Bookmark this page for updates on Eco;
Join the Eco App whitelist by clicking here.
First things first, to own the Eco.com address shows the seriousness and the deep pockets behind this project, in our view.
Right off the bat, this was a positive sign in my mind.
This does not look like yet another ‘Pi in the sky’ project that promises a pyramid reward structure to lure people to make a few people rich.
There is a vision and grand plan to take crypto mainstream with Eco.
And we love these visionary projects. Many of them may not succeed but their attempts will lay the groundwork for all future innovations in the blockchain.
What is Eco?
“Eco App is one simple balance that lets you spend, send, save and make money at the same time. You earn 5% cashback at the places you spend the most, and up to 5% on your balance the rest of the time. Soon, you’ll also be able to pay your bills and send money to your friends, all from the same place.”
Fundamental shift in crypto utility
There is a fundamental shift in the utility with Eco, in my opinion.
First users are rewarded for spending through the app with 5% cash back. Another, if you keep balance in the account – you continue to earn 5% on that balance.
It is a win-win situation, if this really takes off and if they can sustain the cash back and interest on balance rates, this could be a game changer.
Even if Eco cuts down the interest to 2% in the future, it will still be 200 times more than what you can expect to get from a National bank in the US (for reference, banks do not pay any interest but some pay around .01%).
Essentially, ECO is combining checking account and credit card like applications and making both of them better. In some cases, 100x better than their current model.
First, you get interest in the balance you maintain in your Eco App and second, you get 5% cash back on all your spending through the Eco App.
You will also get Eco points which will help you earn better interest as you continue to use the app.
Ingenious idea: Points as compensation
These Eco points will not be worthless like most loyalty points are.
Right now, as a customer, you get loyalty points in the form of miles or store reward points, etc.,
The company really has no incentive to increase the value of these points, in fact, they are incentivized to give you as little value as possible when you try to use these points.
Because, fundamentally, the executives of the company get paid in cash and stocks, not in loyalty points.
However, if their compensation were to be tied to their loyalty points (instead of stocks or cash incentives), would they do everything in their power to make these points more valuable in the real world.
I think they absolutely would.
This is exactly what Eco is doing differently.
They are tying their employee compensation to the Eco points, that is, much of their success depends, financially speaking, on the success of Eco points.
This is such a simple shift in looking at loyalty points and an amazing one. This is ingenious in my mind.
Why should you consider joining?
I am not sure about you but when I read the business model and who is behind it, my first question was ‘where do I sign up’.
I even chased down the team to get on their app as one of the beta users and I am happy to report that I am now able to use the Eco App. I will update this article about my experience with the app after I navigate more.
NOTE: The iOS app is only available to the US residents at this point.
Bookmark this page for more updates on Eco App.
– Community
This is one of the fastest growing communities at the moment, in my view. The Discord group is managed professionally and shillers are kicked out promptly.
If you have any questions, they are answered in depth.
– Synergy
Eco App is not looking to act as your checking account or credit card account, it is looking to replace the need for both.
This amazing synergy of connecting customers directly with the companies so that the middlemen are not getting richer at the expense of producer and consumer, and passing on those savings and spend back to the consumer is a great idea.
This has been tried and tested before, but mostly exploited by MLM type programs.
However, now with blockchain technology, this idea may actually work.
– Concerted effort to take crypto mainstream
I love some of the credit cards I use because I get cash back. However, I am probably paying a higher price because the seller marks up their product to cover the credit card charges (3% or so).
My bank sits on my money and pays me nothing.
However, if I can transact with the producer without the credit card or need for a bank account, well, that is a utility that can definitely help the Eco App to go viral.
Even if the Eco points have no value outside the app, it won’t phase me because I will still be able to benefit from the cash back and decent APY on my balance.
Eco App is not FDIC insured at the moment, however, for many people in the economy, FDIC insurance is just a buzzword, in my opinion, because they are either living on paycheck-to-paycheck or invested in stocks/crypto that may otherwise be not FDIC covered.
Given that the project is still in beta and yet to go public, I am not looking to keep more than a few hundred dollars at any time. That is my risk threshold at this point. Once I get comfortable, I might keep adding using the Dollar Cost Averaging model.
You do what works best for you.
– Backing from the biggest VCs
Even more impressive than the Eco.com address is the team behind it.
Project is backed by over 100 VCs including names like Andreesen Horowitz and Founders Fund. Look for yourself.
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Addressable market size
Addressable market size for Eco App is Trillions upon trillions, not billions.
That means, even a miniscule to modest success could push the project beyond the stratosphere, in my opinion.
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FREE to join and earn
Last but not the least, anyone can join the Eco community. You can be on their queue to be whitelisted.
You get the opportunity to speak to their team before you go live. This is the time when you can ask all your questions.
I have yet to come across a project that does one-on-one onboarding but the team wants to be sure that they are onboarding the right crowd to their beta project.
They will ask for your feedback so they can make the product better before their public launch.
Some potential drawbacks/questions that need to be addressed in the future (I am sure it is part of their future goals) are:
- How does the credit score get impacted if users use Eco App instead of credit cards directly?
- Will there be an option to pay the credit cards through Eco App, and if these payments earn you Eco points?
- Will the Eco points be useful to make purchases on the app in the future?
- Will Eco points become tradeable on crypto exchanges?
- Only US residents can register at the moment, is there a rollout plan for other countries?
Their discord group is:
“You need to head over to www.eco.com and fill out the quiz there. At the end of the quiz (if you did it right) there will be an invitation to the discord channel”
If you are considering to join the whitelist, consider using my referral code: https://refer.eco.com/u/Rkreddy
(Disclosure: When you join using my link, I will move from receiving 2.5% interest on my balance in Eco App to up to 5%, in addition to Eco points).
Thank you for reading and sharing this article. We appreciate you.
IMPORTANT DISCLAIMER
Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.
We do not endorse or guarantee the accuracy of the information and claims made.
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