Plutus.it — Bank account / Card with Crypto back in PLU + Perks with Cash back / Dex.

19 April 2020

Photo: I want the pink card with that bearded God !

Plutus.it, is a crypto-friendly finance app available 24/7 on desktop/laptop and mobile that allows users to manage both fiat and crypto from the same user interface without handling the users’ crypto-assets (‘’Not your keys, not your coins’’).

Plutus currently offers a minimum viable product (MVP) with a bank account, a VISA debit card and a P2P (Peer-to-peer) exchange (DEX) with 0% fees for Premium/Pro users. Every time a Premium/Pro user spends from the card, they earn up to 3% in rewards (crypto back) in Pluton (PLU — The first decentralized loyalty token). If you use the card to spend just £/€170 per month, you can pay your monthly fee only with the crypto back.

On the top of this crypto back and just by staking some PLU, the Premium/Pro users can at the same time win cash back (Plutus Perks programme) from companies like Amazon; Nike; Airbnb; Radisson and many others. The more PLU you stake (1 to 5000), the more cash back you receive.

Plutus made a ’’flash’’ ICO in 2016 and sold 850.000 PLU for 1 million dollars (ICO price of 1 PLU = 0.00177136 BTC / 0.09472537 ETH) and the remaining 19,150,000 PLU were locked in a Ethereum smart contract for the crypto back rewards.

The project took a long time to come to life but the team is now very focused. They launched before (PPRO was the issuer) and they had to do it all again at the time of the Wavecrest fiasco but, the crypto rewards were launched in Q1 2020 and the Perks with cash back will follow in Q2. Besides PLU, only ETH is accepted at this time but you can expect BTC for Q2 as well.

Plutus operates in the EU, the United Kingdom, and will expand in the future to other countries.

Besides to be a product for everybody over 18 years old, there is three main niche markets for Plutus: 1- Crypto users for the convenience and security; 2- People that are curious about crypto; 3- People that travel; People that like to go to entertainment outings; High spenders; Executives and VIPs. With this product Plutus is giving back to the crypto ecosystem, helping crypto users and being a ‘’school’’ that introduces Crypto to the daily lives of people!

About PLU value: It’s specially related to the growth of Plutus user base. The goal is to have 100.000 customers by the end of 2020, that for such a product is a low estimate. Let’s do some math using only the 100.000 users targeted for this year: You get up to 3% crypto back for any purchase you make with your card, but to receive cash back you need to stake 1 or 100 / 500 / 2000 / 5000 PLU and the most you stake, the more cash back you receive. If from 100.000 people only, 20 % will want to have just the first level of 100 PLU, we already have 2 million PLU staked. So far, there is only 850.000 PLU in circulation and can take more than a century for all the Pluton to be rewarded. Imagine how much the price of PLU can grow with 500.000 users or 1 million and beyond…

With only a total supply of 20 million — Less than the Bitcoin 21 million, with crypto back up to 3% but decreasing to 1% (counted according with the value of BTC — Please see the white and yellow papers *) and with the growth of the user base, PLU will become more and more valuable. One PLU has a first target of more than 1% of the value of one Bitcoin!

PLU do not have any intrinsic value and only has value when parties engaging in an exchange agree on a value — Just like any fiat currency or any good or service. The value of PLU is determined by the demand, the belief that they will be able to exchange it and that there will be no failure with the issuing company.

The acceptance of the product (1-DEX & 2-CARD) is the most important factor for a wider adoption, the success of Plutus .it and the PLU token itself:

1-DEX relationship with the value of PLU — Due to the mechanics of the DEX, the assets (BTC; ETH and PLU) are bought and sold for EUR or GBP at the average of the market price. If there is no concern with BTC and ETH average market prices because they are traded in almost all of the exchanges, there is a concern with the average market price of the PLU token because it’s traded in a couple of exchanges only and is way more exposed to price manipulation (Pump and Dumps; Wash Trading; Whale Moves; Shilling; Spoofing; etc.). If PLU is traded in more reputable/regulated exchanges, it allows it to be more exposed to the market and has a better chance to avoid price manipulation and volatility. More exchanges would result in a more real and fair average price that would bring trust to the project and token itself. An optimal implementation for the stability of the PLU token is to have additionally to the Market orders, Limit Orders for PLU — This would contribute and maybe dictate the real market price of PLU because the most trades would be on the Plutus DEX.

2-CARD relationship with the price of PLU — When you spend with the card, you receive up to 3% in the form of the PLU token. For this 3% in crypto back to become 3% in fiat, PLU has to have buyers and a stable price. At the same time and to have cash back, you need to stake PLU but, people will only keep or buy PLU if they see a possibility of an increase of the price. The more PLU are staked and held, the lower the supply is and the higher the value of PLU will be.

Besides all this, PLU is a good hedge for crypto in general (including BTC) because the lower BTC price is, less PLU are emitted and more value they have.

While taking the supply and demand into account, the exchange rate will measure all of this and will factor in all the expectations of the future!

To many possibilities when looking at the goals of the project. Imagine when they will expand to other regions and territories or they will have a bank license!

* The reward system resets everyday and has a scale equal to the fiat equivalent of 30 to 150 BTC as per the daily volume of the DEX (BTC/ETH/PLU to £/€), with a transaction (card spending) in the first 20% volume (30 BTC) getting a 3% reward and with each 0.1 increase in volume resulting in a 0.0165 % decrease in rewards till 150 BTC where further rewards are set at 1%

Legal disclaimer: This is simply an opinion about Plutus.it — This is not financial advice and I’m not a financial advisor (I’m a client of Plutus.it and own PLU). Please make your own research.