5* - how does it affect PvP and PvE scaling

I have the same problem. Got a cover 2 weeks ago from a legendary token. Before that, in every tournament I was in top 50, but now i barely get 300 points and be in top 300-500 in PVP events. Not sure if the cover put me in a harder bracket or the tweeked the system, but i do see a change in PVP events.

I'm a 2*>3* player. Sould i sell my 5* hero ? Would it make a difference ?

I only started playing a few months ago, but I spent quite a good deal of money as did my alliance leader, and as result I ended up having 1 or 2 5* before ever championing a 2* thinking that higher level was obviously good. Now this happened so early and I didn't know anything about scaling that I can't say if I see a negative from it. I definately find that every other event seems impossible while there others are possible but are very grindy.

In my current state I have 3 5* (I've used all of them) a number of mostly unleveled 4*, 1 3* nearing champion but the rest mostly unleveled, 5 2* champions and 3 maxed 1*s. In the last even I finished 47, but that with quite a bit of grinding. The game always felt grindy to me, but it's seeming like that may be more because I shot myself in the foot early with this backwards mechanic that punishes you for getting rare drops / actually supporting the game with real money.

I'm have no intention of selling my 5*s, I'll struggle through if I have to, but I post this in hopes that some devs see this and see how this can work very badly and potentially turn away new players. Now that I know what's up I'm only spending ISO to work on my lower characters in order, but for the most part damage is already done. My game certainly isn't ruined but it's got me wondering if it's much harder than it should be.