I’ve been recently interested in DeFi and have long been interested in cryptocurrency vs. fiat money. One thing that I have always cautioned people about cryptocurrencies is their risk that they could go to zero, and as such, I’ve only ever mined or traded crypto that I held, never invested any of my fiat dollars (the exception to this rule is that I have recently exchanged some fiat for stablecoins as they are pegged to the fiat dollar in order to get higher returns than the bank or even stock market). I wouldn’t feel right, especially with crypto at an all time high, if I changed my tune and said to the people I care about that they should go and buy bitcoin, or invest in crypto (however I’ve used some of what I’ve cashed out, to buy the dip on certain bitcoin ETFs traded on the Toronto Stock Exchange in my Tax Free Savings Account).
With my foray into DeFi and yield farming, I’ve decided that since what would have been sitting in a cold wallet is now earning me additional crypto, I might as well share this “bonus” with those closest with me.
My decided introduction to the world of crypto:
I recently wrestled with the idea of setting people up with their own non-custodial wallets like Trust Wallet. I could have easily created a bunch of new wallets and deposited the funds an handed the seed phrases over to whoever I wanted, but felt this was way too much work on my end and wouldn’t really get anyone to adopt crypto and it isn’t super easy (yet) to do anything with that crypto. Even if I had them set up their own wallet, who knows how many would simply not remember their seed phrase and lose the funds.
I decided in the end to use an already established ecosystem Crypto.com and CRO to facilitate this social experiment. I’ve tested this out with a couple of people already and we’ve worked out the kinks. Effectively, I am facilitating buying them a pre-paid Visa debit card by sending them funds through the app and having them stake the $500 worth of CRO that I sent towards the Ruby level card.
For full transparancy, in our testing so far, this entails:
- Downloading the Crypto.com app via a referral code I send https://crypto.com/app/x5q5p3jzx8
- Verifying identity for KYC (Scan drivers license and facial recognition)
- Letting me know what phone number they registered with and me sending the funds to them in the app (this was previously me asking for their wallet address and memo but the new way is much easier). There might be a way for me to simply skip the first step and just sending them the funds to their phone number which apparently sends them a SMS message. Will try this next time – any volunteers?
- After receiving the funds and having their identity verified, stake the $500 worth of CRO that I sent towards the Ruby card for 6 months and confirm shipping address etc.
- I recover $25 worth of CRO as a referral and they also have an extra $25 to spend once the card arrives. They should also earn 6% on the staked CRO, which is about $2.50 per month.
- It is my hope that they will use the card, but if not, after the 6 months they should have ~$540 to spend after unstaking if crypto is not for them (can buy gift cards, or withdraw as fiat directly in the app). It’s also worthwhile to note that there is a definite possibility that the value of the CRO could wildly fluxuate in those 6 months. Maybe at the end it’s only worth $100, or maybe it’s over $1000. Maybe they convert it to bitcoin, ethereum, or another crypto they are interested in. Maybe they go all in and upgrade to one of the higher tier cards. I don’t really care, nor do I expect anything in return after this (technically they don’t even have to apply for the card but then we both lose out the extra $CRO). My goal is to introduce more people to the exciting and interesting world of cryptocurrencies in an attempt to increase awareness and adoption for a better tomorrow; a hedge against our cash, which is trash.
The results so far:
I’ve talked to 3 people about this idea with mixed reviews. The main sentiment was, “what’s the catch?”, which is what prompted me to write this post to explain my reasoning. It’s hard to convey it as a gift, as they do have to jump through a few hoops to do this, but at the same time it does not directly benefit me, other than I am bringning more users into the ecosystem that I have stake in. I liken it to if I made some money in the stock market and decided to give a few shares to that person. This is just way easier, and crypto is something I so strongly believe in that I am willing to give some of mine just to get the people I care about to be involved. Maybe this is the wrong way to go about it, but I am not forcing it on anyone, just the offer is open to my loved ones to share in my crypto journey.
If you are not my friend or family member, you can still use my referral code: https://crypto.com/app/x5q5p3jzx8 however I won’t be sending you $500 worth of CRO. Instead, I would be more than happy to split the difference and send you half of my referral bonus ~$12.50 worth of CRO if you end up applying for the Ruby card or higher – just post a comment here so we can get in touch.