Customized Loyalty Cryptocurrency For Big Brands?
With cryptocurrency popping up all over these days, it is no surprise that big brands may jump on the bandwagon with their own customized coin. A customized type of cryptocurreny from your favorite burger joint, soft drink company or chain supermarket around the corner? Wendell Davis, CEO of Humint, thinks its a possibility and a business opportunity.
For hardcore Bitcoiners, the emergence of so many altcoins is quite irritating at times. Bitcoin was the first and should remain the one and only in the minds of some. A few altcoins would be bearable but with some 70 altcoins existing or in development stages, it seems to be cryptocurrency overkill. Now imagine a separate coin from just about every big brand that you know?
Humint’s ‘Loyalty Coin’
Davis believes that the time is right for these branded altcoins and is willing to help businesses, big or small, to get in on the cryptocurrency wave. He sees the concept as sitting somewhere between fiat currency and brand loyalty programs – a loyalty coin of sorts. It can be mined in the traditional way and can be used to purchase more of the business’ products or trade them for customized coins from other brands.
But what about customers who are not miners? According to Davis, the customized coins would be given to customers in the same way as loyalty points. With the mining and trading going on behind the scene, customers would find that the value of their loyalty coins increases in time. Hopefully! This would allow them to purchase more goods, swap it for loyalty coins of other brands (should there be customers of these brands’ coins willing to do so) or even sell it if there is a demand for it.
Bitcoiners Not Convinced
The entire concept is just one too many maybes for the cryptocurrency pundits and techies. Unfortunately some do not share the same optimism as Davis. Bitcoin entrepreneur Erik Vorhees says he is highly skeptical about the concept. He wonders why anybody would want such a loyalty coin and says that if he received any he would convert it to Bitcoin instead.
However, Gabe Zichermann feels that there may be some substance to the concept. Zichermann chairs the Gamification Summit and is considered an authority in social marketing and loyalty programs. He believes that Humint‘s idea could satisfy a strong demand among business if it is promoted as a loyalty coin rather than just another altcoin.
What is also interesting to note is that a loyalty coin will have a single organization backing it – the brand behind the coin. Unlike Bitcoin with no single authority taking responsibility for it and prices being volatile, there may be more substance to the loyalty coin concept than is immediately evident.
However, there is no major brand coming out with anything of the sort – not just yet at least. Davis may in fact be sitting on a gold mine if at least one big brand buys into the idea. It would at least make those big businesses who are uncertain about Bitcoin into being more open to the cryptocurrency model if it was in the form of loyalty coin.
Whether you will find the cryptocurrency miners slaving away to get their hands on loyalty coins for their favorite burger joint remains to be seen. But even if it does not reach the point of fruition, Davis should be commended for thinking out of the box and looking at new ways to promote cryptocurrency.