Why do points get a bad rep?
The surge in popularity of tokens being rewarded to loyal users and airdrop hunters has created life-changing opportunities. Users felt that their efforts and luck had paid off when they received massive token issuances. However, with points, the dynamic is different. Users are essentially playing by the rules, hoping that their loyalty will be rewarded with tokens someday. It’s almost like waiting for a promise that may never come to fruition. Points are essentially IOUs that may never be converted into actual tokens. They have no trading value and exist as mere numbers on a screen. The uncertain nature of points can lead to disappointment and frustration for users.
FriendTech: Points but no airdrop
FriendTech, a project that dropped points to its users based on an allocation system, initially saw success. However, as time went on, trading volume declined, and daily transactions dropped drastically. The project’s failure to deliver an airdrop despite expectations resulted in losses for those who invested in the hope of a greater allocation.
Why do VCs like points?
While retail investors may have reservations about points, VCs find them appealing due to their flexibility. Unlike tokens, points can be easily adjusted and fine-tuned without the complexities associated with token issuance. The ability to test assumptions without the hassle of launching tokens is a significant advantage for VC firms. Points also help mitigate some regulatory risks associated with airdrops. By lacking transferable value, points attract less attention from regulatory authorities. Additionally, points can be used to attract customers and create publicity for projects. VCs, however, acknowledge that the sustainability of points is uncertain. It remains to be seen whether points are just a temporary trend in the crypto world or a long-term feature. While they may continue to be used to incentivize customers, attracting and retaining users will eventually require additional features beyond points.
Overall, points have divided the crypto community, with some eagerly embracing them and others expressing skepticism. The future of points and their role in the crypto ecosystem will depend on their ability to provide real value and meet the expectations of users and investors.