- Nike’s partnership with the financial app Plutus allows users to receive up to 3% in purchase rewards. Rewards are delivered with an Ethereum-based token.
- Ethereum price could suffer in the short term due to possible increase in liquidations of long positions on Bitfinex.
A new partnership between Nike and the financial app Plutus will bring new benefits to its users. According to the official publication in Medium, the partnership will allow Plutus users of Premium or Pro accounts to earn up to 3% of rewards in cryptocurrencies for their purchases at Nike, Airbnb, Amazon, Lenovo, among others, using the Plutus card.
Users will receive their rewards on the financial app’s Ethereum-based token, called PLU. Introduced in February this year, the PLU is a token that Plutus users can convert to fiat money, exchange on the PlutusDEX with no fees, transfer to wallets and redeem for reward services like the one announced with Nike and the other Plutus partners. Plutus informed its users that they are rewarded in PLU and that the token:
(…) will be displayed on your Pluton Dashboard and will unlock additional fiat cashback at any of our online retail partners meaning users can earn double-dip rewards.
The financial app will also allow its users to stake the token. In a benefit program that has 5 levels, users will be able to unlock each level that will progressively have higher staking requirements. However, each level will offer greater rewards. Each level will allow users to unlock a new product category that they can purchase with their partners:
The more you use the Plutus Card, the faster you will earn PLU and rise up the levels, unlocking increasingly more fiat cashback opportunities. Whilst Level 1 has an incredibly low entry of 1 PLU; the highest, Level 5, carries a staking requirement of 5,000 PLU.
The higher levels or bonus levels (4 and 5) will allow users to earn up to 8% in rewards on top of the usual cash back. There will be factors that determine the percentage of reward received such as membership longevity, seasonality, among other factors. As can be seen in the image below, a £134 purchase will give a fiat return of £12.06 plus an 8% bonus which would make it £13.03. In addition, users will receive a 3% reward on the PLU token which will be added to purchases with the app.
Possible drop in Ethereum price in the short term
The rewards in Ethereum could accumulate to make an important extra profit. ETH has been one of the most volatil cryptocurrencies in the last 30 days. At the time of publication, ETH is priced at $239 and shows a 4.77% loss after Bitcoin’s crash yesterday.
Since the beginning of May, ETH has shown significant price gains, but also a high level of volatility that could increase in the short term. According to the trader Mayne, the number of long positions in Bitfinex reached an all-time high. If volatility continues and ETH falls due to a downward trend, the price of Ethereum could suffer due to the mass liquidations on Bitfinex.
This could lead Ethereum to reach new lows in the short term, but it will depend on the market performance and especially on the path that Bitcoin takes in the next days. A new rebound to the $8,000 range could be fatal for ETH’s price due to its correlation with BTC.
— Mayne (@Tradermayne) June 2, 2020
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