ICO Bounties Introduction
If you’re part of a new startup business and wondering how to create a marketing strategy for an ICO, make sure ICO bounties become a priority.
Bounty campaigns or bounty programs are relatively inexpensive in terms of cost and hold great benefits. A successful bounty campaign can greatly enhance the chances of your ICO being seen by the greater community or improve the overall functionality of your ICO site.
What is an ICO Bounty Campaign?
- An ICO bounty campaign is a reward system put in place by a startup entering their ICO.
- Bounty campaigns are a non-traditional method of marketing and PR. Their primary focus is digital marketing, not by creating big advertising campaigns, but by using members of the online community.
Bounty campaigns use the token economy as an incentive for individuals to complete promotional tasks or to report bugs and viruses on a site, which can have a huge effect on improving your ICO campaign.
How do Bounty Campaigns Work?
Bounty programs all have their own individual rules and methods of awarding their tokens, but the structure is simple:
- Members of the online community are set reward-based tasks.
- Anyone that fulfils tasks to increase ICO awareness or improve functionality as outlined by the startup will receive a stake.
- Once the ICO starts, stakes are converted into tokens.
What are the Benefits of Hosting a Bounty Campaign?
- Create large scale ICO awareness within the community
- Generate lots of website traffic
- Participators could convert into loyal followers
- Inexpensive to run
Who can be a Participator in a Bounty Campaign?
Anyone that completes a task, but usually, cryptocurrency influencers.
- Some startups hosting bounty campaigns require participators to have a minimum amount of followers. This could range anywhere from 200 to 5,000.
Different tiers are created to identify how many stakes a participator will receive.
- Generally, the more followers or friends a participator has, will result in them receiving bigger stakes for the posts, videos or blogs they create and publish.
Prior to becoming a bounty hunter, participators will generally have read a guide to investing in an ICO. Once they have found the right ICO to invest in, they will look to participate in its bounty program
How to Find a Bounty Campaign
- The easiest way to find an ICO bounty campaign is through the bitcointalk.org forum or by searching the right keywords on Google directly
- On bitcointalk.org, posts related to bounties are usually found in the section ‘Alternate cryptocurrencies’ > ‘Altcoin Discussion’ > ‘Bounties (Altcoins)’
How can a Participator Contribute to a Bounty Campaign?
Participators generally contribute by creating blog posts about the startup, posting on social media, making educational videos about the business, translating and reporting bugs.
Types of Bounties
Blog post, Media (video/podcast/newsletter etc)
- Usually, the amount of tokens or stakes you receive depend on the quality of the content, how long the content is, how many links to the ICO it has and how many overall views it receives.
Facebook and Twitter campaign example
- Follow the startup on Facebook/Twitter and repost/retweet their posts/tweets using specific hashtags or share the post to public pages and open groups.
- Startups usually require participators to log in through an account on their website to allow for post tracking.
- Using native speakers to translate a white paper or a web page
Bitcointalk signature bounties
- Get participators to add the official signature of the startup hosting the ICO to their bitcointalk profile page. They must agree to post a certain amount of times per week in order to receive a stake or token.
- The participators must be at least a junior member on bitcointalk.
How Many Tokens Should be Allocated to a Bounty Campaign?
There is no set answer to this question. Ideally, startups should only put a very small amount of tokens aside for the bounty campaign.
Deciding the amount of tokens to be allocated to an ICO bounty campaign is a crucial part of the marketing strategy for an ICO
- If 2% of all tokens will be allocated. How many of these will be split between
- Blogs and Media
- Bounty Referral Program
What are the Rules Behind Hosting a Bounty Campaign?
Each bounty campaign may be different, but general rules can include:
- Bounty campaign start and finish date
- Token allowance
- Age restrictions to take part
- How and when you get your bounties
- Rules for individual types of bounties (Facebook, Twitter, Bitcointalk.org etc)
ICO bounty campaign controversy
ICO bounties have recently been targeted by United States Securities and Exchange Commission (SEC) due to an ICO’s nature that offers tokens as security to participators.
- The SEC identifies that if a profit is made by the doing of a promoter or third party during a project, it is labeled as an investment contract.
- Bounty program tokens therefore are considered tokens but have not been registered as so.
ICO bounties also lack recognisability with regards to marketing communication.
- Participators of bounty campaigns who are taking part for the sole purpose of collecting a free token and not being a genuine, active and excited member of the community of stakeholders are misleading other members of the community.
- While the Federal Trade Commission endorsement guide does provide information around disclosing product or service information between companies advertising and people endorsing them, It doesn’t yet provide information regarding digital tokens as a payment to the endorser.
While some participators of ICO bounties are involved purely to earn fast cash, others are genuinely excited for the startup to complete its ICO. Either way, the variation of startups using bounty campaigns means there is an opportunity for everyone to take part.