A little over two weeks ago, I created a post on here, asking what bounty hunters look for in a bounty campaign. You can view that post
here if interested.
I received a significant number of responses with valuable insight on what key components bounty hunters look for before participating in a bounty campaign. However, after reading all the responses and striking conversation with some of the users, I realized that the majority of bounty hunters are unaware of why some bounty campaigns, and startups, are structured the way they are.
For example, about 90% of bounty hunters on here stated that a bounty campaign that requires KYC is an instant red flag, with most just completely ignoring it instantly. I understand why this is the case, but what I don't think bounty hunters understand is why some startups require it, and some don't.
So, I wanted to take some time out to explain from a bounty manager perspective, and now a member of a new startup perspective, why these campaigns have these certain requirements and are structured the way they are.
PLEASE NOTE: This post doesn't reflect all bounty campaigns accurately as everyone varies by startup. Also, this post is assuming the bounty campaign and the startup behind it is legitimate and not a scam![/b]
Know Your Customer (KYC) I'm not an expert on this by no means, but I'd be cautious of a project that doesn't require KYC in order to participate in their bounty campaign. Different jurisdictions have provided regulatory guidance recently and activities that used to be allowed in this industry in the past 1-2 years are now not allowed anymore. These projects that don't require KYC are either not aware, are not being careful, and/or have not done their due diligence. Those who do require KYC, require it because they've taken the necessary steps in order to determine who can and can't participate in their crowdsale/bounty campaign.
I understand that performing KYC for any project is concerning as you are giving up your personal information to an unknown startup, however, it is very necessary if that startup wants to legally abide by all the jurisdictions and regulations.
So my advice is that you get to know the team and determine if they are trustworthy before even participating in the bounty campaign. Join their Telegram Group and strike up a conversation on KYC and why they determined it to be required or not required. Their responses on this topic will help you validate their credibility and trustworthiness in my mind.
Bounty Campaign Reward Pool (KYC) Obviously, the higher the reward is, the more enticing it is to participate in hopes of claiming that reward. However, I noticed a large number of hunters look at the total tokens allocated to the bounty campaign before participating. This makes sense if the bounty campaign is staked-based, because then the total tokens allocated factors in to how many tokens will be rewarded for each completed task. However, a lot of hunters stated that the reward pool matters for even fixed-based campaigns.
My input on all this is that this shouldn't be a determining factor like it is for most. From my experience, startups will try to offer the most tokens as possible upon creating a bounty campaign because they know that the more tokens normally results in the most participation. However, there has to be a limit to the number of tokens offered by each startup.
If a bounty campaign has a smaller reward pool than most, it is most likely due to one of the following reasons:
* They plan on holding at least one or more bounty campaigns or contests
* They want to limit the effect of the everyone dumping the token once it hits the market
I'd be cautious about big reward pools because that usually results in a large dump as soon as the token hits the market. Bounty hunters tend to sell as soon as they can so the more tokens rewarded, the more tokens that will be dumped. So if you want to hold the tokens you receive, you may want to look for those that hand out less tokens. I know it sounds odd, but it just makes that project more valuable.
Reward Per Task Again, most startups want to reward you as much as possible for a completed task, however, they also want to maximize the participation received as well. In order to do this, rewards must be reasonable unless there will be little participation with a large pot of rewards. However, if the task is a content related task, and the quality of work is more than exceptional, the team will most likely reward you more than stated on the bounty campaign. Any bounty hunter that is willing to spend the time to create a high quality piece of work will definitely be generously rewarded. So if you are looking for a high reward, I recommend taking the time out to do the necessary research and due diligence so that you can create value for the startup.
Unknown Distribution Date Having a known distribution date is a big bonus for bounty hunters for reassurance purposes, however, if there isn't a set distribution date, I recommend learning why before you just ignore the bounty campaign.
Many startups hold bounty campaigns in order to increase their exposure for their crowdsale. Those that hold a bounty campaign during their pre-sale or private sale most likely won't have a distribution date because they don't want to force a strict deadline for their sales. The crowdsale determines how successful a startup will be as it funds their development for X amount of years. For this reason, startups want to maximize the amount of funds they receive as best as possible, and in order to do so, they normally leave the pre-sale or private sale rounds open until they deem necessary. As a result, a distribution date can't be set for a bounty campaign until these rounds are officially closed, and once the public sale rounds are announced.
Words Of Wisdom The ICO/STO/IEO world is growing every day, but so are the elaborate scams. So to finish this post, I just wanted to provide my insight on how I deem a project and their team legitimate or not!
1) Join the Telegram Group and start asking questions! If a startup is legitimate, then they will value their community and try to answer any questions as quickly and honestly as possible. So by asking questions on the team, the project, the crowdsale, etc..., you can easily learn how committed and knowledgeable the team is. The biggest red flag is if the Telegram group isn't being moderated and you never receive a response from your questions!
2) Don't base your decisions on influencers or listing sites - Do Your Own Research! Anyone can get an influencer or listing site to promote their project as long as they pay the right amount. For this reason, they can basically get anything published whether it is true or not. This is why I caution everyone when reading ratings or comments on a startup; not all of them may be credible.
To be safe, just do your own research. Review the website, look at the team and their background's, closely read through the whitepaper. Do a thorough review of the project before deciding to join their bounty campaign or crowdsale. If you don't spend at least an hour reviewing the project, you didn't do a good enough job.
3) Don't be afraid to get involved in a project This doesn't necessarily relate to determining whether a project is legitimate or not, but I just wanted to get this out there anyways. Don't be afraid to ask a startup if any positions are open, or if you can help promote the project. Outside of bounty campaigns, a startup is always looking for more ways to get their name out to as many people as possible. If you are really committed to a project, reach out to the team and tell them how you think you can help. Most teams are willing to hear at least what you have to offer, and if deemed of value, you could earn extra tokens or even a role with the team! The best part, asking to get involved has zero consequences!
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If you have any comments or arguments against any of these, feel free to get the conversation going below in the comments!
Thanks for reading and Happy Hunting!
My basis of judgement in finding the good project in cryptospace, isn't focusing now on the white papers or roadmap of the cryptocurrency. What I am aiming to look is how the projects is managing the situation happening each day a big news is out, through that you can already identify projects that has their real intention in the market. Not just those that goes on the flow and disregarding issues arising such as market price fall of such crypto.
