Crypto News

Feb 10, 2024

Crypto Startups Prefer Loyalty Points Over Airdrops

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Many crypto startups are shifting their focus from token airdrops to loyalty points as a means to foster user engagement. This transition comes in response to challenges faced by airdrops in maintaining long-term user interest and navigating regulatory issues.

Loyalty points offer a promising alternative, providing startups with a sustainable method to incentivize ongoing user interaction while adhering to regulatory requirements. Let's delve deeper into why this shift is happening and what it means for the crypto ecosystem.

Why Loyalty Points Are Gaining Popularity

Giving away free tokens through airdrops used to be a popular way for startups to attract users. But lately, people have been questioning how effective this really is for keeping users engaged in the long run. To address this, many startups are trying out loyalty point systems instead. These points reward users for sticking around and being active on the platform, making them more likely to stay.

How Loyalty Points Offer Compliance and Transparency

Governments are keeping a close eye on how crypto startups hand out tokens, leading to more rules and regulations. Loyalty points offer a way for startups to stay on the right side of the law while still giving users incentives to stay engaged. By focusing on loyalty points, startups can avoid legal trouble and build trust with their users.

How Loyalty Points Helps Projects Like Blast

Take Blast, for instance. Even though they don't have a working blockchain yet, they've managed to attract over $1.3 billion in investments by offering loyalty points. This shows that loyalty point systems can still get people excited and invested in a project, even without the technical stuff in place.

Clearing Concerns and Critiques about Loyalty Points

Some people worry that loyalty points won't reach as many users as airdrops do, or that it might not be clear how to use them. However, supporters of loyalty points believe these issues can be sorted out with clear communication and good management. This way, users can understand how to earn and use their points, keeping them engaged and happy.

The Promise of Loyalty Points in Crypto Startups

As the crypto world keeps changing, startups need to keep up. Loyalty points offer a promising way for them to do just that. By focusing on keeping users happy and following the rules, startups can build strong relationships with their users and keep growing.

Looking Forward

The move from airdrops to loyalty points shows how crypto startups are adapting to challenges and finding new ways to keep users engaged. With loyalty points, startups can stay on the right side of the law while still giving users incentives to stick around. It's an exciting time for the crypto world, and loyalty points are playing a big role in shaping its future.

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