Well well well......
Another day, another dick move made by the Crypto.com. First, there was the MCO-CRO swap fiasco, next with the decrease in CRO flexible earn to 3% because for some reason they feel that it's not sustainable for them where we utilized the flex earn-syndicate strategy, then the 50% reduction of referral fees from 50 USD to 25 USD, and then finally CRO earn rates drop by 300% from 18% to 6% (4% for me because I never staked 10,000 CRO there, 1% for flexible earn) and the exchange staking interest rates from 20% to 6%. The period has finally come for Crypto.com when they realized they offer too many goodies to get more customers in until they realized their plan is somewhat unsustainable and try to drop many bombs on us because we are like leeches which keeps on leeching the blood of CRO tokens. I'll just give my thoughts and some exit strategies that you might want to try if you plan to move your funds out from Crypto.com.
Let's take some positive notes from this. 6% is still an acceptable number if you're deciding whether to put into CDC Earn platform, or the conventional Fixed Deposits. The changes in these rates also means that Crypto.com will become a more sustainable platform due to the introduction of DeFi Swap and Supercharger events. The CRO visa card benefits still remain, current locked rates in Earn and Exchange still remain until the maturity date, so we're still earning the high interests before. I'm still bullish on their visa cards due to their cashbacks, Spotify and Netflix reimbursements, which is also one of the primary reason why Crypto.com is great in this category compared to other banks. Besides, since a lot of people are moving or planning to move their funds out of CDC, the lowered prices would mean staking for the cards will be more affordable for new users.
Now onto the negative notes. I've previously wrote articles about the MCO-CRO swap and the Supercharger, and I said it, time and time again, that I don't trust the platform for my investments to be locked with them because of a lack of transparency in making those sudden changes. I wouldn't mind if they change the rates slowly, maybe from 18% to 15%, to 12% and so on until 6% is achieved, but to go from 18% to 6% in one day shows that they lack a clear plan and direction on how to make their platform sustainable for the long term. What's more, I'm sure everyone have also got an email regarding the latest rates which shows CRO of up to 18% where on the next day, the rate becomes 6%. With more of their focus turned towards DeFi Swap and Supercharger events, Crypto.com has turned from a beginner's easy guide to grow your money with CDC by simply stake and earn interests, into an advanced, highly technical guide to how to earn even more money by staking tons of money to them for the very attractive interest rates in return. For a person who doesn't have much income to invest, you'll find CDC is becoming less user friendly in your plans to achieve financial freedom. For the people who have a ton of capital in their bank account, CDC is definitely the platform for you.
Why CRO price won't come crashing down
Yes, CRO prices will go down as more and more users will not want to put more money in those unattractive earn rates, but my gut tells me that it won't come crashing down fast due to many users are having their funds locked to CDC for very long periods. Some are currently in 1 or 3-month locked CRO earn, some for card staking, some in the DeFi Swap where the users choose to lock up to 4 years for the best rates, and some in the exchange earning daily interests of 20% while the funds are being locked for 6 months. Too bad for those who choose to stake more and refresh their staking term.
Today's current price has reached the strong support line of approximately $0.14. When this support line is broken, I expect the price will drop to maybe around $0.105. It's quite unlikely that it'll go lower because there are many people still using the visa cards for daily purchases, so the use cases is still there unless if they also change the cashback rewards or revoke the spotify and netflix reimbursements for the visa cards. Again, I'm not an expert trader so you decide how much the price is going to go down.
My Exit Strategy
If you're like me who thinks there are other places out there who can earn you better interests than CDC (e.g. Celsius Network), you can start surveying the fees and charges for withdrawing your cryptos to other platforms. According to the latest fees structure, I personally choose Ripple to move my CRO to Celsius due to the fee of just 1 XRP, fast transactions in the Ripple network and the upcoming Spark airdrops announcement to which you can claim free Spark tokens for holding XRP. I plan to withdraw the CRO interests I earned to Ripple every single week to "Dollar-Cost-Average" in withdrawing my funds out. For other token options, NEO seems to not be charging withdrawal fees (showing 0.0 in the fees & limits in the Crypto.com App), so I would say this is the lowest and a get-out-of-jail free card. Other tokens such as LTC, XLM, ALGO and EGLD are notable mentions for being the lower withdrawal fee options out there. Avoid stablecoins if possible as they are charging 3 USD for the witdrawals unless if you think this fee is very minimal. MATIC may be a better option to stablecoins if you plan to withdraw to Celsius and get up to 22.4% interest rate due to a slightly lower withdrawal fee than stablecoins.
Likewise, if you're still bullish on CDC despite of the things that happened lately, there's a small chance that CDC will listen to you and bring up the earn rates slightly like what they did to the minimum CRO staking conditions for the visa cards where they decrease the limits for all the cards from 5,000 CRO to 1,000 CRO for Ruby Red as an example after the MCO-CRO swap announcement. However, I feel more confident in trusting a charismatic person such as Alex Mashinsky (Celsius CEO) than a rather disappointed, poker-faced Kris Marszalek during the AMAs. If you also did your research and wanna join Celsius, you can use my referral link: 1587314a52 so that we both get $20 worth of BTC when you deposit a minimum of just $200 into Celsius.