Loyalty Point Systems Replace Token Airdrops in Crypto Startups
Many crypto startups are shifting their focus from token airdrops to loyalty point systems as a way to engage users. Token airdrops, which involved distributing free crypto tokens to users, have proven to be ineffective in retaining users and have faced increased regulatory scrutiny.
However, the introduction of loyalty programs has been met with criticism due to a lack of clarity on how these points can be redeemed. This has led to user dissatisfaction and concerns about potential regulatory issues.
Blast: A Notable Example
One example of this trend is Blast, a blockchain project that has generated significant interest by offering points to its users. Despite not having an operational blockchain, Blast has attracted over $1.3 billion in crypto investments. However, details on how to utilize these accumulated points will only be revealed on May 24.
Critics argue that loyalty points lack the distribution capacity of token airdrops and that their operations are less transparent since most loyalty programs are not blockchain-based. This makes it challenging to assess the overall scale and impact of these loyalty points in the market.
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