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Crypto.com Drops 18% Interest on CRO

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@travelwritemoney
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Members of Crypto.com received news overnight that the 18% interest rate on CRO would drop to 6% or less, depending on the staking level of the account. You can see more details on their blog.

The news comes shortly after Crypto.com also announced that they would be halving the $50 referral bonus to $25. This has led to speculation that the company is struggling financially.

At the same time, the company has announced that they have crossed over 5 Million users. For all the FUD cast by a vocal number of users about the doom of Crypto.com, they seem to be growing at a fair rate. It was only months ago that Crypto.com had reached the 3 Million user mark.

In the same announcement, Crypto.com does point out that they offer alternatives for earning higher yields on CRO, which includes The Syndicate on their exchange, DeFi Swap, and Supercharger on their exchange. This gives CRO holders alternatives for earning higher yields. None of these are available to USA customers, however.

The interest rate drop does affect us here at Travel Write Money in that CRO was offering a great yield on deposits. It was often a difficult choice whether to buy CRO, which offered a great yield, or buy BTC, which currently has a massive upside. The cut in interest rates makes that difficult choice much easier. Instead, we are looking at diverting our dollar cost average buying to BTC and stablecoins. Stablecoins on Crypto.com still offer 12% interest, which is in line with other platforms.

The goal of diverting the CRO position and additions into BTC is to have enough BTC to deposit as collateral into Celsius.network to qualify for loans. It is important to either have income from deposits, or the ability to borrow against it. Our BTC position is not large enough that 6% interest is meaningful. To that end, we need to increase our position now that BTC is affordable.

Along those lines, I should point out that Hive is among the cryptos that offers a higher return. There is inflation from simply holding Hive. And, you can also earn some decent returns from leasing out your Hive Power. Of course, that doesn't include posting and curating. If you are lacking the cash to buy cryptos, you are well-served by contributing to the Hive community to earn Hive. Hive is very democratic in that regard. Everybody can participate.

UPDATE

Having said all that, I liquidated all my available CRO and bought BTC. I still have some CRO locked up in deposits for another couple weeks. Most likely, I will liquidate all but 1000 CRO, which will be staked for 2% cash back rewards on the Crypto.com card. This would leave me in a good position for a BTC bull run. I plan on rebuilding my CRO stake over time to regain the perks. It actually might be cheaper as more and more users sell off their CRO, lowering the price of the token.

Posted Using LeoFinance Beta