Why loyalty is the killer app for blockchain
By Philip Shelper
Loyalty & Reward Co (my loyalty management consulting agency based in Sydney) have been providing consulting support to EZToken for the launch of EZToken Rewards. We worked together with Adam Posner, the CEO of The Point Of Loyalty, and the EZTeam to design the program, develop the brand and marketing collateral, develop the launch marketing and PR strategy, create the tax and legal documentation, design the App and website UX and manage investor communications.
Managing the investor communications involved spending lots of time on Telegram talking to investors who participated in the ICO. There was great deal of talk on Telegram about the need to be listed on more and more exchanges. The theory from investors was that that the more exchanges the token was listed on, the more new buyers could access it, and the more the price would rise.
While there is plenty of evidence to support this theory, especially from the bull market in late 2017/early 2018, in principle this theory doesn’t hold much weight, particularly in the current protracted bear market. For evidence, one just needs to look at the large number of cryptocurrencies and cryptotokens listed on multiple exchanges (including big exchanges) who have valuations that are down 90% from Feb 2018 highs.
There doesn’t appear to be a clear correlation between the number of exchange listings and the value, with market sentiment playing a much greater role in crypto prices.
This highlights the core challenge of many blockchain companies; they’ve created a cryptotoken to raise funds via ICO, but their product doesn’t really need a cryptotoken. To fix this they’ve put processes in place which forces users of their product to buy the cryptotoken, which ultimately delivers a poor customer experience.
These companies are the one’s who’s tokens will go to $0. They have to work hard and spend lots to get on multiple exchanges to remain relevant and maximise their exposure.
Blockchain loyalty companies like EZToken have an advantage, because this isn’t required. The cryptotoken is central to the operation of the company. Demand for the cryptotoken can be generated via members of the program when they transact and earn with participating retailers.
This type of demand is more stable and consistent, unlike trading which is driven by market sentiment. Imagine a blockchain company where most of the cryptotoken buying comes from members earning within the loyalty rewards program. Sustained, consistent demand delivering a solid price foundation.
When a blockchain loyalty company achieves this, it won’t matter if they’re on big exchanges or not. They can ultimately separate their cryptotoken from a dependence on exchange trading. They will be in a very different situation from all other blockchain companies. Market sentiment will no longer affect them. This is why Loyalty companies like EZToken, already with a full working product, will thrive and survive while other companies fail.
What is EZToken (EZT)?
EZToken is an ERC20 token hosted on the Ethereum blockchain platform. It is the reward currency for our blockchain loyalty program; EZToken Rewards. Ezpos Holding Pte. Ltd created 50 million EZToken and ran a four-round ICO in January 2018, selling 11.5m EZToken to raise over US$10m. Ezpos Holding have over 12,000 retailers in 19 countries currently using their EZPos Point of Sale system, and they are busy recruiting those retailers to participate in EZToken Rewards.
What is EZToken Rewards?
EZToken Rewards is a global rewards program which rewards members with EZToken for transacting with participating retailers, once they’ve joined the program. As the number of retailers and members within the program grows, the demand for EZToken increases. EZToken will play a central role in mainstreaming cryptocurrency adoption, by developing a large reward program base which acts as a middle layer, allowing for easy and rapid cryptocurrency transactions.
About Philip Shelper
Philip Shelper is a specialist loyalty consultant based in Sydney, Australia who obsesses about everything to do with loyalty and rewards. His company Loyalty & Reward Co are a leading loyalty consulting firm.
Phil is the author of Blockchain Loyalty: Disrupting loyalty and reinventing marketing using cryptocurrencies.
