ICO or IBO? Initial Bounty Offerings Are Officially on the Market

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ICOs have become very much popular and that can be seen by checking some of the ICO listing websites. The numbers are in thousands that are either upcoming or currently running. Miko Matsumura, Pantera Capital Limited partner said in November that there are currently 30 ICOs being launched per day.

Because of this kind of growth, the challenge is to be unique and make noise to get noted in the crowd. They are using all kinds of marketing strategies with Telegram channels being used to grab the attention. Even the social media channels are being used to give several offers for capturing the attention of crypto investors. This would evolve very soon with new strategies from the companies.

The first recorded Initial Bounty Offering, IBO has quietly launched without people having any idea about it. According to a website, an IBO is nothing but “a limited-time process by which a new cryptocurrency is made public and distributed to people who invest their skills and time to earn rewards in the new cryptocurrency. Unlike an Initial Coin Offering where the coins are sold, an IBO requires more mental commitment.”

On researching a little further, an IBO was first mentioned by a company dubbed as U.CASH in July 2017. U.CASH is a “blockchain based financial platform and digital asset converter network with a built-in cryptocurrency for payments of fees, execution of smart contracts and additional functionality.”

The IBO from U.CASH is said to be the world’s first IBO and is similar to an ICO. It is like dedicating most of the network access tokens to those users, who participate in the IBO.

An Initial Bounty Offering (IBO) in U.CASH’s website is defined as,

“Initial Bounty Offerings are a way to crowdsource human resources, business development, marketing and user acquisition for blockchain technology ecosystems, by offering network tokens in exchange for contributions to the ecosystem.”

The bounty programs in an ICO traditionally act in a similar fashion but with an important difference- They are limited in the timeline offered as well as in the equity of the tokens distributed. Bitcointalk is one of the forums where most of the bounty programs are hosted. They also give the chance to early ICO engagers to complete the tasks and get a token (bounty) in return. However, the reserved token pools are only a few percent of an ICO’s token allocation.

But in the case of U.CASH, the IBO has the opportunities for collecting bounties during the IBO period and offer incentives to the bounty hunters if they participate early. The participants can earn bounties simply by registering and validating their identity online. Other means of earning bounties include detailed assignments such as whitepaper translations and social media engagement. They have only one goal and that is the fair distribution of tokens and to help in driving the network growth. An IBO is better compared to ICO because of heavy competition in the landscape of ICO. As the companies struggle and fight to grab attention, the long-term bounty programs might help offer incentives to frequent participants, thereby creating awareness about the projects.