The Cronos crypto token CRO (previously often known as Crypto.com Coin) has taken a nosedive this week. Sadly for long-term holders of CRO, some huge bulletins got here from the parents who run Crypto.com. And people bulletins acted like a cinderblock tied to the value of the Cronos crypto token.

To be honest, Cronos was already backsliding price-wise earlier than the announcement. However now it’s down roughly 40% for the reason that starting of April. So what triggered this huge drop? It was basically some huge cuts to the motivation applications that got here with Cronos crypto.

Once we first wrote about CRO final 12 months, we had been bullish on it. Crypto.com had simply bought the naming proper to the world the Los Angeles Lakers play at. Matt Damon was throughout TV in commercials for the change. And CRO was within the midst of a really bullish chart sample.

There was so much to love about CRO on the time. Customers might earn annual curiosity of as much as 10-12% on their CRO crypto by staking them on both the Crypto.com change app or Crypto.com’s steel Visa Card.

However so much has occurred since we final coated this token…

Why Cronos Crypto Is Falling

Crypto.com set out with a concentrate on two issues. The Crypto.com blockchain was developed to assist pace up international adoption of crypto investing. The opposite was to safeguarding person knowledge and privateness. However the jury’s nonetheless out on whether or not it’s helped accomplish both of those.

This previous January, crypto.com admitted it was hacked to the tune of $35 million. Moreover, it nonetheless has but to crack the top-10 record of hottest exchanges. And it solely accounts for a market share of 1.69% of crypto buying and selling quantity finally test.

None of that’s doing any favors for the value of Cronos crypto. However the actual dagger got here from the announcement that staking rewards can be slashed. An announcement was made that as of June 1, CRO staking rewards would now not be provided to some holders.

On prime of this, a press launch was despatched out stating:

Cardholders with an energetic 6-month stake and who staked earlier than 1 Might 2022 13:00 UTC will proceed to earn CRO Card rewards on spending on the present charge till their 180-day stake expires. Thereafter, the revised charges will apply.

The reasoning behind the adjustments was that was being completed in an effort to keep up the long-term sustainability of Cronos crypto. However that didn’t breed a lot confidence. That is akin to a inventory chopping its dividend. Or a bond being downgraded. Dialing again these advantages is a surefire technique to make the bulls flip bearish. And that’s simply what occurred.

Is the Finish Close to for CRO?

Once we first bought wind of the crypto.com press launch, we thought thus might be the loss of life knell for Cronos crypto. Positive the reductions obtained from utilizing it on its native change had been good, however would that actually be sufficient to maintain it? That was questionable at greatest.

We had been additionally beginning to suspect shelling out $700 million for the naming rights of a basketball area won’t have been the perfect concept. Identical goes for that $100 million in advertising and marketing spends. It actually was beginning to really feel just like the dot-com bubble once more. So is Crypto.com on the same trajectory because the ill-fated Pets.com? Possibly… However because of all of the uproar, it’s destiny isn’t sealed fairly but.

Twitter and Reddit feeds reached a fever pitch concerning the curbing of the Cronos crypto staking program. And a big selloff naturally adopted. Then Crypto.com CEO Kris Marszalek took to social media to try to salvage the state of affairs.

We’ve been partaking with the neighborhood all week about card rewards, and we’re making just a few extra updates primarily based in your suggestions.

The method has been removed from superb, however it’s essential to take your suggestions under consideration, and ship a pretty but balanced providing.

— Kris | Crypto.com (@kris) May 5, 2022

All that backlash apparently labored to some extent. The change has since backtracked on its choice to completely finish the staking rewards program. And Marszalek has since introduced that staking rewards as much as 8% will likely be provided to its bank card customers. Whether or not that’s sufficient to avoid wasting the day has but to be seen.

Plenty of Cronos crypto stakers are nonetheless lower than happy with the choice. Afterall, it’s not as helpful because the outdated program. However it’s clearly extra sustainable. However for the way lengthy stays the million-dollar query.

The Backside Line on Cronos Crypto

 Is Cronos crypto promoting at a reduction? Or is poised for much more dips? In the interim, we’re altering our bullish sentiment. That being mentioned, we famous final 12 months that the CRO advantages program was very aggressive. It appeared virtually too good to be true. And apparently, we had been on to one thing there.

In the interim, Cronos crypto doesn’t look like a really sound funding. Like we famous above, an organization chopping its dividend sends a really bearish message. And a crypto having its staking program eliminated does the identical. Although some semblance of that program was reinstated, the flip-flopping from administration doesn’t instill a lot confidence both. So we’re going to sit down again and wait to see what this token does within the coming months earlier than having the ability to advocate it as a worthwhile funding.