“Our mission is clear – to build culture on the blockchain." — Daniel Alegre, CEO Yuga Labs
Reality check. Blockchain-based virtual worlds lag in user engagement compared to Roblox's 200m monthly users (vs. Sandbox’s <100k monthly users), with Sandbox’ revenue declining –15% in Q2.
Punchline: It's back to the drawing board for IP holders like Yuga Labs and blockchain-based virtual worlds. They now need to figure out how to keep users – and the community – engaged. Their bets? Gaming – not hype.
Loyalty crisis. In 2022, US consumers averaged 16 loyalty memberships, but less than 50% were actively used. Fragmentation and closed ecosystems contribute to this issue.
Rethinking rewards. Brands like Starbucks, Alo Yoga, IWC, and others are experimenting with Web3-based loyalty experiences, using ownership, community, and gamification to boost engagement.
Zooming out: Loyalty is poised to be one of the key apps of Web3, as its shared data layer enables seamless collaborations across brand ecosystems. Loyalty+ could be an important step towards a universal, Web3 loyalty stack.
Punchline: The tug-of-war over spot Bitcoin ETF approval continues. The odds of approval in the coming months are as high as ever, with Bloomberg and J.P. Morgan expecting an approval as early as January 10, 2024.
