To help promote their projects, many initial coin offerings (ICOs) set up a so-called “social media bounty campaign”. In this article, you will discover what social media bounty programs are and what role they play in the ICO market.
What is a social media bounty program?
within the digital global, bounty applications have their origins inside the on line gaming zone. Gaming agencies startedto provide bounties as a reward to builders who took element inside the improvement of the game. In simple terms, a bounty software is an incentivized praise system supplying by means of organizations to those who want to make contributions to a undertaking.
inside the cryptocurrency international, bounty applications are typically being used by blockchain projects that arelooking to raise budget through an preliminary coin supplying. those bounty packages reward users for reporting insects, suggesting improvements to the network, and – maximum usually – are being used as part of an ICO’s marketingmarketing campaign to encourage a mission’s community to sell it on social media in exchange for price within themission’s new virtual token.
This creates a win-win situation for both startups and cryptocurrency users because the startup undertaking gets a lot–wanted merchandising in the proper social media channels while cryptocurrency customers are rewarded with digitaltokens for their efforts.
for example, bounties are paid for finishing duties which include developing a YouTube video or a weblog put up that promotes the assignment, writing a tweet that highlights the mission’s blessings or posting about the undertaking in a high quality mild on facebook.
ICO initiatives commonly reserve one to a few percentage in their tokens for their bounty hunters and bounties are typically paid out some days after the token sale has been finished.
interestingly, social media bounty packages have emerge as particularly famous among cryptocurrency users in growingcountries who use the virtual tokens they get hold of as rewards to complement their incomes.
How social media bounty campaigns affect ICO performances
As you will anticipate, social media bounty campaigns can be enormously useful for blockchain projects that areaccomplishing token income as they no longer only help to construct a community around a task but additionally allowsits community members to behave as “cheerleaders” for the project in alternate for small amounts of the newly-issued virtual tokens.
normally talking, the greater exposure an ICO gets in the media, the more likely it will hit its funding target. consequently, the more users it could recruit to highlight the benefits of the undertaking on social media, the wider the challenge’s attain turns into. for this reason, professionally run token income will regularly placed a sturdy attention on their social media bounty campaigns as they have come to be an crucial part of a a success ICO advertising method.
whilst requested about the effectiveness of jogging a social media bounty campaign at some point of an ICO, Bernhard Blaha, co-founder of the decentralized e-sports activities betting assignment Herocoin, which raised USD 2 million really worth of ETH at some point of its token sale in autumn 2017, advised CryptoSyringe.com:
“For smaller teams that need to market globally, [social media bounty campaigns] appear to be a good way of efficientadvertising by means of outsourcing it to affiliates. It helped us in spreading our messages across the world by means ofthe use of multiplier results, consequently using traffic parallel from all around the international and reducing language obstacles, however one shouldn’t underestimate the time and economic sources for set-up, control, and manipulate as well as payouts which might be simplest projectable to a point.”
Drawbacks of social media bounty campaigns
While well-executed bounty campaign can work wonders for the success of an ICO, the unfortunate reality is that many users who partake in the social media bounty program do not really care about the project and are only involved to make easy money. This, in turn, can lead to a suboptimal performance by the bounty hunters who often end up spamming Facebook groups or the BitcoinTalk Forum in an attempt to earn as many bounty rewards as possible.
No longer most effective does that abuse the machine and emerge as costing the startup cash for little to no value in go back, it may even harm an ICO’s credibility as it is able to be seen as carrying out an unprofessional advertising marketing campaign. therefore, it’s far vital for startups trying to launch a token sale to hire skilled specialists for his or her bounty campaigns that may make certain that the marketing campaign will yield a effective go back for the undertaking.