What is an IBO? What Is The Difference From ICO?

IBO (Initial Bounty Offering) is a term that is mentioned quite a lot in the crypto/money 4.0 industry, besides IEO and ICO. Have you ever learned about IBOs and when to choose an IBO over an ICO? Let’s find out in the article below.

What is an IBO?

IBO stands for Initial Bounty Offering, known as a resource-calling structure to help build projects, implement its marketing plans, and help to build a certain user base. IBO trade Coins for the user’s contribution to the ecosystem and the success of the project.

In an IBO structure, participants receive a primary reward in coins when the ICO is conducted. Thanks to IBOs, millions of users with different skills and potential resources can contribute to fulfill the tasks of an ICO project. It makes the launch of an ICO become more successful than a single ICO.

Therefore, it will be an ideal model in the new era of the cryptocurrency industry. An IBO usually gives participants service as a reward for their contribution to help the growth of the community, or whatever a project needs to grow.

Composition classification in the IBO

Depending on the participants’ capabilities and resources, they are categorized as belows:

• Bounty hunter: These are the individuals who complete the tasks that the Initial Bounty Offering set and receive the coin as reward during the time the IBO is issued.
• Speculators/hoarders: These are individuals who support each mission by purchasing a portion of the reward in favor of the bounty hunter and, in turn, receive additional coins from the support.
• Builders: People with high skills and potential. They are mainly engaged in difficult tasks, especially important for the long-term growth and development of the system.
• User: As an early registrant to the system, receiving coin rewards in major promotions at the early stage.
• Referrers party: Are all the main users participating in the promotion, advertising, calling for system participants and receiving rewards for the results of advertising calling for new users. The most commonly used main form of referral these days is “affiliate marketing” or “referral link”.
• Partners: All platforms such as exchange, wallet service provide containing coin/money 4.0, other conversion services … When integrated with the IBO system, they will be rewarded with that IBO coin.

What to do after joining IBO?

So, after joining the IBO and receiving rewards for contributions, there are 3 options for the next move:

1. Use coins that are received from bonuses to exchange for cash or exchange for other coins.
2. Use the bonus coin to buy the products/services that the IBO project offers.
3. Simply HOLD and wait for the coin’s price to rise.

For those who want to participate, but do not want to spend time on the tasks/programs that the IBO offers, they can participate in speculation / hoarding of coins. By investing to buy IBO coins, then IBO can use that financial resource for hiring external resources to perform the task.

When should I choose an IBO over an ICO?

Firstly, the ICO market size is still relatively small. ICO is mainly aimed at the segment of users who have available idle money and wishing to invest in coins. Secondly, the rest of the segment, those who do not own any coin yet, which has amounted to billions of people.  Even 2 out of 7.6 billion people do not even own a bank account. Therefore, the potential from this segment is tremendous.

Initial Bounty Offering distributes coins by creating tasks / programs in exchange for community participation and contribution. After that, connecting an IBO to an exchange, users can completely convert one coin to another, even convert it back to cash (for example: currently, NEE coin can be exchanged on NEEX. info).

Blockchain application solution to raise capital for startup

Vietnam is one of Southeast Asia’s most potential markets for digital currency/money 4.0. A multitude of ICO projects from abroad and Vietnamese have continuously launched in the period of 2017 – 2020, … attracting a lot of attention from investors. Typically, we can mention the program “Affiliate Marketing of NEEBank”, launched in June 2020, offering the program of community expansion for participants. A reward of 9 NEE for a new account is successfully registered under your referral link. The project has earned a large number of users without spending too much resources on marketing, advertising … All thanks to the attractive IBO program, NEEBank was able to gain lots of new users. Also, from the bounty community and the exchange partners.

In Vietnam, blockchain is mainly applied in the fields of financial services (more than 83%), supply chain (40%), public services (30%), energy (30%), education (30%), … Until now, most startups use blockchain in the financial sector such as NEEBank, VBTC …

Above are things you should know about IBOs for beginners in the crypto industry. Hopefully the article can help you better understand the definition as well as when to choose an Initial Bounty Offering instead of an ICO.