Crypto.com lowered staking interest rates from 20% to 6% per annum

The popular crypto exchange and debit card issuer Crypto.com updated their interesting rates. Users on their platform could earn an interest rate up to 18% p.a. via the app and up to 20% via the exchange. This was a big unique selling point to attract a lot of users. A Reddit user noticed three days ago that all the staking rewards were drastically lowered and a day later we all received a notification about the changes.

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

Crypto.com surpassed the 5 million milestone some days ago and their goal is to surpass the 15 million users by 2021. Crypto.com CEO Kris Marszalek states that the recent reductions is to make the platform more sustainable in the future. They have now over 600 employees and they have to focus on becoming profitable.

Updated CRO Staking Rates

Initially the staking rates were reduced to 1% (flexible), 2% (1-month), 4% (3-month) and 6% (half year). Today they updated their rates again, because of all the complaints from the community. You can now earn up to 10% p.a.

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

The response from the community is divided. Some are happy, others are thinking it’s a marketing strategy.

One user on Twitter reacted:

As this happened at least 2x within a short period already, it makes me think this has been your strategy all along – changing to ridiculously unfair rates then a day later increasing it to an “acceptable” level to appear you’re “listening.” Doesn’t really inspire confidence.

And labelling those very low rates “as old” without mentioning the original terms – – > quite misleading

What do you think?