Cronos (CRO-USD), a cryptocurrency formerly known as Crypto.com Coin, is sliding almost 17% today. Sparking today’s retreat in the Cronos crypto is Crypto.com’s decision, announced yesterday, to slash the rewards given to Cronos’ users.
In the future, users of the cryptocurrency will only get bonuses of 0%-2%, based on the tier of Cronos that they are using.
Crypto.com explained that “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.”
What Is Happening With the Cronos Crypto
Additionally, Crypto.com stated that, starting on June 1, “CRO staking rewards will no longer be offered” to the holders of some stakes. The staking rewards of most tiers will be eliminated on June 1 or at the end of 6-month “staking periods.” However, the owners of Cronos will continue to receive 100% compensation for their payments to certain subscription services, including those provided by Netflix (NASDAQ:NFLX) and Spotify (NYSE:SPOT). Cronos owners’ Amazon Prime fees will also be reimbursed.
According to Crypto.com, the changes announced yesterday will “ensure [the] long-term sustainability of Cronos.”
Over the last month, Cronos has tumbled about 40%. So far this year, it has sunk about 50%.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.