Crypto.com has just announced a massive reduction in reward rates on Crypto Earn. The new rates are effective immediately.
This comes hot on the heels of a significant overhaul of Crypto.com Visa cards, where they have reduced the reward rate on credit card spending and imposed a monthly cap on the prize earned.
For the baptized, Crypto income A product that earns rewards for term deposits (similar to interest) in multiple digital currencies, including stablecoins pegged to Fiat. It has become more valuable than their prepaid cards. While this change will not affect you if you only use Crypto.com’s Visa card, it is noticeable as part of the larger picture of the change in the financial landscape.
Revised rates for selection Stablecoins
Effective immediately, Crypto Earn has reduced the new deposit earnings rate for many popular stablecoins: TGBP, TAUD, TCAD, TUSD, and USDP.
Going forward, these stablecoins have had the highest rates Decreased to 3% annually.
My graduate Huge Decreased from just a few months ago, when the 3-month TCAD deposit for Royal Indigo / Z Green members had an annual rate of 12%. This was followed by a decline of 8%, a rather calm change that was overshadowed by changes in card rewards and CRO stacking.
(I will only focus on 3-month deposit rates, the longest-term and highest rates available.)
Instead of different rates for each card level, the new rates are based on your 6-month locked CRO share price with a simplified structure. If your lockup value is US $ 400 or less (equivalent to the purchase price of Ruby Steel) you will earn 2% on stablecoin deposits, or if your lockup value is US $ 4,000 or more (equivalent to Royal Indigo / Jade) green purchase price).
However, Crypto Earn has complicated interest rates by throttling rewards in a larger balance:
- Tier 1: At your first US $ 3,000 cryptocurrency (across all digital currencies), you will earn the full rate (3% for stablecoin)
- Tier 2: On your next US $ 27,000 Crypto Earn, you will earn 0.5x of the Tier 1 rate (1.5% on stablecoins)
- Tier 3: Earn over US $ 30,000 on any other asset in Crypto, you will earn 0.3x of Tier 2 rate or 0.15x of Tier 1 rate (0.45% in stablecoins).
If you ask me, these layers based on your balance is a huge discouragement from using Crypto Earn. When they were first introduced, the Tier 1 quota stood at US $ 30,000, exceeding 0.5x.
Now, however, the same rate reduction starts at 10% of that balance size, a dramatically lower level that anyone using the platform would easily cross. Anyone who deposits US $ 30,000 in CryptoArne Stablecoin, you will earn one Annual effective rate of 1.65% On the total balance.
Existing deposits will continue to earn at the old rate until they expire. In addition, Crypto.com Private Members (IC White / Frosted Rose Gold and Obsidian Tier) will continue to earn an additional 2% on the Crypto Earn balance in any size and in any currency (excluding CRO) provided in the CRO.
For other cryptocurrency tokens, including Bitcoin and Etherium, Crypto Earn will continue to pay the same interest rate on your stacked balance. These vary by currency, with some altcoins still in double digits.
In the meantime, many Flash-in-the-Pan Altcoins have been delisted from CryptoEarn for new deposits, and active flexible-term deposits will be returned to your wallet tomorrow.
Greater economic impact
This rapid sequence of spontaneous changes comes in the wake of industry-wide crypto sales in the wake of the global economic downturn.
Usually, when inflation is high, the government To raise To encourage savings on interest rate borrowing and to tighten money supply. But Crypto.com is Reduce Rate them instead.
Remember that Crypto.com does not act like a central bank – they act like a profit-oriented corporation, which they are. They have no control over the tokenmix (i.e. money supply) of any currency they support (except their own proprietary CRO). Instead, these custodial assets represent liability for the company, including the balances and rewards that must be paid to their customers.
At the peak of economic uncertainty, it is not surprising to see defense agencies. Even crypto is not immune, as the industry has become embroiled in traditional financial markets and investment practices during the recent bull race.
It’s a profound reminder that cryptocurrency has an exciting place in our future, it works fundamentally differently from our long-term financial instruments and institutions – for better or for worse.
Therefore, I would like to see these shockwaves as signs of broader market power beyond crypto. I don’t see it as a complaint of blockchain technology; Rather, it is a verification of the fact that financial opportunities in space are not always aligned with its technological fundamentals.
Will I continue to use Crypto.com?
I still see Crypto.com in a turbulent place among the more stable, enduring major players, with an appetite for legitimacy and mass-market acceptance. Although I think there is wisdom in diversifying across different platforms, I would say that the risk of an opponent going under or exiting Crypto.com scamming is lower than that of its competitors.
In addition, TrueCAD (TCAD) is a supporter of TrustToken and its sibling token supporter, one of the more reliable stablecoin issuers. As they fully parallel their stable coins, Fiat eliminates the risk of TCAD depreciation from the Canadian dollar – in contrast to the disruptive Tether token, whose algorithms have inflated its supply beyond sustainability, causing it to depreciate against the US dollar over time.
However, as Crypto.com’s rewards decrease and traditional banking institutions increase their rates, you actually Get higher guaranteed rates with Fiat, Even in the most conservative investment vehicles. For example, EQ Bank is offering a savings account rate of 1.65% with a flexible withdrawal, which is equivalent to an effective rate of US $ 30,000 in cryptocurrency over a 3-month period. They offer a 1-year GIC at an annual rate of 4%, which is a wise option if you don’t need immediate liquidity.
For a crypto platform and the risks associated with crypto assets, however thin, it is not the most valuable for a razor-thin financial advantage.
Although my use and interest in cryptocurrency will continue, it is from a long-term technical point of view. Now is not the time to confuse with the strategy of increasing fiat-pegged wealth – a reality that is determined entirely by numbers.
Conclusion
Crypto.com has squandered the rewards offered as interest on Crypto Earn deposits. The changes are serious enough to inspire me to look for other ways to increase my wealth and to refocus on other reasons I became interested in cryptocurrency and blockchain technology.
The last time Crypto.com reduced their rewards, they were partly behind some changes due to widespread outrage in the community. I don’t expect this to happen this time, though, as these particular changes seem to be representative of the first and foremost systemic economic factors.
I’m not sure if the changes are being made without any prior warning, the continuation of continued devaluation, or the high rate of dishonest marketing that has been strongly throttle before it becomes valuable. Still, I am optimistic about the future of Crypto.com, despite the clear indication that their products will not be profitable for me as a consumer in the upcoming bear market.
