earticle

영어

Platforms often adopt a “two-stage” cryptocurrency-based loyalty program (CBLP) design, awarding loyalty points with stable value and allowing the conversion into volatile and liquid coins. We study how the two-stage CBLP design improves users’ participation and the moderating role of the cryptocurrency’s price. Using a data set from a ride-hailing platform that suspended users’ point-to-coin conversion until 14 weeks after the start of its CBLP, we employ a difference-in-differences approach and find that awarding points enhances users’ participation, while this effect does not reduce after the conversion. We further find that, after the conversion, the loyalty effect becomes more prominent when the cryptocurrency appreciates. Notably, however, before the conversion, the loyalty effect diminishes with the cryptocurrency’s appreciation, contrary to the platforms’ general expectations.