Crypto.com SLASHES Interest On Its Crypto Earn Program By Introducing A Ridiculous 3,000 USD Tier
You're officially a whale now if you have more than 3,000 USD in crypto.
Crypto.com (CDC) announced today that it will be revising its Crypto Earn rates by introducing a new tier into the program. This is not the first time CDC does this.
In fact, it most recently did this only one month ago (on the 26th of March), when it introduced a new tier for those with more than 30,000 USD in Crypto Earn — allocating them no more than 0.5x of the base interest rate.
The new tier, however, is far more aggressive.
Now, any user with more than 3,000 USD in Crypto Earn will make only 0.5x of the base interest. Moreover, users with more than 30,000 USD locked will earn no more than 0.3x of tier two (with the 0.5x multiplier = so 0.15x). Here is a handy example to illustrate the changes:
The base interest rate on a 1 month BTC deposit is currently 3%.
This means that users with more than 3,000 USD staked in Crypto Earn will now accrue only 1.5% interest, while those with more than 30,000 USD will accrue 0.45%.
This means that if a user had 3,000 USD in BTC (0.077 at the time of writing), they’d only earn 3.75 USD/mo (or 0.000096 BTC/mo) from their investments.
Is that a lot of money? Absolutely not.
Why? Because 3,000 USD is not a lot of money and capping Crypto Earn rates to 0.5x at the 3,000 USD mark is (frankly) ludicrous. I hope they don’t like Starbucks much, because it will cost them more than the 3.75 USD they made.
Some users have gone as far as suggest that the company may be having liquidity issues. Personally, though, I don’t think CDC has liquidity issues.
If they did, lowering interest rates this aggressively would be the last thing they’d do as it would mean too much capital leaving the platform. In other words, they’d have withdrawal orders that they’d have to fulfill and would be unable to.
What’s more likely is that CDC is finding it unable to invest its users’ crypto and generate enough revenue/interest from it. This is, of course, still pretty bad and shows that the company may be lacking in basic fundamentals as it scales ups.
What’s going to happen next year when crypto adoption inevitably increases?
CDC will have even more crypto and they’re likely to find that they will have to reduce rates again unless. they come out with a better investment strategy for Crypto Earn.
I’ve moved most of my crypto from CDC to Midas.Investments because, while they too plan to reduce interest rates next month (as shown below), they still have much higher rates than anything offered by CDC.