Crypto.com announced Sunday that its Crypto.com Visa debit cards will soon be less enticing. Starting June 1, 2022, the suite of debit cards will earn significantly lower rewards, and rewards for the Ruby Steel and the Royal Indigo/Jade Green cards will now have a monthly rewards cap.
Starting June 1, the Ruby Steel and Royal Indigo/Jade Green cards will have a monthly rewards cap of $25 and $50 respectively. The limits will reset on the first of every calendar month. The card rewards will also be dramatically lowered.
Initially, the company was also planning to remove CRO staking rewards completely, further limiting the card's utility. However, following community backlash, crypto.com CEO Kris Marszalek took to Twitter to address the changes.
"Instead of eliminating card staking earn rates completely, we will offer a more balanced approach: 8% APY for Private Members (Obsidian, Icy White, and Frosted Rose Gold) 4% APY for Royal Indigo and Jade Green card holders," he wrote on Twitter.
According to the company's blog post, the changes are being implemented "to ensure long-term sustainability." Further, cardholders who began staking before May 1 will continue to earn the current rewards until their 180-day staking period expires. Following that period, cardholders will earn the updated card rewards and new CRO staking APY.
Here are the new CRO cash back rates:
CRO cash back while not staking
CRO cash back while staking
Royal Indigo/Jade Green
Icy White / Frosted Rose Gold
Keep in mind, to reach the advanced card tiers, cardholders will need to stake a specific number of CRO tokens for 180 days:
Based on these requirements and the new changes, the cards hardly seem worth it. Between the monthly rewards cap of $25 and $50, the decreased CRO cash back, lower staking APY, and $400 to $4,000 USD worth of CRO staking requirement, the entry-level Ruby Steel and Royal Indigo/Jade Green cards are less of an option for a lucrative cryptocurrency card.
And while the higher card tiers don't have a monthly limit to the number of rewards they can earn, the staking requirement of $40,000 to $400,000 USD in CRO doesn't seem feasible for prospective cardholders. Needing to spend $400,000 USD to qualify for the Obsidian card tier to earn 2% or 5% cash back in CRO just isn't a financially sound decision.
According to Coin Market Cap, the price of CRO dropped from .35 cents on Sunday to .26 cents on Tuesday. It rallied slightly to .30 cents at the time of writing.
Understandably, many cardholders are upset by the news. Many took to Reddit to disparage the company, with many CRO holders purportedly planning to unstake their coins and sell. Aside from the rewards, the card's perks will not be changed.