Crypto.com community in turmoil about shortened rewards

It was time that there were a little controversy in the world of cryptocurrencies, right?

Crypto.com, the industry giant with over ten million users and four thousand employees, was the focus of a storm of criticism this week when he decided to shorten the premiums of his popular Visa cards.

The blog entry fell on Sunday evening.

what's going on?

card rewards were shortened quite drastically. Lower users (Midnight Blue and Ruby Steel) receive 0 %, while the next higher ones only get 0.5 % back. Even the top level (obsidian) was reduced to only 2 %. There will also be a monthly upper limit for premiums for lower levels of $ 25 to $ 50.

Oh, it comes even worse. Staking awards were also governed. After the 180-day period for everyone who had been completed before the announcement date (May 1st), St ), all staking bonuses are set, with the exception of the lowest two levels. This is very important because the higher levels before Sunday staking bonuses had well over 8 %.

reaction

I noticed in my time on this planet that if you promise something and then take it away again, they usually get angry. All the more when it comes to your money. Crypto.com found this out because the unexpected announcement went down like a lead balloon.

I jumped on Reddit where the mood ... was not good. "So you want to be more profitable, let's see if you earn money with fewer customers. I mean much fewer customers," wrote user Kakararatocryptoniano.

The comment by the user Mac-hacker: "Only 20 days (until my 180-day lock is over) and I will liquidate my cro component. Good riddance," summarized the feelings of many. In fact, the markets reacted according to this way of thinking when Cronos from 35 cents crashed to 26 cents at the time of the announcement. It is currently being traded at 28 cents, still almost 15 % lower than at the time of the announcement.

 
  180 revolution  
 The above comments were only the tip of the iceberg.  CEO Kris Marzalek jumped on Twitter to announce a more moderate adaptation of the staking rewards, 8 % for the higher levels and 4 % for the lower levels. 

 Instead of completely eliminating the card-staking yield rates, we offer a more balanced approach: 8 % APY for private members (obsidian, Icy White and Frosted Rose Gold) 4 % APY for Royal Indigo- und Jade Green card holder 
 - Kris |  Crypto.com (@kris)  3. May 2022  

 The cashback sets remain.  And although the announcement was positive, she could not suppress the anger in the community, many of which had lifted the assignment after the first announcement.  The tweets spurred the slight increase in the token mentioned above. 
  why?  
 crypto.com knew that the reaction would be visceral here.  And while their approach to the unveiling of news - a sudden announcement in addition to a lack of transparency to this day - their hands may have been bound. 
 It is a story that is as old as the time, but this is still a fintech startup that only came onto the market in 2015 and apparently grew beyond its possibilities, which requires this. To say it clearly, I think the handling of the company would not have been able to be worse, but the real problems are the bloated expenses to this day. 
 The marketing editions were breathtaking.  According to a report, the brand crypto.com is plastered on all F1 routes  Dollar  Deal last summer.  In addition to this deal, the Grand Prix is officially referred to as Crypto.com Miami Grand Prix this week, while at the Belgian Grand Prix in August they will be the official NFT partner.  You also have a deal with a team in sports - Aston Martin.  Numbers for these agreements have not been published, but you don't need to research much to know that you are expensive. 
 It also goes beyond fast cars.  You are the official sponsor of the FIFA World Cup in Qatar this winter, the largest sporting event in the world.  You have also completed a 700 million dollar deal with the Los Angeles Lakers to rename the legendary Staples Center into Crypto.com Arena-the most valuable name law deal in history. 
 I could go on, but I think they understand what is important. 
  downturn  
 The crypto market broke in addition to the stock market this year.  Geopolitical uncertainty, galloping inflation and the restrictive turn of the FED all contributed to the fact that the S&P 500 had its worst start to a year since 1939, and cryptocurrencies were even more volatile as expected.  Cronos is now 70 % below his all -time high from last November - in the same month in which the sponsorship contract for the Staples Center was concluded. 
 The incredible amount of marketing editions obviously exhausted resources, and the company has found that it is impossible to maintain this as part of its business model.  Therefore it decided to shorten the rewards. 
  future  
 When you dig deeper, the fixed range of cronos means that the premiums can never be continued with the rate to which they have been paid out.  The entire range of maps and the associated premiums were a loss loan.  A strategy that is often used by startups around the world that aims to tempt people to join the app, where customers can then earn money through other streams. 
 But the speed with which these awards have stopped is a shock.  So suddenly they were announced.  There was no roadmap, no instructions for customers and no warning for what could come later. 
 And although the token has broken up by 15 %, this remains one of the largest crypto units on the planet.  As much as it may be annoyed by hardcore fans, Crypto.com has built up an exuberant brand, albeit with a budget that is too aggressive, as well as an extensive product range and an excellent app.  On this basis, you should be able to survive the current storm, and if/when the markets turn up again, you will be well positioned to recover. 
 However, it still does not excuse the way in which you shorten these rewards, which was pretty much the worst thing that the company has experienced since her blatant Superbowl  Inserate  Matt Damon. 
 user of crypto.com, I feel their pain.