What is StormX (STMX)? Learn more about this Crypto Cashback platform
StormX is a platform that allows users to earn cryptocurrencies through cashbacks, completing tasks, and staking.
Launched in 2015, StormX was founded by Simon Yu (CEO) and Calvin Hsieh (CTO) and is headquartered in Seattle, Washington. It is 100% usable in Singapore, featuring partnered stores such as Zalora, Shopee, Razer, etc. and in 2020, StormX Singapore was also officially incorporated with its primary activity as a “Microgaming and shopping platform that allows users to earn cryptocurrency”.
StormX can be downloaded from the Appstore or Google play store and as a browser extension as well, similar to that of “Honey” or “Shopback”. But what makes StormX stand out is the cashback is paid in crypto, which can then be used to earn even more crypto through staking.
How it works
Shopping cashback
In the StormX chrome extension, users can select from a range of partner stores that offer different cashback amounts. This automatically activates the crypto cashback in the background, and once a purchase goes through, it will show up in the rewards history. The rewards are then distributed every Sunday.
Tasks
Completing tasks from StormX such as downloading certain apps, completing surveys, etc. would also grant cryptocurrency rewards. However, I don’t believe this is available yet for Singapore-based users since the only options available for me are “Buy Crypto” and “Referrals” unlike the one seen below:
Also, StormX mentioned that every task has its country availability. So what I’m guessing is they have yet to acquire Singapore-based sponsors to offer task rewards, but I’m hoping it would come out soon as I’m keen to explore how much I can earn from this.
STMX Token
STMX has a total supply of 10 billion that is distributed as follows:
STMX is an ERC-20 token with a current circulating supply of about 9.3 billion (track live at https://www.coingecko.com/en/coins/stormx) with about 46,000 holders. StormX’s initial token STORM has been swapped out for STMX tokens in 2020, offering greater security features and the ability to stake.
STMX does not have a deflationary mechanism like token burns to decrease the supply of tokens, but it is still a valuable token. Despite only having 46,000 token holders and 9,000 participants in their ICO in 2017, they managed to raise $32 million and STMX’s current market cap stands at $153 million. StormX’s total app downloads also stand at 3.5 million which is a pretty large user base.
What I am personally hoping to see is when the StormX Debit Card gets released (projected to release at the end of Q1 2022), the 3.5 million userbase will be interested in the physical card and start buying and holding STMX since it serves as a value in the Debit Card, similar to what Crypto.com is doing where CRO is converted to its fiat equivalent in the card.
StormX’s tiered memberships
These are the 6 different tiers that StormX users would fall in, with Purple being the default tier for everybody, requiring no STMX in your wallet. As you progress up the membership levels, you would get bonus rewards, and at the gold tier and above, you would also get a reward time reduction. Here’s the detailed breakdown for the different tiers:
How the cashback bonus works is say, for example, you purchase a $100 item at a store that offers 5% cashback in STMX tokens. At the basic Purple tier, your default cashback would be $5 in STMX. But if you are in Platinum, your cashback amount increases to $12.5 (5 x 2.5) in STMX.
So… you are looking to get some juicy crypto cashback, here’s how you can participate too:
First off, you have to install the StormX platform which is available in the App Store or Google Play Store, and as a chrome extension for desktop users.
To participate at the most basic Purple tier, you don’t need to purchase and hold STMX. All you have to do is connect your wallet to the StormX extension. Metamask is recommended for ease of use, if you wish to learn more about Metamask, you can read about it in this article.
When you make a purchase, you would receive cashback in the form of STMX tokens in your StormX account. Do note, that when making a purchase, you may not be allowed to use external coupon codes.
Also, please be aware that there may be a limit on the amount of crypto cashback you can receive from StormX, along with other terms that you should read carefully before following through on a purchase. So don’t be too surprised if you spent $10,000 and received only $6.65 cashback from your purchase on Shopee:
But if you are looking to get a higher tier membership for that juicy cashback bonus, you would need to hold STMX tokens in your wallet. Below are some of the exchanges that list STMX, from centralized exchanges like FTX and KuCoin (usable in SG) to decentralized exchanges like UniSwap and KyberSwap.
After you have purchased the STMX tokens, you then need to connect your wallet to your StormX account. You can either transfer the STMX tokens to your Metamask wallet and connect that to your StormX account, or another way is to connect KuCoin to StormX. Yes, KuCoin allows you to generate an API key so you can hold your STMX balance on KuCoin but it would register in the StormX platform.
Using the Metamask wallet would incur Ethereum gas fees, which is one of the major downsides as it can get quite expensive over time, but doing so allows you to stake your STMX tokens on the StormX platform to earn some extra APR. On the other hand, connecting KuCoin directly would incur 0 transaction fees, but the main downside is you cannot stake your STMX tokens, meaning you can only earn by crossing your fingers and hoping the token value goes up.
Connect using Metamask
If you don’t have a Metamask wallet, or don’t know how to transfer tokens into your wallet from an exchange, I’d highly recommend you take a look at the article on Metamask wallets here.
Assuming you already have a Metamask wallet and some ETH to pay the gas fees, you then need to transfer STMX tokens into your Metamask wallet and connect it to StormX by clicking on the “stake” menu button in the platform extension.
Using the Metamask wallet method allows you to stake on the StormX platform, which is relatively easy to use. Simply enter the amount you wish to stake, and click “Stake”. The rewards from your stake would then be credited weekly.
Connect KuCoin using API Key
StormX has a complete guide on how to do this, but I’ll try to simplify it into fewer steps:
- Have a KuCoin account with 2-factor authentication enabled, a trading password set, and an email binded. This must be done to generate an API key.
- Head over to “API Management” in the menu and select “Create API”
- Fill out the API name and enter a password for it. For API Restrictions, select “General” and for IP Restriction, select “No”.
- After clicking “Next”, the API Secret will be shown. Copy it and save it somewhere safe.
- On the StormX platform, select “KuCoin” as your preferred wallet and enter in the API key, passphrase, and secret.
Once you click “Connect” your STMX balance in KuCoin will be linked to the platform and you will be given a membership tier based on the amount of STMX you have in your wallet.
Roadmap 2022
KuCoin and other wallet integrations – Like how you can use API to connect KuCoin to StormX, they intend to do the same for other exchanges. Some exchanges which I am hoping to see them integrate with are Gemini or even FTX which are highly popular.
StormX Debit Card launch – Like Crypto.com, StormX also intends to issue its very own crypto cashback card, earning you up to 5% cashback on all purchases or up to 15% at partnered stores, usable at over 46 million locations globally. Although the cards haven’t been released yet, you can pre-register to reserve a spot in a queue to get the card, more on that later.
StormX issues 2 different debit cards: Standard and Premium. Depending on your membership tier, you can apply for either one of the cards. The standard plastic cards are eligible for anyone from the Purple to Silver tier, while the premium metal cards are eligible for those above the gold tier.
These cards are planned for release at end of Q1 2022, with access to virtual cards being immediate, and the physical cards would arrive after. So how do you pre-register? It’s as simple as entering your email, yup that easy! Just head over to https://stormx.io/debit-card.
StormX Checking Accounts – When the debit card launches, the checking accounts would serve as a simpler option to deposit cash into the debit card through an ACH transfer.
Concerns: Why do so few people know about StormX in the crypto space? Other concerns?
Having 3.5 million app downloads should probably mean StormX is taking off or has already taken off, right? This I think is the one part that confuses me: 3.5 million users, but only about 46,000 STMX token holders, and 130,000 rewards members (meaning, those who connected a wallet and are placed in a membership tier).
Also, among the 46,000 STMX token holders, 70% of the total circulating supply is held by the top 10 holders, and 89% is among the top 100. This could potentially indicate the presence of a whale, who may dump their holdings and drop the token price a fair bit.
Conclusion: Where do I think the project is headed and how much potential does it have? STMX rally?
Recently, I applied for the StormX debit card, set to be released at the end of Q1 2022, and I’m pretty excited to see how that plays out. But at the moment, StormX is a pretty good crypto cashback platform with many partnered stores that is simple to use and even offer to stake for extra earnings. But not looking at the crypto aspect, one problem I can see that could reduce the number of rewards members, is that you cannot use other vouchers or coupons if you activate StormX cashback.
Sure, the cashback may be a decent 4-6% on average, but most shopping platforms also offer vouchers or special promotions that may offer a higher percentage off compared to the cashback amount, thus it would make more sense to use the vouchers.
If StormX can offer cashback alongside the coupons or vouchers, I think that may increase the number of rewards members on their platform. I am also closely watching how their Debit Card plays out as I am excited to receive one on the release date. I’m hoping that with this release, there would be more STMX token holders out there, bumping the price of the token.
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