The cryptocurrency community is eagerly awaiting the upcoming Bitcoin halving in about 48 hours with exchanges at the top of the list. Recently, one of the top cryptocurrency traders on Bitfinex, bearwhale, Joe007, vanished from the internet (closing both their Twitter and exchange leaderboard) after a reported $15 M loss in BTC’s latest run towards $10,000.
As the halving nears, there is an expected euphoria that more users will enter the space as exchange trading volumes gradually hike. As the new retail and institutional users and traders onboard the Bitcoin network, every exchange yearns to be their solution provider. While some crypto exchanges gain these users, keeping them on the platform poses a big challenge.
One tactic that is ever-growing across exchanges as highlighted by Joe007’s fame, who led the Bitfinex leaderboard, exchanges are increasingly adopting the “gamification” of the platforms to stay ahead of the curve in user adoption. In this article, we focus on the solutions “gamification” offers cryptocurrency exchanges heading into a possible bullish run post-halving.
A bullish look on adoption post-halving?
The crypto industry is slowly getting back to the 2017 bullish groove, as analysts and experienced traders are predicting a potential bull run in the next year that may well break the all-time highs. As we head into the next Bitcoin and crypto bull run, exchanges are focusing on innovating the best solutions to onboard new users.
Looking back at 2017’s bullish run that set BTC on a massive run to $19,800 and cryptocurrencies hitting ATH’s, one specific reason pointed to it was the massive growth in ICOs and related products. During this period, a massive surge in investments in ERC standard tokens was witnessed as the user adoption skyrocketed past the roof. Most of these ICOs offered some form of competition incentivizing the top traders hence boosting the overall use of their token.
Exchanges, on their part, employed a gamification element that opened up the crypto industry to traditional finance investors and average Joes alike enticing them to trade on the platform. Binance, is quite an interesting case, as it experienced explosive growth during the 2017 bull run as it integrated its leaderboard and offered token specific competitions in a bid to boost the user uptake on the platform. Other top exchanges that follow through a similar path include OKEx, Aluna.Social, Huobi, and even Brave browser (although it’s not an exchange)
As we head into yet another bullish period, will we see a similar spike in user adoption of cryptocurrencies brought about by possible gamification across the cryptocurrency field?
“Gamification is simply the use of incentives and rewards to attract and encourage engagement on a platform.”
Gamification solutions across exchanges
Without a doubt Binance is leading the revolution in the crypto space with the gamification on its platform. Over the years the exchange has completed tens of competitions on the platform enticing users towards the platform. The exchange disbursed over 72,000 USDT (~$72,000) to each of its top affiliates last month in its Binance Futures affiliates program in a bid to ramp up users on to the platform.
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Binance leads the crypto world in gamification of its platform but is currently faces fierce competition from well-established exchanges such as OKEx and other crypto companies such as Huobi, HedgeTrade, and Aluna.Social, who provide their own leaderboard rewarding the top traders daily.
In a bid to boost the overall adoption rates of Bitcoin and overall trading on exchanges gamification provides a quick and profitable solution for exchanges in the blockchain industry to extend their market share.
Should exchanges move towards gamification?
As seen through Binance’s massive growth pattern since 2017, gamification is one of the most important business strategies that a starting crypto exchange could offer in a bid to push for mass adoption. So what are some of the benefits of gamifying a crypto trading platform?
- User retention: As discussed above, user adoption and user retention are the top reasons why a Bitcoin/crypto exchange should focus on rewarding systems and affiliate programs. Rewards offered to the customers who have the best trades or top trading customers set up a game that makes traders trade more.
- Instant gratification: Industries across the world including airlines and clothing industries set up gamification tactics in a bid to entice customers to keep buying from them or buy more. The users are then rewarded with loyalty points (or in crypto exchanges, tokens) which can then be redeemed readily on the platform on trading fees among a slew of benefits.
- Trading knowledge experience: Well some analysts have also argued that gamification can bring about increased experience in trading in cryptocurrencies to novices and they also earn in the process.
- Direct communication channel: Other exchanges Aluna.Social being a key example gives users a chat platform to interact and share trading strategies in a bid to retain users.
The continued calls of a bull market in the coming year following the Bitcoin halving event gives an opportune time for exchanges to onboard the retail users into crypto. Those exchanges that offer the best reward systems and affiliate programs such as Binance, Aluna.Social, HedgeTrade, and OKEx will likely lead the next mass wave of user adoption in the crypto industry.