customers. The exchange has partnered with Los Angeles’ Angel City FC before taking out an advert during the Super Bowl.
Crypto.com also made itself known to the general public thanks to a television ad featuring actor Matt Damon. The company does not intend to stop there. The exchange has signed an agreement with Fifa to become one of the official sponsors of the 2022 World Cup
