Table of Contents
Introduction
In the past months and years if you met someone who had a strange looking card that was not issued by a traditional bank and was associated with cryptocurrencies most likely it was a Visa card issued by crypto.com
A luxurious-looking metal card that often attracted attention. Especially due to its design in beautiful color combinations such as Ruby red or Icy white. It was also the most famous combination of Visa payment card and cryptocurrencies. Its undeniable advantage was the benefits it offered its holders. But times have changed. On the first of May, a piece of very unpleasant news was announced to all holders and supporters of this company….
What used to be the benefits of using the Crypto.com metal card?
Previously you invested some amount, bought a crypto coin called Cronos (CRO), and got from 2% to 8% cashback. On almost everything. In addition to that, you got Spotify, Netflix, or Airplane lounges for free. And that’s not the end of it. For all higher card tiers, except the lowest, you get up to a 12% staking reward. I know, it sounds amazing. And it was awesome, too.
I had my metal crypto.com card for about a year. I pay for everything with it and got a lot in cashback too. To maximize your earnings, it was advisable to move all serious cashback into the DeFi wallet with a mostly more than 12% APY.
Here in the picture, you can see how the rewards have been so far.
Crypto.com Visa Cards Update
Unfortunately, this change is not just a small change that won’t affect anyone much.
As you can see the changes are more than noticeable. Plus from now on there is also a limited maximum amount of rewards you can earn per month. A lot of investors are outraged. And you can see it in the price of crypto itself. The price of CRO dropped more than 20% within hours of the announcement, and it’s still dropping.
And the drop is expected to be even bigger in 28 days since that’s the unbounding period on the DeFi wallet. Also, a lot of investors still have their CROs locked up on the card. So there’s no way to predict when, if ever, the price trend will reverse.
Many community members reacted to this news. Some have cut up their cards in anger. Others threw it away or set it on fire. Others simply sold the CRO they were holding. All of this can be found below the Twitter post announcing the news.
No wonder, when crypto.com basically canceled every benefit.
What are the possible reasons for this radical change?
I cannot say how the financial situation of this company stands. But I would like to share what most investors generally think is the reason.
I’m sure you’ve noticed an advertisement for Crypto.com and their cards somewhere, anywhere lately. That’s because this company has clearly spent a lot of money to appear at every sporting event, on TV, on the internet, to be omnipresent. For example, the naming rights to one of the largest stadiums in Los Angeles - Now named Crypto.com Arena.
It was also clear that such high rates could not last forever. Not with such an onslaught of new users. But unfortunately, this has disappointed many users. And for many, it is no longer worthwhile - including me. And I feel sorry for those who have recently purchased this card. They signed up to lock up their money for 180 days. Money that a week ago was worth $4000 and now is worth only $2500. And there’s nothing they can do about it. Just pray it gets better someday and they will get their money back.
Is it the and of Crypto.com and is their card still worth it?
It depends on each investor individually. Before that, we can agree that it was indeed profitable. But to invest 4000 USD, now in a very unstable currency, and get 1.5% cashback, again in a very unstable cryptocurrency? I wouldn’t do it anymore.
Even though a large majority will now leave this company with their money even though they are at a loss. There are still those who believe in its future. And they still want to stay using that visa card.
But it will probably take a long time to get out of this. And it showed us all how dangerous it is to invest in cryptocurrencies. Even for myself. Who went in at $0.5. And I can’t take that big of a loss.
