RibbitRewards is a cheap, low volume altcoin with loads of potential which I have been slowly accumulating for the last week or two, and which continues to look like a great buy.
The idea behind this coin is simple but powerful: loyalty / reward points on the blockchain.
Peer-to-peer blockchain technology offers some wonderful advantages over current technology used by retailers for loyalty rewards. As a cross-company rewards scheme RibbitRewards will have all the advantages of something like Nectar points, a unified rewards scheme covering a range of major retailers, allowing users to earn and spend the same points at multiple retailers. But there would also be a few key differences. Users will be able to easily withdraw their points to independent wallets or to exchanges where they can buy and sell points for other digital currency or fiat, or to send them to friends and family. A fixed total supply of points also means that their value will ultimately reflect the size of the network, appreciating in price as the network grows.
The latest data from the COLLOQUY Loyalty Census shows that this is a growing market, but one that is sorely in need of the kind of revitalization that new technology can offer. Customers in the United states held 3.3 billion memberships in loyalty rewards programs in 2015 – an impressive 26% increase over the previous census in 2013. But at the same time, as the number of cards in consumers wallets has increased, each one has started to become devalued, with 2015 showing a 4.5% decrease in ‘active membership’ rates.
Add to this the fact that both loyalty rewards points and digital currencies are starting to catch the eye of the banking industry and you can start to see the potential. Just today Financial Review reports that the Commonwealth Bank of Australia is looking to create customer accounts capable of holding both rewards points and digital currencies alongside their regular balance:
“I have a view that a bank account will become a storer of value, rather than a storer of currency value, so why can’t a bank account be used to store loyalty points in the same way that you can use the slider on a Qantas website to decide whether you are paying with points or dollars?”
“We have multi-currency bank accounts today, with 15 currencies available on your phone instantly in real-time, so it is not that difficult for us to take that technology and make that a loyalty point store. It shouldn’t be that difficult for us to then add crypto-currencies to it, and whatever other means of payment transfers people might want.” Commonwealth bank of Australia’s Chief Information Officer David Whiteing told Financial Review
As a reward points scheme on the blockchain, RibbitRewards ticks both of these boxes for emerging trends being seriously examined by the banking industry. Not only does this seem to present a powerful confirmation that this coin is riding two of the most powerful trends in Fintech, but with KYC and AML compliance measures already in place over at the official RibbitRewards wallet it hints at potential future partnerships / integrations which could send the price skyrocketing.
At today’s prices RibbitRewards points has a market capitalization of around $125,000 for the 400 million coins sold and given away during the initial distribution. A further 600 million are held by company behind RibbitRewards. This reserve is being used for the development of a multi-currency online marketplace to showcase their technology and drive adoption, as well as incentivising new retailers to join the scheme.
Given the size of the potential market and the fact that, despite its small size, RibbitRewards is still, surprisingly, the leading player in the use of the blockchain for rewards points, this is screaming buy to me right now.
A successful launch of the marketplace.life multi-currency marketplace or the announcement of a major parternship deal could easily see orders of magnitude price gains.
On that basis I’m continuing to buy small amounts using profits from other investments, with a time horizon of 3-6 months before any serious re-evaluation (unless of course there are any major developments before then) and a target of >$1 million market capitalization on current supply, which means I will aim to start selling at roughly 8X gains on today’s price.
Charts, links, social feeds and active markets list for this coin can be found here: http://coinmarketcap.com/currencies/ribbitrewards/