You may have noticed cryptocurrency developers offering bounties during an ICO for a new digital token. A bounty is a type of reward that is given to early adopters of a digital asset. Those who get involved with a cryptocurrency in its early stages can be given free tokens for helping to promote an ICO, or Initial Coin Offering. The goal of developers in awarding bounties is to leverage the community presence around their cryptocurrency for inexpensive coin promotion.
How to Get Involved With a Cryptocurrency Bounty Campaign
Collecting bounties for promoting a cryptocurrency can be both fun and rewarding. To ultimately participate in this type of campaign the first thing you must do is identify cryptocurrencies that are preparing to launch in the near future. Most of these digital coins will be funded by something called an ICO. The Initial Coin Offering is a period of weeks, months, or even a year when units of the coin are pre-sold to individuals in advance of the coin’s actual release. ICOs are how developers raise the capital they need to distribute their digital asset, establish its blockchain, and pay those involved in administrative work.
In the weeks leading up to an ICO, promotion is critical. If no one knows about the debut of a new token, the ICO will fail. Developers have learned that the best way to promote an ICO is by word of mouth in the cryptocurrency community. Message boards, forums, and social media groups are a primary way that information gets passed back and forth.
Bitcoin Talk is an example of one popular cryptocurrency forum. You can find announcements of upcoming ICOs on these forums. You can also follow one of the many cryptocurrency news websites for current information. What you want to keep an eye on are announcements of upcoming ICOs. When you see one, you can then visit the coin’s official website to see if bounties are being offered for promotional efforts. Most new token platforms will ask you to join a chat group or social media channel to stay apprised of the coin’s development and participate in bounty programs. You will generally be asked to provide a username, an email address, and a cryptocurrency wallet address if the bounties are paid on an existing blockchain like Ethereum.
How to Earn A Cryptocurrency Bounty
Once you have become active in the ICO of a cryptocurrency by offering to promote the sale of the token, the developers may assign bounties for completing specific tasks. The bounty you earn for completing these tasks is units of the new token. There are no set tasks which automatically claim a bounty when a token is launched. Each developer can decide which action they want to reward.
Content creation is rewarded by most nee cryptocurrencies. To collect this bounty, individuals must be able to write blogs or articles that are published on popular platforms. These articles usually detail the new token, explain what problem it intends to solve, and argue its potential as a good investment. Content creation is generally at the top of the bounty scale, earning the highest rewards.
Before you jump in and start writing an article for your blog in the hopes of claiming a bounty, there are a few things you need to know. Most bounties for content are subject to some restrictions. Developers will likely insist that the article in question is published where it will receive a lot of attention. So, if your blog doesn’t receive a lot of traffic, you probably won’t earn a bounty for writing an article about the upcoming ICO.
An alternative to publishing something on your own blog is to use a platform like Steemit. If you have a Steemit account, you can create blog articles that will appear in the Steemit news feed. There is always a chance that your article will go viral. Steemit is a platform that rewards the creators of good posts with Steem cryptocurrency. As a result, it is also a good place to catch up on the most recent crypto news.
You can also write articles that can be shared on Facebook or Twitter if you have enough friends and followers. If you have a LinkedIn account, try using the blog feature to create a post that can be shared with your connections. The more people you can get to view your content, the greater your bounty will be.
*** Here at CryptoSwede you will find information on Crypto Mining the different cryptocurrencies as well as the best cryptocurrency exchanges. You can trade or you can set up trading bots instead and then store the crypto on crypto wallets. Later, spend them using crypto debit cards!***
Social media posts can also earn cryptocurrency bounties. Again, this is only true if you have a lot of contacts. If you only have 100 followers on Twitter, a social media post will not earn you much. You might be able to build a fan page about your interest in cryptocurrency, attract a lot of followers, and go from there.
Some ICOs have offered bounties for translation services. Individuals translate posts and articles that have been made in one language into another. Bounties can be awarded for hosting local meetups to promote the ICO. Sometimes earning a bounty can be as simple as signing up for email updates from the developers. There really is no limit to the actions that may be rewarded by an ICO.
How are Cryptocurrency Bounties Paid?
Prior to an ICO, the developers of a new crypto token will announce their plans for the funds raised during the ICO. Most of them will provide a pie chart or other figures which reveal how funds will be allocated. A certain amount will be applied to development, another held in reserve, and so on. There will also be an amount set aside for bounties if these are used for promotion.
No one knows how much will be raised during an ICO, so percentages are used to show distribution. It is in the best interest of everyone that the ICO succeed, because the amount of money set aside for bounty rewards will go up in proportion to the overall crowdfunding effort. Let’s say that, in theory, an ICO raises $1 million Bitcoin. The developers have stated that 1% of the total amount raised will be given out in the form of bounties. This means that $10,000 worth of digital tokens are now distributed across all bounty campaigns. Each bounty campaign will be awarded a different slice of the pie. For example, content creation may earn a 25% share while social media posts earn a 10% share.
The last step involves actually rewarding those who have participated. Let’s use the about example to say that $2,500 worth of a new token is now going to be distributed among those who qualify for the content bounty. A total of 100 people have created content and qualified for a reward. Each of them will be given the equivalent of $25 in tokens for the new coin.
This is a very basic example of how bounties are paid to individuals upon the completion of an ICO. The official website of a new coin will be the best source of information regarding how much one can reasonably expect to earn for ICO promotion.
Why Bounties Might be Important to the Future of ICOs
Bounties offered by new cryptocurrencies could take on a greater importance in the next year or so. The reason for this is that some Internet giants have now forbid ICO advertising on their platforms. Google, Facebook, and Twitter no longer accept advertising for ICOs as of 2018. This could change, but it would probably require that crypto developers submit themselves to regulatory procedures from financial institutions like the Securities and Exchange Commission in the United States.
This means that cryptocurrency bounties could become more popular as developers look for a cost-effective way to promote the launch of their coins. Basically, offering a bounty amounts to a nothing-ventured-nothing-gained scenario. Bounties are only paid if an ICO is successful.