PNG icon distortion

I obtained a collection of png icons from the asset store. I was planning to use these icon to replace the cursor depending on in-game actions.

Code (CSharp):

1. public Texture2D pointer;
2.     public Texture2D target;
3.     public Texture2D doorway;
4.  
5. //some logic
6. Cursor.SetCursor(target, new Vector2(16, 16), CursorMode.Auto);
7.  
8. //some logic
9. Cursor.SetCursor(doorway, new Vector2(16, 16), CursorMode.Auto);
10.  
11. //some logic
12. Cursor.SetCursor(pointer, Vector2.zero, CursorMode.Auto);
13.  

Despite lacking syntax errors, this piece of code causes to unity to display the png icons with certain level of distortion.

 

In the import settings for your cursors:

Are you using the "Cursor" Texture Type?
What Filter Mode are you using? You should generally use Point filtering for a cursor.
You should probably also use High Quality or no compression as well.