With the popularity of crypto token airdrops fading amidst regulatory concerns, digital asset startups are increasingly implementing loyalty points programs to attract and retain users, Bloomberg reported Thursday.Â
Projects like Blast, Manta, and Mantle have introduced points schemes that reward engagement, following the apparent success of Blast’s $1.3 billion points haul last November. While gamifying protocols can widen adoption, these programs have faced criticism for their lack of transparency and uncertainty around redeeming points.
Unlike tokens, loyalty points are not on-chain, making them less transparent and revocable by the issuer, per the report. This raises questions around evaluating market size and points valuation. Regulatory classification also remains ambiguous, carrying implications for securities law compliance.
The shift towards points represents a new marketing approach in crypto, despite potential pitfalls. Crypto.com’s CRO token shed 22% last year following cuts to its loyalty program rewards, highlighting risks. As adoption expands, startups must balance innovation with transparency regarding points usage and redemption.
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