What is StormX? The Crypto Cashback token explained
StormX is a decentralised platform where online shoppers can earn crypto in shopping rewards, and STMX is the token to govern the platform.
StormX is a decentralised platform where online shoppers can earn crypto in shopping rewards, and STMX is the token to govern the platform. It is also used to store value in the upcoming line of StormX Debit Cards.
Today, cryptocurrencies are synonymous with high-paced trading and cutting-edge alternative investment for those looking for massive growth. However, for cryptocurrencies to truly gain traction for all sorts of people, the crypto space needs to have a less serious tone to it.
The Seattle-based StormX, Inc. has been introducing people into the world of cryptocurrencies through a unique approach. By introducing the concept of a “crypto cashback”, online shoppers can gain gradual exposure to cryptocurrencies by earning crypto as they shop.
With an app of the same name, StormX introduces cryptocurrencies to people who don’t intend to directly purchase or invest in crypto.
What is StormX?
StormX can refer to the platform, the mobile app, and the Chrome browser extension. Technically, StormX is a decentralised platform that runs on Ethereum, and the mobile app and the browser extension are two interfaces for users to interact with the platform.
StormX allows users to earn popular cryptocurrencies such as Bitcoin, Ethereum, the stablecoin Dai, and also StormX’s very own token, the STMX. The way users earn these is by first enabling the Chrome browser extension, and then shopping at the preferred online partners such as eBay, Microsoft, Uber, Nike and more.
Users can potentially earn up to 80% in crypto cashback as a shopping reward. They can also choose an option for which of the popular cryptocurrencies they would like to earn.
The StormX mobile app can do this and offers additional features such as micro-task rewards, where users can take quick surveys or other simple marketing ‘errands’ in order to earn additional cryptocurrencies.
What is the StormX token (STMX) used for?
StormX token, or STMX for short, is an ERC-20 token for governance and staking of the StormX platform. Being an ERC-20 token means that the token was issued on the Ethereum blockchain, and is easily deposited into an Ethereum wallet such as MetaMask, Exodus, or the hardware wallet Ledger.
However, in order for STMX to fully function as intended, the wallet must be connected to the StormX app. This can also result in an upgrade, whereby a user will potentially earn higher rewards.
Staking can also earn users some passive income. It is still unclear as to why staking is necessary since StormX runs on Ethereum, which currently runs with a Proof of Work consensus protocol. StormX is also not a native cryptocurrency of the Ethereum blockchain.
One possible explanation is that ‘staking’ in this context is really just a pseudonym to describe the action of depositing STMX into a reserve, either for liquidity purposes or to contribute to a treasury system for funding development. There is currently no way to confirm this hypothesis.
The governance of the StormX decentralised app is straightforward. Users have to use either Chrome, Safari, or Microsoft Edge to visit governance.stormx.io. Immediately upon landing the page, a proposal is shown along with a pie chart that shows the current voting status.
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How is STMX distributed?
STMX used to be called the Storm token with the ticker code STORM. Regardless of the name change, there will only ever be 10 billion STMX tokens in existence. The token was sold in a “crowdsale” (another word for initial coin offering, or ICO) in 2017, which helped raise US $32 million for StormX, Inc.
Interestingly, StormX’s official website has some information about the STMX token distribution.
- 41.74% were sold to early investors in the ICO or Crowdsale event.
- 10% have been awarded to users, perhaps as cash back.
- 25% are kept by the company.
- 23.26% are “locked”, possibly for staking and governance purposes.
In June 2020, STORM tokens were swapped for the now circulating STMX tokens. STMX tokens introduced security improvements to the STORM tokens, such as the removal of a “god mode” and thus improved decentralisation. STMX tokens can be locked for staking where STORM could not be staked.
The swap took place until November 2020, although a proposal (Proposal 1) suggests to allow holders of STORM to do a manual swap to give them a chance to get STMX in return.
What is the future of StormX?
To understand the road that StormX is taking, we need to take a look at the founding team, the company’s history, and their current focus.
StormX, Inc. is founded by Simon Yu and Calvin Hsieh. As of 2021, both of them still hold the position of CEO and CTO, respectively, and have involved the same people in the core team throughout their seven-year growth. You can learn more about the team members at StormX, Inc. on this page.
Since 2014, StormX, Inc. has experimented with other products that lead to the success of the current concept of the StormX platform. StormX as a platform used to focus on interactive marketing.
Businesses can partner with this platform to encourage users to try new products and games, by installing apps, and doing other micro-tasks like completing surveys, sharing the apps, and leaving a review. As an incentive, they would receive Bolts, which is a reward points system that is not related to any crypto asset.
Then, StormX introduced the StormShop browser extension, which was the beginning of how crypto cashback came about. Since 2014, both platforms have rewarded over 13 million STMX tokens, 249 Bitcoins, and 570 Ethers.
The number of e-commerce and business partners grew consistently. In 2020, StormX deployed the StormX Debit Card, following the ever-popular trend of storing value in STMX, and converting them into cash at the point of purchase in a seamless way. This gives the STMX token more utility than ever before.
Incidentally, this caused the price of STMX to explode to incredible heights. At one point, the price climbed 500% in a single day. Unfortunately, this was just one of the effects of demand shock due to crowd psychology. This kind of growth is not sustainable, and a practical expectation about how a crypto asset will grow is important to have when investing.
StormX tokens have their own value through their increase in utility. The widespread use could potentially beat Bitcoin as the network is fast. However, it also has many competitors to contend with, such as Stellar, XRP, and many more payment-focused networks.
Are you bullish on StormX (STMX)?
If you are confident with the marketing strategy of StormX, Inc. and the wide use cases of STMX, you can get the tokens easily and securely through Easy Crypto.
Click here to learn more about how to buy and sell StormX (STMX).
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Disclaimer: Information is current as at the date of publication. This is general information only and is not intended to be advice. Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.
Last updated August 29, 2022