Crypto.com has managed to reach five million users in total, a massive milestone in growth. However, the exchange managed to overshadow this milestone by way of its announcement that it will make a 70% cut on the staking rewards one can gain through staking its native token, CRO.
Massive Growth With Goals For More
Crypto.com stands as one of the bigger debit card and crypto exchange providers, and has recently managed to surpass five million total users for the first time in its history. This spectacular growth comes just after three months since the firm had reached three million users.
The firm had seen such accelerated levels of growth ever since it hit a critical mass of one million users on the platform back in September of 2019. Within nine months, the platform had managed to gain triple those numbers in users.
Kris Marszalek, the co-founder, and CEO of Crypto.com, gave a statement about the matter at large. He vowed that his company is planning to continue the aggressive expansion of its user base. Marszalek stated that the platform’s plan is to have 15 million users by 2021’s end, with the long-term goal being to reach 100 million years within the span of five years.
Massive Staking Cut Alongside Growth
However, not all of the five million users on crypto.com are in a festive mood after the milestone. Alongside the positive news, crypto.com announced that it would slash 70% of the staking rewards. This announcement was made just 24 hours before the 5 million user milestone.
What this means, is users that hold 5,000 or more CRO, which is around $690, that stake their holdings for 180 days, are only capable of earning 6% per annum. Prior to the massive price cut, the possible earnings for staked CRO under the same conditions were set at 20%.
Many Questionable Decisions
As one would imagine, not many users are pleased with this, with many a disgruntled user going to Twitter to voice their negative opinions about the matter. “LtcFanboy,” a random twitter user, has claimed to figure out the business model of crypto.com: Make a massive earning cut the moment they make a milestone.
I’ve been noticing everytime @cryptocom reaches an achievement they cut the limits earning by a massive %. That seems to be their modle. @BlockFi has been promoted multiple times by @APompliano ,I think ill move over there for a bit and see how they treat their customers. https://t.co/kMKfzMSMZw
— LtcFanboy (@FanboyLtc) October 14, 2020
The rapid growth of Crypto.com can be primarily attributed to its massive marketing budget. In one marketing campaign alone, the company managed to burn through seven-figure funding. The campaign itself, titled “The Syndicate Anniversary Special,” offered a staggering $2 million in Bitcoin for 25,000 users, doing so at 50% off. Alongside this, a twitter event gave away $120,000 in crypto.