Ethereum has managed to make token issuance a whole lot easier. Through its success, Ethereum elevated the entire economy of cryptocurrency, making crowdfunding for the innovative project easier than ever.
Smart Contracts and Their Impact in Investing
The importance of smart contracts is something highlighted by the cash flow into ethereum itself along with how much money has been flowing into Initial Coin Offering investment opportunities. The increasing recognition of cryptocurrencies brought bitcoin and ethereum on the spotlight of cryptocurrency through 2017, but the rise of ICOs was certainly an event of utmost importance that year.
The technology of smart contract allowed for immutable and trustless token issuance. This development, in an of itself, made ethereum be recognized as a universally unique platform for token issuance. Contracts could for the first time be developed and verified through blockchains. Parties seeking investments could for the first time program an automated and immutable token creation and deliverance system, taking trust out of the equation.
The Explosion of Ethereum ICOs
The concept of an initial coin offering was something that seemed like a revolutionary idea just a while back. The coming into the practice of that very idea attracted so much interest from investors, billions in USD value flew into that newly sparked branch of the cryptocurrency economy just within 2017.
In a sense, the ability Ethereum's smart contract structure provided to parties seeking investments kickstarted the entire movement of crowdfunding through ICOs. Many teams seeking to create innovative projects took advantage of the opportunity that the ICO market posed, and created solutions implementing blockchain technologies. Many ICO projects are now interlocking some of their core functionalities into autonomous smart contracts, build under the model of Decentralized Autonomous Organizations (DAOs). Most importantly though, the token issuance that provides investors with a blockchain-secured reassurance for their investment has been the core part of ICO investing.
Bounties and Bounty Campaigns in the ICO Economy
ICOs are putting on great efforts to advertise today. The investment an ICO can stream right into a business opportunity is immerse, yet as this market is truly open to anyone investors could get lost in the constant stream of potential investment opportunities that are now flooding their monitors. The marketing tactics employed to help in the success of ICOs are unique to the crypto industry.
Bounties for the completion of community-oriented tasks are often offered. This would mean that people helping in the development of certain aspects in a project's campaign or infrastructure could get rewarded by the development team. Oftentimes those bounties are paid in the token of the project and the tasks at hand include activities like translations, moderation of community chat rooms, etc.. This type of reward can be lucrative but is often snatched up really fast and usually is only accessible to certain professions.
A more common tactic for the promotion of ICOs is bounty campaigns. Under such a campaign, the tokens of a project would be distributed to anyone helping spread the word for it in several different ways. Tasks for a bounty campaign can include: Facebook likes, retweets, visiting community chat rooms on Slack and/or Telegram, etc.. This type of task is truly accessible to everyone and often performed as a method to promote the project by its team as it also helps in better distribution of the token.