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Dark Clouds Around Crypto.com After CRO Rate Cut

The Crypto.com (CRO) project has made large cuts to the interest rates for staking on the platform, with the motivation of making it sustainable, according to a tweet from October 14. However, the manner in which these cuts were introduced has sparked criticism from the community.

  • Crypto.com drastically reduced one of its most attractive features, its high-interest rate for staking by 14%, from 20% to 6%
  • CEO Kris Marszalek said that the incentive reduction was necessary since it would make growth sustainable by balancing it with profitability
  • The project recently reached the 5 million user milestone, growing 5x in the last year; this was partly due to the high interest rates that users could leverage, up to 20% on the exchange
  • The initial interest rate cut reduced staking rewards to 1% (flexible), 2% (1-month), 4% (3-month) and 6% (6 months)
  • These interest rate cuts were criticized by the community, both for the rates and the short notice on which it was introduced; following this, the team updated the rates the following day on October 15
  • While the new rates were more or less double that of the previous figures, some in the community members have called this a disingenuous marketing strategy, saying that the new interest rates were planned all along
  • The community’s disapproval centers around the idea that Crypto.com is deliberately introducing unfair rates and then attempting to win favor by “listening to the customers”
  • While a sizable portion of the community has voiced their concern, others have agreed with the interest rate cut, saying that it is indeed unsustainable
  • The CRO token has dropped 26% since the original announcement and is currently priced at $0.109
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