Crypto.com covertly drops their staking rates as the exchange nears 10 million users 

From 4 April 2022 Crypto.com will be dropping their staking rates by 50% for all Crypto Earn holdings over $30,000. 

Whilst it is difficult to estimate exactly how many users will be affected, it seems to form part of Crypto.com’s long-term strategy. Previously the exchange slashed rates upon reaching 5 million users and have again reduced rates, now that they’ve hit 10 million users.  

The company’s large marketing budget is likely a major contributor to Crypto.com’s rapid growth, with the company recently blowing $6.5 million for a 30-second Superbowl ad slot. Which has clearly worked for the exchange that’s 24-hour trading volume is currently over $2 billion, which is a monumental increase from the 24-hour trading volume of $33 million seen in October 2020.  

With such a sharp increase in users and with an ambitious goal of taking cryptocurrency to the mainstream market, and thus attracting 100 million users by 2025. It’s clear that the company’s focus is around the quantity of users, and not the quality. Which is further proven by the fact that the rate changes only affect users, who’s value of total coins, in earn, exceeds the $30,000 quota. 

Assets allocated to flexible terms will not count toward the fixed-term tier allocation quota. The tiers are broken down as follows: 

• Full rates are applicable to a quota of $30,000 allocated to fixed terms 
• Fixed-term allocations that exceed $30,000 will receive 0.5x of the full rewards rate 

However Crypto.com Private users will be pleased to know that they are still entitled to an additional 2% p.a. on fixed-term allocations (paid in CRO). 

The new tiered rates will only affect new Earn contracts, so any fixed term allocations that you have ending beyond 4 April 2022 will continue to accrue interest on the full amount staked. However, the value of those allocations will count towards the quota of $30,000. 

In addition to the new tiers, there will also be rate changes for select tokens, including higher reward rates for ETH, DOT, and MATIC, for select terms. 

For a full view of the changes taking place, refer to the table below.