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CRO Coin Falls 19% After Crypto.com Announces Rewards Cut Down To Cardholders

On Monday, Crypto.com’s Cronos (CRO) slide followed suit with a sharp drop after the crypto exchange said it was reducing some staking and rewards tied to its popular pre-paid Visa cards. 

According to Tradingview.com, the coin dropped by 19% to $.265. On Sunday before the announcement, CRO was trading above $.33 per coin. 

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Crypto.com announced the changes in a blog post:

To ensure long-term sustainability, we are introducing a number of changes to the CRO Card rewards programme, effective 1 June 2022 00:00 UTC.

CRO Card Rewards Cut Down

Next month, the company will reduce the usage rewards on four of the exchange’s card tiers.  The most premium tier, the Obsidian tier, will see a Cronos card reward reduction from 5% to 2%. In addition, the Icy White / Frosted Rose Gold tier reward will be pulled down from 3% to 1%.

The top tier of the company’s card program, Obsidian carries a $400,000 staking requirement and offers up to 8% cashback at retailers.

CRO price trading at $0.27 after company announcement of rewards cut down | Source: CRO/USD price chart from Tradingview.com

According to company policy, there will be a limit on how much a person can earn CRO card rewards for two tiers. For example, the Ruby Steel Card earns are limited to $25 or equivalent in other fiat currencies like Dollars and Euros. While for the Royal Indigo/Jade Green tier, the cap is set at $50.

In Addition, Crypto.com is phasing out CRO staking rewards for cardholders. Cards include Jade Green, Royal Indigo, Frosted Rose Gold, Icy White, and Obsidian. Staking rewards involves coin owners “locking up” or delegating a portion of their crypto holdings to earn more interest on deposits.

While explaining staking rewards, the exchange said;

Cardholders with an active 6-month stake and who staked before 1 May 2022 13:00 UTC will continue to earn CRO Card rewards on spending at the current rate until their 180-day stake expires. Thereafter, the revised rates will apply. Cardholders who stake CRO after their 180-day lock expires will earn card spending rewards as per the schedule.

Cronos Price Performance

Since the start of January 2022, Cronos has been trading lower. The price of CRO was over $0.50 at the beginning of the year, but it has been retreating since then. At one point, CRO was close to sliding below $0.30. Cronos’ price skyrocketed during the NFL Super Bowl. But after that, there hasn’t been any sign of a recovery as the price of CRONOS crashed continuously.

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In the last 24 hours, CRO started the day in green, but after the company announcement price crashed below $0.30. Since then, the coin has lost 19% of its value and reached $0.26 lowest level. 

Featured image from Flickr, chart from Tradingview

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Ethereum 2.0 Becomes The Leading Hodler of Ether With $21.5 Billion in Funds

Presently, the staking contract of Eth2 has become the largest holder of Ethereum. Moreover, it is compliant with ERC-20 standards and leads the other projects using the same tokens.

The blockchain analytics source Nansen carries that the staking contract of Eth2 has exceeded that of WETH (Wrapped Ethereum) and is now the largest single Eher holder.

Furthermore, unlike Eth, wrapped Ether meets the ERC-20 standard, making it the best ETH representation champion amidst decentralized finance projects that employ ERC-20 tokens.

Related Reading | Microsoft To Fight Piracy With Ethereum, Introduces Project Argus

Alex Svanevik, the Nansen CEO, put up his findings on Twitter this Tuesday. According to the available data, the deposit contract of Beacon Chain consists of 6.73 million ETH – roughly valued at $21.5 billion at present rates.

Check who's #1 ETH holder now guys! pic.twitter.com/3isDLkrv7I

— Alex Svanevik ✨ (@ASvanevik) August 16, 2021

While on the other side of the coin, the data by Nansen shows that the contract of Wrapped Ethereum consists of 6.7 million ETH, roughly valued at $21.4 billion. Binance follows with 2.29 million ETH, which is roughly valued at $7.3 billion.

As maintained by CoinMarketCap, the sum of Ether staked and locked on Eth2 now constitutes 5.7% of the circulating supply of Ethereum. Moreover, the Eth2 network has up to 210,000 validators at this time, Beaconcha.in claims.

At this time, the staked Ether on Eth2 are all confined, and users cannot withdraw them from the contract until the impending Ethereum chain merges to join Eth2 and Ethereum networks. At present, the anticipated chain integration will happen within the first six months of 2022.

Ethereum 2.0 Occupies Third Position In POS Network

As per Staking Rewards, the top 3 proof-of-stake network is Eth2 through staked capitalization. It is therefore positioned behind Solana’s $27.5 billion and Cardona’s $49 billion.

The news went live a short time after the major Ethereum’s breakthrough for the Eth2 roadmap and the successful deployment of the network upgrades in London on the 5th of August.

Related Reading | Total Cryptocurrency Market Cap Value Surges Across $1.9 Trillion Setting A New Record

This hard fork introduced the greatly expected Improvement Proposal 1559 of Ethereum. This proposal introduces the accurate transaction price, which is burned from the fees generated on the network.

According to Ultrasound.Money, users have destroyed up to 54,916 ETH or $175 million through transaction fees in the 12 days following the London fork.

At the current burn rate involving 3.28 ETH, users might destroy above 140,000 ETH every month if the network keeps operating optimally.

 

At the time of writing, ETH has lost at least 3.94% of its price in the last 24 hours | Source: ETHUSD on TradingView.com
Featured image from Pixabay, chart from TradingView.com