It's the first time I've heard about "Prypto scratch cards", so I have to ask: who thought it's a good idea to rely on a third party website to access long-term Bitcoin storage?
Trusting a stranger to create a private key is bad enough, but at least that ensures you can access the funds without external help. A website to redeem funds is a terrible idea!
From what I can tell, they were not meant to be used as long-term storage.
They were meant to be used to either purchase cryptocurrency quickly & easily, or mainly to give away cryptocurrencies in a quick & effortless fashion.
Some altcoins used them for promotional giveaways, thus you'll see Prypto Cards of the weirdest shitcoins out there (like Worldcoin, Uro, Vertcoin, Max).
The concept of it would be for example like the following: A vendor/service/promoter buys 1000 of those cards, then hands them out at a physical event to interested users,
and those can at home go through the process of setting up a wallet for the specific coin and then get the coins sent to their securely created addresses through the website and codes on the cards.
There are similar services today working off the same idea.
CryptoVoucher (not an endorsement!) is a service that offers voucher codes for sale which then can be redeemed for a certain value of cryptocurrencies. They're somewhat popular on keyseller sites like MMOGA, eneba or G2Play.
Similar to the Crypto Scratch Cards, they rely on a code and a website interface.
Checking google for similar services, I've also found
Bit4coin (once again, no endorsement) which apparently operate under the same general business principle.
The practice of a code+webinterface combination seems to stick around, despite Prypto's CSCs being discontinued as of right now.
Prypto also did products that were meant as long term storage, but those aren't the Scratch Cards, they are "
Crypto Wallet Cards" and come in sets of two, one card you can break into half that contains two copies of your public key + QR code, and one card with the private key under a scratch-protection.
Those came unloaded and don't have any expiry date tied to them, since they have the actual private key on them.
However, here your second point comes to fruition, and you have to trust Prypto with generating and destroying the private keys, so you should probably think twice before loading any of those Wallet Cards.