What is Bounty ?

Crypto bounties are an important rewards mechanism that blockchain projects utilize in order to secure the successful accomplishments of certain tasks required by the network. Initially, bounties were intended as a marketing tool to attract users to participate in performing validation services for blockchain projects. Today, crypto bounties have developed significantly beyond the purpose of a simple marketing tool.

One of the main purposes of a bounty rewards program is to promote the initial coin offering (ICO) of a token. Much like traditional initial public offerings, ICOs need to generate a lot of attention to be successful. Bounty reward programs are a great way to create awareness and engagement for a new token. The way bounties work is simple. The project looking to push its ICO announces a promotion campaign in which users perform marketing actions and receive tokens in return. These marketing actions can be anything from posting a photo or video promoting the project to publishing reviews in forums and online community boards. In return for performing these promotional actions, users receive either free or discounted tokens.

Bounty rewards campaigns were a huge phenomenon during the ICO craze in 2017 and 2018. Unfortunately, this marketing tool was often employed by fraudulent projects in order to promote fake tokens. This has made many crypto enthusiasts wary of bounty rewards programs. The Securities and Exchange Commission (SEC) has deemed some ICOs and bounty rewards programs illegal and used them as proof of wrongdoing in front of courts.

Despite numerous controversial cases, bounty rewards programs remain a very widespread marketing tactic for promoting new tokens. Not only that, some blockchain projects incorporate bounty rewards even after the successful launch of the token. Post-ICO rewards schemes are focused on boosting the development of the project. During them, developers are incentivized to go through the code of the project and localize bugs. In addition, bounty rewards may be offered for translation services aimed at making the project more globally accessible.

The abundance of bounty rewards programs has created a new persona in the cryptocurrency world — a crypto bounty hunter. Bounty hunters are people pursuing a number of rewards programs, seeking to benefit from all of them simultaneously. Much like bounty hunters in the Wild West, crypto bounty hunters always chase the best-paying rewards programs and race to be the ones to claim the reward.

Even with the high level of controversy surrounding bounty rewards programs, this is still a widely used marketing strategy by cryptocurrency projects.

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What About Bankruptcy ?

Bankruptcy is a state where an entity or a person cannot meet financial obligations, such as debt repayment to creditors upon legal declaration.

Cryptocurrency has made notable advancements and has been highly beneficial for investors. However, in the past few months, there have been some significant misfortunes, leading investors to ponder on the future of their crypto investments.

Is Cryptocurrency FDIC Insured?

Well, the ultimate answer to this is NO. Cryptocurrency is not insured by the Federal Deposit Insurance Corporation (FDIC). This translates to the investors not enjoying any FDIC perks if the crypto company they have invested in goes bankrupt.
This also means that crypto investors risk losing their capital, and not a single government organization will back up their losses. Moreover, unlike a bank, the government guarantees no funds if the crypto firm gets defunct.

How Does Bankruptcy Impact Withdrawals?

Since the FDIC does not insure cryptocurrency, the most disastrous thing is when the investors cannot withdraw their hard-earned invested money from the bankrupt project. This means the masses' big share of the money has been wasted.

When Voyager filed for Chapter 11 bankruptcy protection, it stated that all the users would get their deposited USD amount, but it did not specify the cap of the returns. At the time of the bankruptcy proceedings, it said the company had $1.3 billion in cryptocurrency resources owned by customers.
After Voyager, Celsius also filed for bankruptcy protection in mid-July 2022. The official bankruptcy was filed after Celsius stopped all transactions, exchanges, and deposits between client accounts. As reported by them, they had almost $1.2 billion more in debt than they have in cash.
These two major cryptocurrency organizations' incidents have complicated things for investors. As a result, some people are now questioning whether they should invest their money in crypto.

Investors should remember that if the crypto organization they invest in goes out of business, no government institution will be able to protect their funds.

Given Preferences in a Bankruptcy Case?

There is a defined line of command regarding who receives payment for the residual assets during the Chapter-11 bankruptcy procedure. As a result, investors may not lose everything, even if a corporation owes $1 billion more than it has in holdings.

Per Chapter 11, in addition to other financial information and reports, the bankrupt corporation must publish an organizational plan of assets and liabilities. The business, attorneys and bankruptcy court collaborate to determine who receives what throughout the bankruptcy process.

According to the law, secured creditors often receive the very first payments. After fulfilling such commitments, money is used to pay off debts owed to financial creditors. Investors come in last to receive their money when it concerns getting their money back.

How to Recover Funds From a Bankrupt Crypto Firm?

Now that you won't be given any preference during bankruptcy as a retail investor, you might wonder what you could do to recover your funds from such a project. In most cases, if the project you have invested in goes out of business, it informs its investors immediately by the registered email address or contact number.

You must fill out the necessary forms and keep up with all the paperwork they need you to complete. Make sure you have entered the correct details while creating your account so that there won't be any hurdles if the project decides to return your money. Though there's a very low chance you get your crypto proceedings back, you might get some of your invested money. So, have patience and wait for the project (or its liquidators) to contact you.

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tcgforyou

October 4, 2023, 8:25

This is #BITCOIN Monthly Return chart MoM(Month on Month). October seems to be good for #BTC or nearly Breakeven for it.

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Notice of Removal of Trading Pairs - 2023-10-06

https://www.binance.com/en/support/announcement/ad539191a8d8447eb14dd8660bd57b44

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tcgforyou

October 4, 2023, 5:13

#BTC slowly to dip down lower with very low volume in the market. Expecting a reaction from the trendline but overall, market is kinda bearish as of now.

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Notice of Removal of Isolated Margin Trading Pairs - 2023-10-12

https://www.binance.com/en/support/announcement/1184147d771d46d79b4490cf90aebcae

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tcgforyou

October 3, 2023, 18:18

#ETH totally, disrespected the major resistance zone of tapped into fresh Resistance zone around $1735 - $1740. Looking into daily TF, Price again given a close below of the zone, which might gonna continue pushing lower as Market structure turned bearish.

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