Is Crypto.com (CRO) Dead?

By Bfab | Good vibes | 25 Jul 2022

Crypto.com announced a new update on July 23:

Existing Jade Green, Royal Indigo, and Ruby Steel Crypto.com Visa Card users who activated their Card before 23 July 2022, 15:00 UTC will enjoy the merchant rebate benefits (Spotify, Netflix) available through their Card tier and subject to current conditions for six more months (until 23 January 2023, 15:00 UTC). Thereafter, cardholders will not receive CRO reimbursement(s) when spending with these merchant(s). Instead, cardholders will receive up to 2% back when spending with these merchants, depending on their Card tier.

What it concretely means

Most of Crypto.com card users will lose in six months one of the main benefits of this payment card: the reimbursement of Spotify and Netflix.

Why it is a red flag

The only remaining advantage is the 2% cashback. However, Binance offers the same cashback on its card, but with only 1 BNB to be held, instead of EUR 350 to be staked in CRO at Crypto.com for the same cashback, with a monhtly limit of $25... Vs. EUR 100 for Binance with only 1 BNB held... Therefore, Crypto.com card offers no advantage anymore vs. Binance, which is its main competitor. As this payment card is the main reason for being of Crypto.com application, we can predict that more and more users will fly away from this app, which will weaken Crypto.com further down to bankruptcy.

What it means for Crypto.com (CRO) token

The CRO token has still some utility on Cronos blockchain for DeFi. However, here again, Binance Coin (BNB) is a strong competitor, with a much higher TVL (Total Value Locked) than on Cronos: Binance Chain TVL is currently USD 5.34 billion, whereas it is only USD 1.18 billion for Cronos. Furthermore, with the upcoming Ethereum (ETH) merge and Bitcoin (BTC) halving in two years, the interest of the Crypto community in Cronos will progressively fade away.

In summary

Crypto.com is shooting into their own foot, which could kill their app and token. As usual in Crypto, nothing can be guaranteed there. But the risk is high.

Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.

Please find below a few links to earn a few coins...