Dec 7, 2018 11:46 UTC
Dec 21, 2018 at 09:58 UTC
Cryptocurrency Bounties & Airdrops: All You Need To Know
At present crypto world is flooded with numerous cryptocurrencies listing themselves on the market, some of them tasting the success while many others disappear into the oblivion without a trace.
In this day and age of strong PR games, how can one differentiate or create more awareness about the upcoming and new cryptocurrencies? The answer is Bounties and Airdrops. This article will dive deep into the two keywords mentioned above, and as a reader, you would come to know how to participate and reap the dividends from airdrops and bounties.
Awareness & Adoption
Any new project from any sector is highly dependent on the promotions and awareness it creates among the target user base. The more people are aware of your project; the adoption will be equivalently wider. The interest of the community would eventually decide the future of your project.
The primary example in case of cryptocurrency is Bitcoin itself. The buzz around the product which promised to be decentralized and free from the clutches and boundaries set by centralized authorities as the bank led to its success. Since the awareness about the project was quite high, the adoption was equally overwhelming.
Awareness and Adoption are interdependent, but the real question is how someone can create awareness for cryptocurrencies, a by-product of the blockchain technology, often marred in controversies and eyes of law enforcement agencies.
The responsibility for creating a buzz about any new cryptocurrency making its debut is hinged on the ICOs. These ICOs are responsible for creating a positive outlook in the minds of future customers and users, through the funds they collect from investors in private sales.
However, that is not the case for everyone, what if you are a small group of developers with a brilliant idea but not enough capital to tell it to the whole world. How can such path-breaking yet cash deficit projects break into the market? The Answer is ICO Bounties.
You May Also Read: How To Earn Free Bitcoins?
Bounties in general means reward, the term came into being from the digital gaming platform, where people involved in the development of the game are provided with different free tokens and benefits.
In the cryptocurrency realm though, the bounty depends on the number of tasks completed. The work may be manual or technical. The initial tokens from the ICO are quite cheap as they are the new tokens held by the developers. The token bounty system comes in as a great boon for such unique and cash deficit projects. And the community involved with the project gains tremendously from it, as they don’t have to make any investments from their side.
The ICO bounties are divided into several categories depending on the stage of the project development. There are mainly two parts of the ICO bounties,
- Pre-ICO bounties
- Post-ICO bounties
These bounties are offered at the beginning of a project in the hopes that the community would spread the word and it would generate enough curiosity upto the launch of the ICO. The main work for the community is to spread the word through various social media platforms, connections, and Write-Ups. There are broadly three ways in which people can earn bounties in the Pre-ICO era.
- Social Media Bounties
- Article Writing Bounties
- Bitcointalk signature
Post – Ico bounties are distributed for ongoing project developments which would help the project flourish further. The continuous involvement of the community in development helps the project take in the viewpoint of the community to deliver a more satisfying product. There are mainly two forms of Post-ICO bounties, namely,
- Translation bounties
- Bug-hunting bounties
So these are the mainstream forms of earning the extra reward from both Pre & Post ICOs. Now you might be thinking what if I don’t have the technical skills to make the bounties set in Pre & Post ICO era, well there is something for everyone, and this is where Airdrops comes into the picture.
You May Also Read: Who Owns The Most Bitcoins In The World?
As the name suggests, Airdrops are free coins being released by a project which are usually used by developers to increase adoption and increase the interest of the community.
Airdrops are generally seen as free coins. However, that is circumstantial, i.e., Airdrops can be tied to a bounty, where a user only get the Airdrops if they have completed a set of tasks related to an ICO.
The most common form of Airdrop comes due to a Fork of crypto, which results in the doubling of the coins, as the holders of the original coin get an equal amount of the newly forked currency. Generally, the forked airdrop is used by developers to bear the cost of development at later stages.
To claim the Airdrop through a forked coin would require the user to have the primary or unforked currency in their wallet. The Airdrop is sent in the form of ERC 20 tokens. The ERC 20 tokens come in the ratio of the amount of original coin you are holding in your wallet.
There have been cases where the airdrop arrives as a fixed amount too.
You May Also Read: Key Differences Between Bitcoin And Altcoin
Bounties and Airdrops are a life savior for small-scale projects with high potentials. The methods help the user community to be aware of the project beforehand which eventually lead up to better adoption of the plan.
However, looking at the increasing level of fraudulent projects and scams, one must do thorough research before running behind any such bounties or Airdrops.
Here Are A Few Other Articles For You To Read Next: