The goal of bounty programs is to provide an incentive for so-called “bounty hunters” to contribute to a fundraising project by performing specific promotional tasks. Such tasks can include anything from posting project-related content on social media to actively onboarding investors. Typically, the project will reward bounty hunters with project tokens in return.
During the 2017 ICO boom, bounty programs were common, but they have gained a negative reputation. Incentivizing bounty hunters – who often have no relation to the project and no knowledge about the investment opportunity whatsoever – to promote your project, doesn’t sound like professional investment promotion. Companies also run the risk that false information is being promoted publicly, which is hard to monitor or control.
While commonplace in the ICO space, most STOs have not launched any bounty programs. The reason being that STOs face much more strict regulatory scrutiny and thus need to be careful how their projects are being promoted publicly. Moreover, security tokens are a regulated financial asset and cannot be distributed to random bounty hunters without a KYC check.
Bitbond offers six ways to earn bounty premiums
Bitbond launched their bounty program on May 8th, announcing that they are allocating 2% of the total funds raised during the STO to the bounty program.
The company offers six different bounties schemes:
1. Hunter Bounty: Referrals leading to bounty program participation
2. Affiliate Bounty: 5% commission on referrals leading to investments over €10,000
3. Signature Bounty: Token compensation for active BitcoinTalk users which advertise the STO in their signature.
4. Creative Bounty: Rewards for creative advertising in the form of memes, gifs, images, etc.
5. Social Media Bounty: Compensation for STO promotion through qualified Twitter, Facebook, LinkedIn, and Telegram accounts
6. Content Bounty: Rewards for creation of articles, and videos, which raise awareness about the BitBond STO.
Bitbond still needs EUR 1m to reach its STO soft cap
Bitbond CEO Radoslav Albrecht commented to CryptoGlobe on why the company launched a bounty program. He says, “Since our launch in 2013 Bitbond has always worked closely with the crypto and blockchain community. This bounty program gives us the opportunity to engage further with our community, reward Bitbond early adopters and spread the news about our new groundbreaking project, the Bitbond STO.”
The real reason behind the bounty program is likely the STO’s performance so far. Launched on 11th March, Bitbond collected EUR 1m on its first day. However, the weeks after the head start were less impressive. To date, Bitbond has raised about EUR 2m.
Thus, there is still some way to go before the STO reaches its soft cap of EUR 3m. The STO was scheduled to conclude early June. Hence, there is pressure to collect the final EUR 1m. That, more than anything else, is the reason why Bitbond launched a bounty program.Image: ©Shutterstock