What is the bounty program?

Bounty Program

Bounty programs are a type of incentive offered to an array of participants for various activities associated with initial coin offerings. And initial coin offering (ICO) is one type of version. It is basically the version of initial public offering (IPO). A company launches an ICO when that company creates a new coin or an application. Sometimes the company even has an initial coin offering as a way to raise money when it creates a virtual currency service. A bounty program provides rewards or tokens to participants who complete specific tasks that help promote the ICO.

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Bounty programs are used to incentivize work prior to the initial coin offering. This bounty program is used by developers and marketers of crypto-coin developers. Bounty programs after the ICO may seek feedback on the code of the project or reward the promotion of the coin in media channels. Bounty programs operate in a legal gray area between marketing and pyramid-scheme-style fraud. The US Securities and Exchange Commission (SEC) uses ICO bounty programs as evidence of criminal wrongdoing.

The participants involved with the bounty program span the various stages of an ICO. There are even Tiscol investors involved, ranging from investors to ICO promoters and developers at various stages of ICOs. Incentives can take the form of cash rewards. All the tokens associated with it can be cashed out at a later time. However, cashing these tokens is only possible when the tokens are listed on an exchange.

The decline of the ICO market was dramatically organized in late 2018 and 2019, which reduced the number of active bounty programs. Even bounty programs that were focused on marketing were used to promote fraud during the heyday of the cryptocurrency bubble. Such fraud must be avoided. Especially those who develop crypto-coins should be warned against using them. Broadly, an ICO consists of two phases: Pre-ICO and Post-ICO.

Bounty programs typically encourage developers to find bugs or provide feedback on other design elements after the initial coin offering. Even coders who test and identify bugs in the blockchain are encouraged to give feedback and are rewarded with a form of reward known specifically as a bug bounty. And all the translators who are involved in it are also given bounty rewards.