With the bull market raging on and new ATH’s becoming a regular occurance, the ability to immediately cash-out your crypto gains and spend in-store is an attractive product offering.
Companies are increasingly finding value in card programmes and there has been a rushed attempt to get these live. We have seen this with the likes of Binance who acquired Swipe last year to temporarily fast-track their card programme before they met the necessary requirement to release their own fully Binance-branded crypto cards
Card programmes are costly, and take months to develop due to the challenging red tape and lengthy manufacturing times. However, demand for them is constantly rising as evidenced by crypto.com, possibly the largest crypto card provider by user count, surpassing 10 million customers.
Despite the increased attraction to card programmes, there are a few underlying issues arising from their surge; predominantly the centralised nature of such companies.
Satoshi Nakamoto, the creator of Bitcoin, mentions several times his opposition towards centralisation and 3rd party middlemen.
“With e-currency based on cryptographic proof, without the need to trust a third party middleman, money can be secure and transactions effortless.”
“The root problem with conventional currency is all the trust that’s required to make it work.”
“A lot of people automatically dismiss e-currency as a lost cause because of all the companies that failed since the 1990’s. I hope it’s obvious it was only the centrally controlled nature of those systems that doomed them.”
Yet, almost all crypto cards on the market (Coinbase, Binance, Revolut, Crypto.com, Wirex, etc.) require the user to entrust the company with possession of their crypto. Ironically, the crypto market is moving away from the very thing that gives it value – financial independence.
One start-up primed to change this is Plutus, a crypto start-up that has been working on cutting-edge tech since 2015. Plutus created the world’s first DeFi Crypto Card. What does this mean?
It means you can connect any wallet of your choice and retain the private keys rather than having to trust the card providers native wallet. This means the user has full control and ownership over their crypto at all times; no possibility of being blocked out of your crypto wallet or censored transactions.
Instead of a centralised exchange, Plutus uses a peer-to-peer exchange to facilitate conversions from crypto-to-fiat before you spend in-store which, again, means the user never has trust a 3rd party with your assets.
These are monumental developments that align Plutus a lot closer to the ethos of crypto.
The Issues With Plutus
DeFi products such as Plutus’ are significantly more challenging to build, largely as it is uncharted territory that requires lengthy research and development. Plutus has spent time developing some incredibly innovative tech, but in the meantime, centralised competitors have managed to swoop up market share.
However, with a recent $5 million backing from a prominent crypto fund, Alphabit; Plutus is in a strong position to rapidly start acquiring users and reclaim a large share of the market. Plutus currently has 35,000 users, but with strong USP’s that distinguish them from the rest, the upside potential for Plutus and their native token, Pluton (PLU) is huge.
In fact, in the last 7 days the tokens value has climbed over 104%, and with a market cap 130x smaller than competitors, there are still a lot of possibilities.