An increasing number of digital-asset startups are offering airline-like loyalty points as they seek to attract more devoted users, even though most have yet to define what the rewards actually entail. From a report: Loyalty programs have sprung up in response to a once-favorite marketing ploy -- the token airdrop -- in which projects give away crypto tokens to users. But the industry is rethinking this tack because many airdrops have done little to retain users while regulatory scrutiny has swelled over tokens themselves. The fledgling points programs already have their detractors, with many users bemoaning a lack of transparency -- most haven't explained how their points can be used -- while experts warn they may pose regulatory risks of their own.

The trend took off in November when new blockchain project Blast lured users by rewarding them with points. Even without a live blockchain, Blast has since attracted more than $1.3 billion worth of crypto from users who can only speculate what the points can be used for later. In a post thread on social-media platform X, Blast said only that the points can be redeemed on May 24. The crypto community has criticised the Blast points programme as a marketing ploy to get people to commit their tokens and refer new users. Some critics have even said the approach is reminiscent of a Ponzi scheme, which Blast's founder Tieshun Roquerre has denied.