Crypto.com 'sCRO coin dropped Monday after the company announced changes to its Visa-enabled pre-paid cards.- Card rewards will be reduced for some tiers and it will phase out CRO staking rewards.
The cryptocurrency associated with Crypto.com slid sharply Monday after the crypto exchange said it's reducing some staking and rewards tied to its popular pre-paid Visa cards.
The CRO coin fell by 17% to $0.2941, according to CoinGecko.com. It was trading above $0.33 on Sunday when the company in a blog post outlined changes to its card system.
"To ensure long-term sustainability, we are introducing a number of changes to the CRO Card rewards programme," effective June 1, it said in the post. Crypto.com said its program was available in 40 countries.
The Singapore-headquartered exchange said among the changes that go into effect next month, usage rewards on four of its card tiers will be reduced. For the premium Obsidian tier, the CRO card reward was cut down to 2% from 5%, and the Icy White / Frosted Rose Gold tier reward was pulled down to 1% from 3%.
The Obsidian card is considered the company's top-tier card as it carries a $400,000 staking requirement and allows users to earn up to 8% cash back at retailers.
The company said for two tiers, there will be a maximum monthly cap on how much CRO card rewards can be earned. The Ruby Steel Card rewards will be limited at $25, or the equivalent amount in other fiat currencies. The cap was set at $50 for the Royal Indigo/Jade Green tier.
The company also said it's phasing out CRO staking rewards for its Jade Green, Royal Indigo, Frosted Rose Gold, Icy White, and Obsidian cardholders. Under the staking process, coin owners "lock up" or delegate a portion of their crypto holdings to earn rewards.
Cardholders with an active six-month stake and who staked before May 1 will continue to earn spending rewards at the current rate until their 180-day stake expires. Cardholders who stake CRO after the lock period expires will earn card spending rewards.
The company's name in December was emblazoned on the home of the LA Lakers and the LA Kings, with Crypto.com Arena replacing Staples Center.