Facing Backlash, Crypto.com Bends to Criticisms
This marks the second time the company has made revisions to the highly contentious plan it announced last week.
Key Takeaways
- The CEO of Crypto.com has announced revisions to the company's controversial plan to cut cashback and staking rewards.
- Today marks the second time that the company has announced updates to the plan.
- Holders of Crypto.com's Visa-backed cards pushed back against the company's moves.
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Days after announcing that it would be slashing its cashback benefits and ending staking rewards, Crypto.com has once again shifted course on its new policy changes in the face of public criticism.
Backlash to Rewards Slash
Crypto.com is backtracking once again.
Less than a week after announcing substantial cuts to its cashback and staking rewards programs, Crypto.com is once again adjusting its course. Chief executive officer Kris Marszalek tweeted today a new set of rates and conditions more favorable to users than last week’s cuts.
He wrote that the Ruby Steel card’s cashback rewards would increase from 0.5 to 1% and that the Jade & Indigo’s rewards would increase from 1.5 to 2%. Moreover, customers can continue to earn current staking rewards on their cards for an additional six months if they lock their tokens before the beginning of June. The company will also waive the $50 card upgrade fee.
On Apr. 30, Crypto.com announced that it would be significantly slashing its cashback rewards on its pre-paid Visa cards from anywhere between 1 to 8% to between 0 and 2% and eliminating staking rewards altogether. Following intense backlash from customers, Marszalek backtracked the next day, writing that holders of the Obsidian, Icy White, and Frosted Rose Gold would be eligible for 8% returns, while Royal Indigo and Jade green card holders could earn 4%.
The CEO said that “the process has been far from ideal, but it’s important to take your feedback into account, and deliver an attractive yet balanced offering.”
Reactions have been mixed. Responding to the CEO today, one Twitter user “MKYroot” wrote:
“I currently hold the ruby red card because I’m not rich and can’t afford a higher level. Anyways, getting knocked down to 1% in CRO is just not worth it anymore. I love CRO and will stick with it long term. However, I think it’s time to switch my card rewards to another platform.”
Another user, “Bolster,” seemed pleased with the updates,
“I sold a-lot of my CRO over your recent announcement and had a long term mindset for continual upgrade. With 1 tweet you changed my 10 year plan. However, it take a strong leader to hold their hands up and say we got it wrong. My Jade green and I will stay. ICY is already gone.”
The CRO token, native to Crypto.com’s Cronos blockchain, is down almost 5% today while broader market has endured losses as well.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and several other cryptocurrencies.
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