Credit-card lender and wallet provider Crypto.com has cut off 70% in staking rewards for its CRO token. The announcement comes after the crypto exchange reached a milestone of 5 million users.
Firstly, CRO staking rate dropped from 20% to 6% for both the Crypto.com app and exchange. Also, CRO earns rate per annum went down to 4% p.a., 2% p.a., and 1% p.a. in terms of 3-month, 1-month, and flexible terms, respectively. Similarly, CRO soft staking rate was cut to 1% p.a regardless of the amount of CRO staked.
Crypto.com co-founder and CEO Kris Marszalek explained that they are working on balancing high growth with becoming profitable, hence the recent reductions.
5m users 🙏
We grew 5x in the last 12 months.
Shooting for another 3x next year.
Team size at 600+ now.We are working on balancing high growth with becoming profitable, hence recent reductions in incentives to make it sustainable. https://t.co/hQcizHNsd6
— Kris | Crypto.com (@Kris_HK) October 14, 2020
Users with 5,000 or more CRO (approx. $690) staked for 180 days can now only earn 6% per annum. Those that staked 10,000 or more before October 13 will have the same rate (20%) until the staking period has been completed. After the 180 days are over, staking rewards will be fixed at 6%.
However, the crypto exchange has made some changes to the reductions after getting feedback from its clients though the rewards remain lower.
We heard the community feedback and updated #CRO staking rates:
1%➡️2% Flexible
2%➡️4% 1 Month
4%➡️6% 3 Month
6%➡️10% 6 Month✅Longer notice will be given for important changes in the future.
✅We’ll host an #AMA w/ @Kris_HK 21 Oct @ 3pm HKT
More: https://t.co/wzQL7YNeLN pic.twitter.com/Keqa0aPSWG
— Crypto.com (@cryptocom) October 15, 2020
Launched in November 2019, Crypto.com exchange has grown from 1 million users to over 5 million in less than a year. Adding on, the company’s long term strategic goal is to reach 100 million users in the exchange’s ecosystem within 5 years.
Marszalek further went on to elaborate that:
We will continue aggressively building against our public roadmap, with the aim of tripling our user base to 15m by the end of 2021.
Prior to the above, Crypto.com hosted a marketing campaign titled “The Syndicate Anniversary Special”. During the campaign, 25,000 users were offered 2 million worth of BTC at 50% off. While an additional $120,000 was given away in a Twitter event.
Read Also: Crypto.com Launches DeFi Swap Platform
