• Crypto.com will reduce the rewards it offers to Visa (NYSE) cardholders.
• It was announced on May 1 that the average reward would drop to 69.5%.
• This announcement had an adverse effect on CRO’s price.

Crypto.com decided to lower rewards for Visa cardholders. This decision is being questioned by many crypto-fans.

Announcement was made May 1. It stated that reward levels would drop by an average 69.5% for Midnight Blue cardholders and even by 100% in the case of the lowest-tier Midnight Blue cardholders. The reason for these changes was said to be to “ensure long-term sustainability.” For the highest tier card, rewards will drop from 8% to 5%.

The good news is that cardholders who have an active account prior to May 1 won’t see any reward changes once their current term ends.

Some card tiers have limitations, as well as rewards changes. For example, the Ruby Steel card will be limited to $25 per month, while Jade Green cards have a $50 limit each month.

The current stakers are understandably bothered by these new changes, and one well known staker, Devchart, went as far as to call the decision “the dumbest move of the day.”

The CEO of Crypto.com, Kris Marszalek, responded to the backlash in a Tweet where he said that “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% for Royal Indigo and Jade Green card holders.”

Price of CRO dropped by $0.36 to $0.28 at the close of May 1st due to the announcement. Over the last seven days,the coin’s price was a jaw dropping 30% price decrease, according to CoinGecko.

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