Crypto.com Revives CRO Coin Card Crypto Staking (were we trolled?)

2nd of May 2022, Crypto.com announced in an email that they are killing their famous crypto card cro staking program (see this video: https://youtu.be/M1X9SZxTZok)

Of course there was very vocal hoo-ha and complaints.

There were many large amount sell orders too, in the millions of CRO coin being sold. Personally, as a mixed income investor and growth investor, CRO was up my alley because it provided me with income

  • 12% from Earn and
  • 12% from Stake

When the Earn program was knee capped by adding the tiering in (basically anything above USD 30K, the earn is pittance) – I knew their earn program days were over.

So I felt it was still okay that I could still lean on 12% from CRO card staking.

But when they announced overnight (literally the night before, as I got the email on 2nd May but the effects started 1st May), it was brutal and sincerely, fucking unprofessionally annoying.

I considered, and since I couldn’t get income from CRO, I think my CRO bag is too much, so I decided to

  • unstake my Icy White tier CRO amounts
  • sell those CRO amounts for both top ten crypto as well as to fiat (withdraw to my bank account)

I still have a good chunk of CRO staked in the exchange, but I’ll think about what to do with it later when the staking is finished.

Is CDC out of money?

Some of the hearsay (lol, in a nod to Depp vs Heard case) is that Crypto.com is outta money because they spent too much in adspend (advertising spend).

It’s unlikely they are out of money. This year itself, in January, they set aside USD 500 million to invest in early stage crypto start ups (ie crypto venture capitalism), paid out of their balance sheet (ie cash from business operations). They have cash.

So….if they weren’t outta cash, then why?

A few reasons in my speculated theories (hey, I’m no insider, but I can estimate why)

  1. It was in their plan all along to reduce such non-revenue-generating expenses. Paying out in crypto earn and cro staking doesn’t generate revenue for them at all. It was good and sexy to attract clients and users* (the keyword here is USERS. They want users who use their platforms and trade, so that it generates revenue).
  2. Secondly, they burned 80% of CRO so it’s possible that they need to create a buy-back event AS well as shake out passive, non-active non-revenue generating hodlers.
  3. This isnt their first time reducing earn or stake rewards since they started operations.

What should you do?

Dr Crypto Finance said this in this article: https://drcryptofinance.substack.com/p/crypto-dot-com-cdc-cro-crypto-crisis?

  • Don’t Sell Your CRO Right Now —> CDC is changing its fundamentals. This doesn’t mean it has lost its fundamentals. I, personally, believe it will succeed in its rebrand and will give Binance, BSC, and BNB a run for their money. Don’t sell for a loss now when you can sell for a profit 2 years from now (inflation-adjusted…)
  • Don’t Buy Anymore CRO Right Now —> market conditions are currently very volatile and I, honestly, have no idea where the price of CRO will settle. I believe CRO will not fall below 0.20 USD/CRO but I also might be wrong if CDC takes actions to move the price further down. At the end of the day, I think you have 2 years of bear market instability on your side.
  • Prepare To Buy More CRO In The Next 6-12 Months —> if you haven’t lost faith in the company, you may consider buying more CRO but at the 0.20-0.25 USD/CRO price point. Bear in mind that your DeFi wallet will continue to offer you ~12% returns on staking your CRO through various validator nodes if you do choose to buy CRO in the next 6-12 months.

What am I going to do?

For me, as I prefer and need to have income as well as growth (capital gains), I cannot just wait for CRO price to increase. I know their price will increase gradually with their

  • defi
  • cronos chain
  • crypto early-stage investing
  • others

But I need income to live. So for me, I liquidated a chunk to both

  • fiat, which I’ve drawn out to my bank account
  • top 10 non-stable coin positions

I’ll be withdrawing more crypto to fiat purchasing a rental property that has more stability.

Am I still in CRO?

Hell yeah.

I believe they can be a strong contender to Binance as they grow. I am still annoyed at the way they communicate and do things, and moving forward, I am setting my expectation that eventually there will be zero earn and stake rewards, and my returns on CRO will be purely on price action of CRO coin.

Crypto.com stops and kills card staking program (no more crypto passive staking income!)

Sorry news indeed

I received this sorry, sorry news today, 2nd May 2022.

In a nutshell:

  1. decreased CRO cashback across all cards (most notably, all staked card cashback: Obsidian drops from 8% to 5%; Icy White/Rose Gold drops from 5% to 3%, Indigo/Jade drops to 1.5% and blue doesn’t earn any cashback at all)
  2. capping of CRO cashback below Icy White/Rose Gold and Obsidian – Indigo/Jade max $50/month and Ruby Steel max $25 CRO cashback per month
  3. the hardest hitting was the entire killing of crypto stake returns, which was the primary reason why I (and perhaps many others like me), still held onto staking

End of crypto.com?

To me, it marks the end of good crypto passive income (technically, crypto passive staking income) which I got as a Icy White CRO VISA card holder.

It was pretty good too, at 12% returns per year.

As I mourn this, I’m not dumb – I knew it’s a matter of time, but as I mentioned, there should be better tiering like say, go from 12% to 10% or 8%, is still acceptable.

But oing from 12% to 0%?

That’s way hard nerfing man, crypto.com.

Well, it was good while the earn and stake lasted, and I dont think it’s the end of crypto.com – they still have their developing cannons:

  • DeFi
  • Cronos chain
  • ?NFT (not sure if they’re strong with this).

What am I doing from here?

Well for me, there is little point to hold onto the card anymore, and I have shelved the idea of upgrading to Obsidian black. Zero benefits of locking $40K or $400K for zero stake returns as well as 3% and 5% CRO cashback.

So as my card stake has already hit the 180 days (6 months) staking, I unstaked it and sold my CRO for USDC. I am still holding onto CRO coins, just rebalancing and spreading out the love.

I will also be cashing out a portion to invest in more traditional investments, such as

  • rental property
  • index funds

Still have chunk in crypto of course

I think we’re still early to the crypto party, just that now we’re in bear market and winter, so I’m just gonna hodl after I withdraw profits and principal amounts, and camp on.

Can Bitcoin price go up to $950K with adoption and government regulation?

Disclaimer: crypto is volatile and there are lots of scams out there – you can make a lot or you can lose a lot (or everything). Do your own research – this is not financial advice. I’m just showing what I’m doing, and I’m taking risks on my end too. I’ve been both right and wrong before, so do your research.

How I started in crypto

I entered crypto speculation in late 2017 when my best friend introduced me to it, and of course I was freaking skeptical when I first saw it. I was very cautious of it being a scam as I hadnt really heard of bitcoin or crypto before that (I’m in the offline physical therapy world).

I pored over whitepapers, got involved with different crypto and blockchain projects.

Of course, I definitely got rugpulled a number of times across different projects (the highest risks are with new projects with lots of hype and fluff and promises of high returns).

At the end of 2018, there was a massive crash (or correction?) as bitcoin went I sat on a paper loss of 80%++ – I was so sad and guilty when I told my wife, but I stayed for both the tech and adoption, which I believe will increase the price.

True enough, in 2021, my speculations in crypto sits currently at 300%+ of my original investment amount, and I’m sensing that it should have another good run as governments and regulations on board and after it gets regulated, the returns should be “normal like financial markets”.

Note #:1 regulations usually means that financial institutions, sovereign/wealth funds, pension plans etc will have more exposure to crypto as a whole.

I chanced upon some videos/articles and wanted to share this with you:

  1. Kevin O’Leary: Crypto Will Be the 12th Sector of the S&P https://www.youtube.com/watch?v=gSPSRVDN8l4
  2. Kevin O’Leary: 20% of my portfolio is in cryptocurrencies https://www.youtube.com/watch?v=vqkC_XcxxJg
  3. Kevin O’Leary: Buy The Dip And Chill For 1 Year – They Want To Fool You, Don’t Listen To Them https://www.youtube.com/watch?v=FKqEOFwTO2A
  4. Kevin O’Leary: This Is Your Last Chance To Become Millionaire – My Most Sincere Advice To You https://www.youtube.com/watch?v=5_cyE10Ljms&t=5s
  5. BlackRock, Fidelity and others to invest $400M in USDC stablecoin issuer Circle https://techcrunch.com/2022/04/12/blackrock-fidelity-and-others-to-invest-400m-in-usdc-stablecoin-issuer-circle/
  6. Coin Gecko https://www.coingecko.com/
  7. 2021 financial market value https://www.statista.com/statistics/421060/global-financial-institutions-assets/

I believe that crypto including bitcoin, ethereum, solana, ripple and other crypto/blockchain projects would be regulated soon enough, and that itself will lead to a global increase of crypto market cap value as a whole.

No dang crystal ball

Of course, I dont have a crystal ball though that’d be nice lol, but I am ready to hodl my crypto speculations for a good 5-10+ years and longer. Why this is the case is as crypto becomes mainstream, it’d become “normal” to have, own and use crypto as methods of making and receiving payment =)

Note #2 I made a mistake – I thought the global financial market is worth 105M (see link #7), but it’s actually closer to $460 trillion in 2021. And I hadnt factored in other types of investments such as real estate.

For reference, crypto market cap April 2022 is $1.9T. That’s a conservative 230X comparatively.

What you can consider

For those who want to dip their toes / speculate into crypto but unsure, you can consider

  1. speculating into the top 10 / 50 / 100 of listed coins on coingecko
  2. ask your employer/side hustle jobs to pay you in crypto/btc
  3. invest into companies that have crypto exposure such as Tesla, MicroStrategy, NVidia etc

Remember, direct crypto speculation can be very volatile though is an emerging asset class – do your research and assume you can lose your invested amounts.

I’ll be holding onto my crypto and 5-10 years plus and equally as important, is to cash out (take out principal invested and profits) regularly – makes me sleep like a baby because my loss-related stress levels go down significantly =)

As Kevin o’Leary said in one of his videos: buy the dip and chill.

How to get money to finance your passive income goals (and dreams)

How To Get Money To Finance Your Passive Income Goals

Sometimes when I share my story where I started from zero to build up a 7-figure portfolio, people dismiss and summarize my wealth journey as fluke, that i’m somehow a lucky bastard.
Some think I was born rich because I look rich lol
But bros…I was born in a middle-class-to-poor family, and I have lots of memories of how we grow up pretty broke, some examples:
  • standing at the glass window of KFC and my embarrassed mother shoo-ing us away
  • returning cash gifts to my parents to “recycle” and give back
  • I ate a LOT of bean sprouts and eggs and carbs
  • oh the carbs – we would bulk buy plain biscuits and noodles from MAKRO, no longer around, and had lots of oatmeal, rice, porridge (oats or rice)

I really, really, really worked, learnt, saved, learnt some more to get to where I want to go, this was the typical life I had last 8+ years:

  1. Grind/worked 16-hour days, 7 days a week for 8 years after graduating (still working tho)
  2. Reinvesting every dollar, living very frugally
  3. …whilst people around me go on holidays, parties and buying whatever they liked

Is it easy to build passive income and retire early? Hell no!

It’s bloody tough and hard….if it’s easy, everyone would have lots of money, six pack abs and look forever 16 right (ehehe).
Of course I do it because it’s worth it – to me it means a lot to get streams of passive income as early as you can in life, ideally before 45 – so you can spend the next 45 years of your life playing and doing shit that’s important to you.

Ben Settle’s Gran Torino Story (from a movie) and what the movie taught me

I got an email from Ben Settle, and it summarizes how I began building my wealth and passive income journey. I figured it’s a good sharing story too.
Let me tell you the story told in Ben’s email:
==== Snippet from Ben’s email ====
So the snippet from the “Gran Torino” screenplay.
In the scene the old grouchy main character Walt — played by Clint Eastwood — is talking to the young loner teen Tao who he befriends about the valuable tool set in his garage, and how he got it.
TAO: I can’t afford to buy all this stuff.
WALT: I didn’t buy all this stuff at once, blockhead. I’ve lived here for fifty years. A man stays in one place long enough he tends to attract a decent set of tools.
TAO: Yeah, but…
WALT: Look, kid, I think I know where you’re going with this. You don’t need everything to maintain a house. I’m going to let you in on a little secret.
[Walt slaps down THREE items in quick succession.]
WALT: This is for you. Roll of duct tape, can of WD-40, and a pair of vise-grips. Any man who’s worth a shit can do half his household jobs with these three things. In the odd chance that doesn’t work out, you can borrow something.
And so the script goes…
==== End snippet from Ben’s email ====

2 points I picked up from Gran Torino story:

#1 – Start wherever you are, and start now.
Maybe it’s saving and investing $100 a month first. Or less or more, I don’t care.
Just start and keep going.
#2 – Keep it simple basic when you’re starting out
  1. Roll of duct tape = earn more / side hustle
  2. Can of WD-40 = stop buying shit that don’t advance your passive income goals
  3. Pair of vise-grips = investing and reinvesting into safe and reliable defensive assets

You just start where you are

You dont need a million dollars to start the ball rolling.

You dont need the best phones or computers or softwares or people.

Just start where you are and keep going.

I chose to freelance, and increased my base salary by at least 100%.

Entrepreneurship to earn more

So, I mentioned that I have / had some skills right? I’m a trained and license occupational therapist, so I can do related work in nursing homes, house calls etc.

I contacted an agency and secured a freelance job, which within first month increased my take home from $2000 before bonus to $4800 net.

Now before people start mentioning that I’m “luckier than some” because I had these skills and parents that funded my studies, I will agree. And I will add that you start where you are. Some of you will have skills and some dont. Some will have debt and some dont.

Whatever it is, start where you are.

It is waaaaaaay more important that you start and keep going, rather than having perfect line-up in your situation

I had no money when I started, so I spent what I had: time. I read blogs, books from libraries, met people and asked questions. As we earned more, we invested everything into growing the company. I went for classes and bought books and attended seminars on sales, money, management, marketing etc to improve my skills.

Made so many mistakes by upsetting clients or vendors, all the mistakes in the book.

We undercharged so much, and made little.

I was shit at negotiating, fearing that clients wont be happy.

I read and re-read all the marketing blogs and seminar materials I paid for.

And continued serving.

70% were happy, and 30% weren’t.

These got me experience dealing with realities of money, business and clients. It also got word of mouth going. The 70% referred me more clients.

Whenever possible, we took out some money to pay down our home so that we lived without debt.

I continued learning from the lessons and the processes on money, business and clients. I’m still learning and growing today, since I started my first business when I was 20 years old. I’m 40 years old today.

I continued to apply as I learned, and we grew the business more and more, and it was eventually acquired for a tidy 7-figure sum. I took that money and put some in real estate, and somehow, much went into crypto.

I’m going for classes to learn how to build an online business as well as use the money generated from crypto to live on where I pay for taxi, meals, grocery, even my power, water and gas bills!

So on and so forth.

Repeat until done

You may start your passive income and early retirement journey in debt or from zero, but as you stick with it long enough, keeping unnecessary costs low, earning more with side hustling and investing/reinvesting, you will find that your portfolio will grow and compound with time and continued investment.

You dont need to start out with a huge amount.

If you’re like me, starting out from zero, then you only need the retire early equivalent of duct tape, WD40 and vise-grips. My answer and conclusion is to start and keep going. Even if it’s $100 a month. Start there, keep at it. Pickup a side hustle, earn a couple hundred or more and chuck that into Vanguard. As you earn more, invest more and more

Work, save, invest, reinvest.

Do this again and again, over time.

Until you reach your portfolio target and ideal take home from investments.

Then you’re done, and onto the next.

Crypto com USDC Stablecoin Earn Versus Binance USDC Flex Earn – Which is better?

So I wanted to compare between Crypto.com’s flexible USDC earn program versus Binance’s flexible USDC earn program (as crypto.com is an upcoming contender to binance), and I found some nice nuggets:

Binance earn flexible USDC program is documented at 1.2% but it’s actually a blended of:

  • First $75,000 USDC : 1.20%
  • Above $75,000 USDC : 0.30%

So if you put $100,000 USDC earn in Binance you will get

  • First $75,000 @ 1.20% pa = $900
  • Next $25,000 @ 0.3% = $75
  • Total = $975 end of 12 months ~ 0.00975%

Compare that to Crypto.com’s flexible USDC earn problem:

Firstly, crypto.com’s earn program is 1.5%, so $100,000 is $1,500 per annum, an easy win comparatively…but we’re not gonna be satisfied with that right?

I speak for myself at least (eheh) – what I want to know i:

how do we earn more on binance and crypto.com earn?

3) If you’re good with USDT, Binance flexible earn documents a 10% per annum…

but it’s a blended percentage of

  • First $2,000 USDT : 10.00%
  • $2,000-$75,000 USDT : 3.00%
  • More than $75,000 USDT : 1.00%

This means that it’s NOT a pure 10%, but a blended, mixed.

A clearer illustration, so $100,000 in binance USDT earn =

  • First $2,000 @ 10% = $200
  • $2,000 – $75,000 ($73,000) @ 3% = $2190
  • Last $25,000 @ 1% = $250
  • Total $2640 ~ 2.64% — much better than a blended 1% of USDC flexible earn in Binance.

Better than crypto.com’s $100K in USDC flex earn too (but USDT versus USDC…different).

How to earn more % USDC on crypto.com

  • Stake more cro (go up in tiers) – but of course this requires more cash (buying CRO coins and getting their higher tier card, the higher the tier the better the rates, but min Obsidian Jade / Indigo will give you best Earn rates)
  • Stake fixed 3-month term (more than USD 30K will be half the rates but the rates are higher anyway)* (This is key).

The best terms are based on 3-month earn program, which can net you up 6% for the first $30,000 and 3% above $30,000.

That’d mean if you put in $100,000 for 3 months with 400 or less CRO staked, your USDC earn rates are:

  • First $30,000 @ 6% = $1,800
  • Next $70,000 @ 6% x 0.5 = $2,100
  • Total $3,900 ~ 3.9%

Let me know what you’re doing with your crypto.com earn.

Crypto.com Cuts Earn Rates Again – Stablecoins 2% Flexible Term

Arghhhhh!

I shared in an earlier video how crypto.com was changing their crypto.com earn rates which would go live on 4th April 2022 (video here: https://www.youtube.com/watch?v=xUlA6bTpDyw)

And most of our begrudgingly lick our wounds, accepting it generally, and I would believe many of us are planning our next 3-month lock in…but alas!

Crypto.com made another sudden change, by further decreasing the rates on 26th March 2022, one week before 4th April =(

Basically, the rates dropped more eg if you stake 4000 CRO, a 3 month USDC earn would net you 8% on the first USD 30K and anything above that would be 4%. (From 12% pa to 10% to 8% pa)

Does this mean doom and gloom for crypto.com?

Nah, I dont think so – their T&C indicated they could change the terms anytime, and though I’d like to to be done in a cooler, open and sincere manner, they didn’t.

But this doesnt mean that their company suck.

If anything, crypto.com is doing a lot of aggressive marketing and advertising for their platform, and I am looking at good price action of CRO (cronos) coin as a whole.

I will be aiming to upgrade my card from icy white to obsidian to get more cashback too.

I’m also at a place in my life where I am looking to enter real estate for both living and rental, so…I’m gonna roll with this. They never promised we would get those delicious 12+2% forever, so I enjoyed it whilst it lasted =)

For those who are searching for more stablecoin earn rates

I’ve been hearing people mention these two:

  1. Anchor Protocol is paying up to 19% per annum (droooooooool)
  2. Celsius Network is paying up basic at 7.1% and platinum tier at 9% which is pretty sweet

I have not used these both at all, so I cannot vouch for them on a personal basis, buuuuuuuuuut celsius looks pretty solid as a company as well. I will be taking a look at them to consider diversifying from crypto.com

Not financial advice – I am sharing with you the most recent crypto.com changes to their crypto earn program, how it’s affecting my passive income cashflow, what I’m planning to do with creating more passive investing income.

6 Easy Ways To Compound CRO (cronos) and Upgrade Your Crypto.com Card Faster

I have been a cronos (CRO) hodler since 2019, and have been stacking and compounding them since then. I am bullish on them with their app, exchange and marketing; but do your own research.

Here are six (6) easy ways to compound your cronos coin to upgrade your crypto.com card faster.

Dont have a crypto.com card yet? Use my link or referral code n9h6j72gs4 and we both get USD 25 in CRO when you stake for Ruby card and above =)

1) Crypto.com CRO stake

You can get 2-6% per annum for putting your CRO into crypto.com earn; 2% for flexible term, 4% for 1 month lock in and 6% for 3 month lock in (all % are per annum and payable weekly).

There is a minimum amount of 500 CRO required each time you add to this stake.

2) Crypto.com Exchange Staking 10% per annum

This one requires a minimum of 5000 CRO and 180 days to enjoy the 10% per annum returns, payable on a daily basis.

Minimum top up is 1000 CRO each time and each top up will renew the 180-days term.

3) Crypto Stake* (card with tiered stake returns)

From here on, all the rewards are directly correlated to the level of card you have.

Generally, the higher the tier (highest tier is obsidian, then icy white / rose gold, then indigo / jade, then ruby and lastly midnight blue). The higher the tiers, the more CRO is required to lock in.

Icy white, rose gold and obsidian gets a 12% per annum return on CRO staked amounts, paid weekly. Indigo and jade are 10% per annum.

4) Crypto.com Card use + CRO cashback

  • Obsidian cashback 8% CRO cashback
  • Icy white / rose gold 5% CRO cashback
  • Jade / Indigo 3% CRO cashback
  • Ruby 2% CRO cashback
  • Midnight blue 1% CRO cashback

5) Crypto.com Bonus 2% Earn for selected Crypto Earn 3-month staking for obsidian, rose gold and icy white only

For all icy white, rose gold and obsidian tiers, whenever you set a 3-month term on Crypto.com earn, you will get bonus 2% paid out in CRO coins too, which is a nice cream on top of the cake.

6) Crypto.com Card CRO cashback

For selected items like Netflix, AirBNB etc (10% for AirBNB and Expedia; up to 100% for spotify/netflix/amazon prime).