Modern bounty hunters
Bounty Hunting during ICO
During the Initial Coin Offering (ICO) phase, bounties are offered by blockchain start-ups to either help market their product better, or to find and fix bugs to improve it.
Usually a set amount of tokens by the start-up will be set aside for bounties, or sometimes it can be in the form of Bitcoin or Ether.
These ICO bounties can be found on the respective start-ups’ ICO websites, or through other cryptocurrency-related forums.
Although there are many variations of bounties, often it is very easy to pick up, such as tweeting about the start-ups’ token, or sharing about them on Facebook.
You would then submit a link to your profile for the administrator to check, and once approved, the bounty will be rewarded to you. The above example is a simple marketing bounty.
Debugging bounties however, are relatively more complex and require some specialised skills.
Commonly posted bounties
Cryptocurrency bounties can differ greatly in terms of difficulty and reward.
It could be simple social media marketing like the example above, or very technical bounties meant for professionals in the field.
Listed below are some commonly posted cryptocurrency bounties:
- Debugging or bug-finding bounties
- Creating YouTube content for marketing bounties
- Copywriting or other written content marketing bounties
- Transcripting / translating bounties
- Forum signature bounties
- Facebook marketing bounties
- Twitter marketing bounties
Successful bounty campaigns
Some larger start-ups like Bancor, has had great success with bounty campaigns during the ICO phase. It has been reported that more than $1 million worth of Bancor tokens were given as rewards to bounty hunters.
That does not mean that small bounty campaigns are not worth going for. There are a number of smaller start-ups that offer a fair reward for bounty hunters.
Tips for a new bounty hunter
Ever since bounty campaigns started showing up, many have invested a significant chunk of their free time as a bounty hunter. It is a great way to earn some upcoming cryptocurrency/tokens without actively investing during the ICO. It is also a great marketing tool for start-ups looking to get their name out there.
However, not all bounties are great. In fact, many bounty campaigns have payouts that are simply not worth your time.
It is very important for users to do some research on the company that is running the bounty campaign.
Not all tokens or coins are valuable, there have been many ponzi schemes and ‘scamcoins’ that have crashed and burned, leaving the investors/bounty hunters with a crypto currency that is worth nothing.
Only get into a bounty campaign knowing that the token will be valuable in the future. Never get a business loan in Singapore solely to buy into an ICO that you do not have much knowledge of.
To prevent yourself from wasting your time or ending up with useless coins, there are some warning signs to be on the look out for.
If the start-up/company:
- Has no whitepaper whatsoever
- Uses Google ads or Instagram for marketing the ICO
- Only has a very small set for the bounty campaign (less than $80,000)
- Does not have a trustworthy team
- Does not have a clear motive/goal for their tokens and blockchain technology
If any of the above are true, you might want to do some additional research before getting involved in the campaign, or just skip it entirely.
Another tip if you want to convert your bounty tokens into Ether or Bitcoin, you should do so immediately, or a few weeks after the payout.
The bounties are usually paid out all at once to everyone, and value of the coin might fall rapidly because of all the bounty hunters that are converting the tokens into Ether of Bitcoins.