Rumpel Labs Introduces Secondary Market For Loyalty Points

According to CoinDesk, Rumpel Labs, a startup specializing in tokenization infrastructure for loyalty points, has emerged from stealth mode with backing from prominent venture capital firms such as Dragonfly and Variant. The company aims to address the challenges associated with loyalty points distributed by decentralized finance (DeFi) and Web3 projects. Rumpel Labs CEO Kenton Prescott highlighted the importance of secondary markets for trading points, which would provide access for individuals looking to adjust their exposure to points. This would also enhance price discovery. The distribution of loyalty points has become a popular strategy in the crypto space, with nearly 50% of recent airdrops going to point holders. Projects like NFT marketplace Blur and Ethena’s USDe stablecoin have demonstrated the effectiveness of points programs in driving user engagement and growth. Airdrops, which involve distributing free tokens or coins to users, are commonly used by crypto companies to incentivize participation and attract new users. However, Prescott noted that there have been issues with unmet promises and lower-than-expected payouts from point programs. Additionally, some users seek increased exposure to these projects but lack the means to achieve it. Prescott emphasized the need for more formalized secondary marketplaces with better capital efficiency, deeper liquidity, and improved price discovery. He believes that such marketplaces would address the current issues by enabling effective transfer and trading of points. Rumpel Labs plans to launch its own points program in mid-September, aiming to provide a solution to these challenges.