The proliferation of scams has unfortunately extended to bounty programs. At the same time, the open nature of ICOs makes it an efficient scam prospect. This is because it is a very easy and high-yield way to make big money quickly.
At the moment, many unsuspecting investors learn the hard way by falling victim. In reality, it is even more risky than comparative fiat financial platforms. It is important to note however that this is not the case for most ICOs.
The ease of operating a fraudulent bounty program complicates matters. Like everything that is digitized, the virtual nature of the product makes running a scam easier.
In effect, it is difficult to identify a scam until end of the ICO. Conversely, one can participate in a bounty scam and do tasks for weeks all in vain. It goes without saying that it saves a lot to identify the legitimacy of a bounty early. In the same vein, there are certain considerations that can help in that;
Research on the Bounty Manager
Bountyhive is a great utility for this as they have great information and an easy to use bounty platform. There has to be caution when using the Token suit bounty since a user needs to keep track of the thread. The result is a distinct possibility of not having your tokens. That can come about because of small mistakes is not identified early as spreadsheet updates are not regular.
Placing trust in bounty programs posted by new users is not advisable.With that in mind, the importance of research cannot be overstated.Therefore an investor should conduct extensive research before participating in such bounties. This is because the most minor of details can be the difference between a great investment and a scam.
The Bounty Team
A reputable project team naturally attracts many to a program. This is because the background and experiences of the team can inform the direction and reliability of the project. Therefore, check to make sure these details are factual rather than made up by looking up their profiles. There are some scam bounties that use photos of experienced technocrats to further their fraudulent schemes.
Project Concept, Website and Whitepaper
These provide key details in your fact finding mission. The whitepaper chiefly contains lengthy details as well as a description of the platform’s functional mechanism. That is why a keen investor should be able to tie loose ends from this.
The Bounty Details
In this regard, have a look at rewards system and the tasks you have to do. Scams typically have no future vision after the token sale and the activities are notably limited to that period. The program gives rewards and this can also be telling. Big rewards during the presale are a red flag. The program vision in summary in general should inform an investor.
These are just some considerations to have with regard to bounty programs. In the sophisticated world we live in there are scams left, right and center. The cryptocurrency industry as a result has earned a bad rap for fraud. This is why it is important for all relevant stakeholders to act up. Conducting your diligence can go a long way in securing your time and most importantly money.