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Being a member of Bitcointalk for more than 6 years, I am quite a bit bothered by what happening in the bounty section for the past few months. This is what I have noticed:
1. A lot of scam projects are creating bounty campaigns and ANN threads. Once the bounty campaign is finished, they vanish all of a sudden without paying the bounty hunters and leaving the investors in limbo.
2. The quality of the bounty managers have gone down. Junior level members are acting as bounty managers and they often don't update the spreadsheets and sometimes indulge in cheating by enrolling proxy accounts to the campaign.
3. Large number of newbs are signing up for bounty campaigns, often enrolling using purchased Facebook / Twitter accounts (esp. in Social media bounty). The quality of posts being done by the bounty campaign participants have gone down quite a lot during the last few months.
4. Even those bounties which pay end up listing at 80% or 90% discount to their original prices and in the end the honest bounty campaign participants end up with very small rewards. On the other hand, those signing up with 10-12 multiple accounts end up with sizeable rewards. And it is the latter category, which indulges in token dumping.
5. There is no incentive to hold on to the tokens, as a majority of the ICO promoters dump their tokens in the market and vanish. If you check, the vast majority of the listed ICOs are in a dormant or defunct state now.
I have a few suggestions to resolve some of the issues, before the issues go out of hand.
1. There should be a requirement that if anyone want to post an ANN in Bitcointalk, he must deposit 0.1% of the total amount (of the softcap) in an escrow account. For example, if a project is planning to raise $50,000,000 from the investors, then before creating the ANN thread the promoters must deposit $50,000 in either BTC or ETH to an escrow account held by the Bitcointalk staff. If the soft-cap is smaller, like $500,000 then the escrow amount should be 0.1% of that, i.e $500. If the promoters vanish, then this amount should be forfeited. Also, if the promoters go back on their promises once the tokens are listed, then this escrow amount should be frozen and may be (partially) released only if they achieve the objectives which they had promised earlier.
2. There should be a list of approved bounty managers and those outside this list should not be allowed to act in this role. There are a lot of trusted bounty managers here, like Yahoo62278 and Lutpin. I don't think that newbs should be given priority over them.
3. In order to participate in a bounty campaign, it should be mandatory for all the users to post their ETH address in the "Location" field in the profile. I have noticed a large number of spammers using someone else's BTT account and their own ETH address to enroll in to social media bounties. This step will put and end to the practise and will weed out the spammers.
4. All the bounty campaign participants must be carefully screened before the payout. In order to prevent token dumping, a few steps can be taken. Since the bounty reward is 1% to 3% of the total amount, the promoters themselves can purchase this portion from the exchanges. Or they can make the bounty payments in BTC/ETH. There should also be a condition that the promoters should hold on to 90% of their tokens for at least 12 months. (Because I have noticed that it is the promoters who do dumping in the vast majority of the cases, and they blame it on the bounty hunters).
5. KYC must be mandatory for ICO promoters and bounty campaign managers (unless they are on level 2 DT). If this is done, then the scammers won't be able to set up multiple fake ICOs.
I am posting this because now the real impact is becoming obvious. Experienced users are staying away from bounty campaigns and even very promising ICOs are getting listed at heavily-discounted rates. This can't go on forever.
Good ICOs need to be protected from the negativity in the market created by the fake ICOs.
Honest bounty hunters needs to be protected from the cheaters
Properly run bounty campaigns and airdrops should be appreciated and differentiated from the poorly managed ones.
1. A lot of scam projects are creating bounty campaigns and ANN threads. Once the bounty campaign is finished, they vanish all of a sudden without paying the bounty hunters and leaving the investors in limbo.
2. The quality of the bounty managers have gone down. Junior level members are acting as bounty managers and they often don't update the spreadsheets and sometimes indulge in cheating by enrolling proxy accounts to the campaign.
3. Large number of newbs are signing up for bounty campaigns, often enrolling using purchased Facebook / Twitter accounts (esp. in Social media bounty). The quality of posts being done by the bounty campaign participants have gone down quite a lot during the last few months.
4. Even those bounties which pay end up listing at 80% or 90% discount to their original prices and in the end the honest bounty campaign participants end up with very small rewards. On the other hand, those signing up with 10-12 multiple accounts end up with sizeable rewards. And it is the latter category, which indulges in token dumping.
5. There is no incentive to hold on to the tokens, as a majority of the ICO promoters dump their tokens in the market and vanish. If you check, the vast majority of the listed ICOs are in a dormant or defunct state now.
I have a few suggestions to resolve some of the issues, before the issues go out of hand.
1. There should be a requirement that if anyone want to post an ANN in Bitcointalk, he must deposit 0.1% of the total amount (of the softcap) in an escrow account. For example, if a project is planning to raise $50,000,000 from the investors, then before creating the ANN thread the promoters must deposit $50,000 in either BTC or ETH to an escrow account held by the Bitcointalk staff. If the soft-cap is smaller, like $500,000 then the escrow amount should be 0.1% of that, i.e $500. If the promoters vanish, then this amount should be forfeited. Also, if the promoters go back on their promises once the tokens are listed, then this escrow amount should be frozen and may be (partially) released only if they achieve the objectives which they had promised earlier.
2. There should be a list of approved bounty managers and those outside this list should not be allowed to act in this role. There are a lot of trusted bounty managers here, like Yahoo62278 and Lutpin. I don't think that newbs should be given priority over them.
3. In order to participate in a bounty campaign, it should be mandatory for all the users to post their ETH address in the "Location" field in the profile. I have noticed a large number of spammers using someone else's BTT account and their own ETH address to enroll in to social media bounties. This step will put and end to the practise and will weed out the spammers.
4. All the bounty campaign participants must be carefully screened before the payout. In order to prevent token dumping, a few steps can be taken. Since the bounty reward is 1% to 3% of the total amount, the promoters themselves can purchase this portion from the exchanges. Or they can make the bounty payments in BTC/ETH. There should also be a condition that the promoters should hold on to 90% of their tokens for at least 12 months. (Because I have noticed that it is the promoters who do dumping in the vast majority of the cases, and they blame it on the bounty hunters).
5. KYC must be mandatory for ICO promoters and bounty campaign managers (unless they are on level 2 DT). If this is done, then the scammers won't be able to set up multiple fake ICOs.
I am posting this because now the real impact is becoming obvious. Experienced users are staying away from bounty campaigns and even very promising ICOs are getting listed at heavily-discounted rates. This can't go on forever.
Good ICOs need to be protected from the negativity in the market created by the fake ICOs.
Honest bounty hunters needs to be protected from the cheaters
Properly run bounty campaigns and airdrops should be appreciated and differentiated from the poorly managed ones.
You have described what every second bounty hunter who has worked on more than 40 projects knows. This is not some kind of discovery, but only a banal statement of facts. You should have called the theme "Farewell to new bounty hunters!".
