ETHENA IS OFFERING 5% CASHBACK AND 6% SAVINGS WHILE OTHER CRYPTO CARDS COLLAPSE 🚨👀💳
Ethena and Ethena Pay just launched a consumer neobank on Avalanche with an official Visa debit card. 📱🌐
The headline numbers sound incredible: a 6% annual dollar savings rate paid daily, 5% card spend cashback, and free global fiat onramps with personal European IBANs. 🏦✨
Behind the marketing sits an industry graveyard. Offering high cashback on debit cards has proven to be a financial trap that pushes most crypto neobanks toward collapse. 📉🩸
The broken math of crypto cards:
💳 Merchant debit interchange fees only pay 1.2% to 1.8% in the US, and are legally capped at 0.2% to 0.3% across Europe.
💸 Paying 3% to 5% cashback means the card issuer loses 2% to 4% in pure cash on every single purchase.
Past giants like Crypto.com and Wirex burned millions in venture capital to fund rewards, only to gut cashbacks when money ran dry. Other programs shut down entirely.
The only major profitable outlier is RedotPay, moving over $500M in monthly volume ($7.2B total). But RedotPay succeeded by doing the exact opposite of a giveaway: charging $10 to $100 card fees, 1.2% transaction fees, and offering almost zero cashback subsidies. 🏛️💼
The Ethena Foundation recently proposed a 95% net revenue fee switch to buy back $ENA once USDe supply hits $7.5B. Ethena Pay is the consumer Trojan horse built to bring in the remaining $3.3B in deposits needed to trigger those token buybacks. 💎📈
So why is Ethena jumping into this money-losing business with a massive 6% savings yield and 5% cashback? 🎯💡 👇
#Ethena #CryptoCards #DeFi #Avalanche #ENA
Ethena and Ethena Pay just launched a consumer neobank on Avalanche with an official Visa debit card. 📱🌐
The headline numbers sound incredible: a 6% annual dollar savings rate paid daily, 5% card spend cashback, and free global fiat onramps with personal European IBANs. 🏦✨
Behind the marketing sits an industry graveyard. Offering high cashback on debit cards has proven to be a financial trap that pushes most crypto neobanks toward collapse. 📉🩸
The broken math of crypto cards:
💳 Merchant debit interchange fees only pay 1.2% to 1.8% in the US, and are legally capped at 0.2% to 0.3% across Europe.
💸 Paying 3% to 5% cashback means the card issuer loses 2% to 4% in pure cash on every single purchase.
Past giants like Crypto.com and Wirex burned millions in venture capital to fund rewards, only to gut cashbacks when money ran dry. Other programs shut down entirely.
The only major profitable outlier is RedotPay, moving over $500M in monthly volume ($7.2B total). But RedotPay succeeded by doing the exact opposite of a giveaway: charging $10 to $100 card fees, 1.2% transaction fees, and offering almost zero cashback subsidies. 🏛️💼
The Ethena Foundation recently proposed a 95% net revenue fee switch to buy back $ENA once USDe supply hits $7.5B. Ethena Pay is the consumer Trojan horse built to bring in the remaining $3.3B in deposits needed to trigger those token buybacks. 💎📈
So why is Ethena jumping into this money-losing business with a massive 6% savings yield and 5% cashback? 🎯💡 👇
#Ethena #CryptoCards #DeFi #Avalanche #ENA
