In what is a worrying precedent for investors across the board, leading exchange Crypto.com has again slashed the rate of returns it offers on token deposits.
Announced on March 26, the cut – the platform’s second this month – reduces flexible returns offered by Crypto.com on popular tokens such as Bitcoin and Ethereum to 0.5 percent from between 1.5 – 2 percent. Returns on larger amounts, particularly stablecoins, have effectively been halved to 4 percent.
Crypto.com said the new rates would apply immediately, and that pre-existing deposits will not be affected. In an announcement earlier this month, the platform said its planned rate cuts would come into effect from April 4. This latest interest cut also makes returns offered by Crypto.com lower than those on other major platforms, including Celsius and BlockFi.
Backlash Swift and Considered
Users took to social media to protest the cut, especially as it came without warning. Reddit user u/wyzard135 summed up the overall reactive mood of investors with the following post:
“The backlash [Crypto.com] is facing is well-deserved. Even though its rate cut in this market condition […] is understandable, some transparency and communication [would] go a long way.
“However, can’t help but notice this is exactly what banks do; the past couple of years their interest rates have been plummeting and there’s practically no communication to customers about it. Customers will only see their interest paying continuously shrink, and will have to manually look up interest rates, only to see [them] keep falling.
It pains me to see Crypto.com stooping to this behaviour and I fear not only crypto.com but other crypto exchanges will start behaving like banks, which ironically crypto is trying to replace, once they get big enough with unchecked power.
Reddit user u/wyzard135
Stablecoin Staking Reduced from 12% to 8% on Three-Month Term
The move has also spilled over into the DeFi space, with returns on stablecoin deposits falling to around 12 percent across most platforms, after initially being as high as 20 percent. Some platforms are only offering 8 percent on a three-month term.
Crypto News Australia has published a list of the 10 best crypto staking websites to earn daily returns. At the top of the list is Zipmex Australia, and a guide to investing on the platform can be accessed here.
Second on the list is Swyftx, Australia’s top-rated exchange, which offers staking rewards for top market cap coins including Solana, Cardano and Polkadot. In total, 12 assets are available for staking through the platform with zero fees.
Last week, ANZ became the first Australian bank to mint the Australian dollar stablecoin A$DC.
Disclaimer:
The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.
Credit: Source link
