If you have an account with crypto.com, you have no doubt seen their "Supercharger", in which you can stake their native token CRO in order to earn interest in whichever coin is being supercharged.
For 45 days, you can stake a minimum of 100 CRO for as long as you like. There no fees to stake or withdraw, and you can withdraw at any time. Crypto.com claims that you will be paid interest based on the quantity and length of time that you stake. After that 45 day charging period comes a "reward period", where you are paid out the total interest that you earned daily over the next 45 days.
On the surface, this is an intriguing way to earn new coins. Especially during the most recent ETH supercharger, it was a chance to accumulate blue-chip crypto simply by locking away your CRO.
However; it has long been rumored on forums that the advertised % of APY for these supercharger events is egregiously misrepresented. For the ETH supercharger, crypto.com currently states that it offered returns of "up to 36.23% APY". The idea of staking CRO to earn over 35% APY in a superior coin like ETH certainly sounds too good to be true. But they did say "up to", and even a return of 10% would be incredible. So I decided to test things out.
I was in the process of DCAing for the crypto.com debit card while the ETH supercharger was in its charging phase, so I had some CRO sitting and doing nothing and figured I might as well give it a shot.
I put 441.56 CRO in the supercharger for exactly one week. While the value of CRO obviously fluctuates, my most conservative estimate the approximate value at that time was $309 CAD (1 CRO = $0.70 CAD). If I were to get the maximum advertised interest rate of 36.23% APY, I would have earned $2.15 worth of ETH ($309*0.3623*1/52) or approximately 0.00054 ETH. Nothing crazy, but a great return for a week that I would otherwise have earned nothing on.
On Jan 6, the rewards acceptance period began and I was informed of my reward allocation. I was awarded 0.00004365 ETH.
Thus, the actual APY awarded was 2.9%.
A return of 2.9% on my investment really isn't terrible. However, I could have staked that CRO in the crypto.com DeFi wallet and earned ~12.6% APY in CRO, which would have been much more preferable.
First things first, let me just say that I am a big fan of what crypto.com is doing. I think they have some really cool offerings like their VISA debit card, and their marketing efforts aimed at mass adoption have been unparalleled.
That being said, let's call the Supercharger event what it is: complete garbage. I won't go as far as calling it a "scam" but claiming rates of "up to 36.34%" while actually offering rates of less than 3% is bordering on false advertising.
Mass adoption of crypto is still being hindered by portrayals of sketchy practices and rug pulls. crypto.com's efforts to appeal to broader populations of investors will no doubt be greatly held back by stupid events like this. Imagine a first-time investor who was excited by the opportunity to earn a high yield of ETH by staking their CRO and then received less than 1/12 of the number that was advertised. That could easily be the last time they invested in crypto.
One of crypto.com's better offerings is their VISA debit card, where you can earn up to 8% cashback in CRO for ALL of your purchases. If you use my referral code of tnpxg4d2ha when staking for the Ruby card, we will each earn a FREE $25 USD in CRO.
If you're Canadian and interested in investing in BTC/ETH, Shakepay offers FREE BTC every day when you sign up with a referral code. I would greatly appreciate it if you would use my referral link (https://shakepay.me/r/GS0YXA7), as this article has taken a lot of time and research to compile. Additionally, if you sign up with my link, you will get $30 for free when you buy $100CAD or more of crypto. I would also get $30.
Lastly, if you would like to earn interest on your crypto, I recommend Celsius where you can earn interest (6.2% and 5.35% for BTC and ETH respectively). If you also use my Celsius referral code (1596856e3d), we will both get $50USD of BTC when you transfer $400 or more to Celsius. Combined with the Shakepay reward, that's almost $94CAD of free rewards!
Please remember that this is not financial advice, always do your own research!