According to former BitMEX CEO Arthur Hayes, the use of “points” is a more effective way of promoting cryptocurrencies compared to ICOs and income farming. In an essay titled “Points Guard,” Hayes highlighted the issues with ICOs, which can face regulatory scrutiny.
Some regulators see the sale of assets to retail investors as selling securities, requiring extensive measures to comply with regulations.
On the other hand, the aggressive distribution of tokens through yield farming can cause instability in their value, making users less likely to engage with the protocol. In contrast, “points” can serve as a new tactic for guerrilla marketing.
Instead of directly issuing tokens for using dApps, projects can offer points that can be converted into tokens upon the user’s request. This approach can generate more interest and incentivize users to participate in the project.
