Crypto startups are changing their marketing strategies and offering loyalty points to their users, instead of giving away free tokens. This is a response to the regulatory challenges and the low retention rates of token airdrops, which were once a popular way to promote new crypto projects.
Loyalty points are rewards that users can earn by using the services or products of a crypto startup, such as a blockchain platform, a trading app, or a digital wallet. The points can be redeemed for various benefits, such as discounts, access, or privileges. However, unlike tokens, loyalty points are not recorded on the blockchain and do not have a clear value or use case.
According to a report by Bloomberg, loyalty points programs have gained attention and investment in the crypto space, as they aim to attract and engage more users. One of the examples is Blast, a new blockchain project that launched in November and offered points to users who deposited their crypto assets on its platform. Blast has attracted over $1.3 billion worth of crypto from users, even though it has not explained how the points can be used.
Blast's success has inspired other crypto startups, such as Manta and Mantle, to launch their own loyalty points programs. These startups have also seen a significant growth in the total value of crypto assets sent to their platforms, according to data from L2beat.
However, loyalty points programs also face criticism and challenges, such as the lack of transparency and the regulatory risks. Many users have complained that the points programs are vague and misleading, and that they do not know what the points can be used for. Moreover, the legal status of loyalty points is uncertain, and they may be subject to securities laws or consumer protection laws.
Loyalty points programs are a new trend in the crypto space, and they reflect the changing needs and preferences of the users and the regulators. Crypto startups are trying to find more sustainable and innovative ways to market their products and services, and to create more value and loyalty for their users.