Cashback rewards for purchases have long been a popular tactic used by banks and credit card companies to entice consumers to use their services.
Several cryptocurrency companies like BlockFi and Coinbase have revealed future plans to offer cryptocurrency-backed debit and credit cards that offer cashback rewards in Bitcoin and StormX (STMX) has joined the crowd.
StormX (STMX) is a gamified marketplace that allows users to earn STMX as well as other cryptocurrencies for shopping at one of its online network partner stores or by completing micro-tasks through its app.
Data from Cointelegraph Markets and TradingView shows that the price of STMX has surged more than 2,800% over the past two months, going from a low of $0.0028 on Feb. 1 to a high of $0.083 on Feb. 20 as increases in staking, big-name retailer integrations, and optimism about the release of debit card helped propel the token price higher.
Staking incentives attract active users
One of the main driving forces behind growth in the cryptocurrency sector over the past year has been decentralized finance, which has offered a way for crypto holders to make money and earn a yield on their holdings without creating a taxable event.
StormX currently offers a 17.5% yield on STMX tokens and the cashback rewards are increased for token holders.
According to data from the StormX app, there are currently 799.7 million STMX tokens locked on the protocol, equating to a total value locked of $43.2 million at the time of writing.
Partnerships and network expansion lead to adoption
According to the project’s website, the StormX partnership network already contains more than 700 stores and websites from around the world, with more being added weekly as cryptocurrency adoption grows.
A scroll through the project’s Twitter feed also shows regular promotional events with big-name retailers like Walmart, eBay and Kroger, as well as cashback offers for other expenses like hotel accommodations and online learning courses at Udemy.
Cryptocurrency rewards can range from 0.5% to more than 85% depending on the store and the users’ membership level. Users have the option to receive their rewards in Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Dai (DAI), Yearn.finance (YFI) or STMX.
StormX joins in on the debit card trend
A third reason for the strong growth and positive forward outlook for StormX can be found on the project’s roadmap.
The development team is currently working to integrate debit card functionality to the StormX app which will allow users to directly use their cryptocurrency holdings to pay for purchases and earn rewards at the same time.
As a way to get the community involved in its development, StormX launched its first open-source bounty competition by calling for designs for its future debit cards and offered $100 in DAI to the winning submission.
The team also plans to introduce on-chain governance voting to decide if new reward currencies should be added to StormX.
Adding support for additional tokens could open the ecosystem to new investors who might be eager to spend their cryptocurrency on everyday purchases.
With a wide-ranging partnership network and user incentives like token staking and cashback rewards on common purchases, the StormX ecosystem is well-positioned to see further growth, assuming that the mainstream awareness and adoption of cryptocurrency increases.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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