That is why you should pay attention to how many tokens are allocated to the bounty campaign. I've noticed that scam projects is allocating huge amounts of tokens ($1M and more) to bounty hunters.
That is not always an indicator of being scam. What about altcoins that have low price. They allocate millions for bounty campaigns. For example YOUengine - they had 4 round of bounty campaigns, with 7,500,000 YOUC pool each. Now, with token price of a bit more than 3 cents, their total bounty pool equals almost $1,000,000.
Even on the bounty start, they have already mentioned, that their tokens is already traded at the price of 10 cents and they allocate 30,000,000 tokens. $3,000,000 bounty pool. Can you image someone would give such a huge amount of money as a bounty reward on April 2020, when due to covid-19 world economy was feeling bad? That time, this sound like a total scam.
Very good mate, i promoted YOUc too but with the mindset that I won't get anything in return because the amount of tokens they plan to give away is way too big, after distribution the price do dumped big and that got over me, I dumped my tokens and move on but later the value recovers very fast, something that could take projects a year or months, YOUC is the most surprising bounty project of 2020
I can also share a negative experience of huge bounty pools. There are some true words in Yurkov post.
This is example shows that bounty was not scam (as he said, huge amount allocated = scam), but how huge bounty pools can ruin a project.
In 2019 there was such project as Moozicore. I dont remember exactly how huge their bounty pool was, but I remember it was almost as big as the amount of token they have sold during 3-4 IEO rounds. They have honestly distributed rewards to dashboards, but that does not help them. When they unlocked tokens, millions of tokens were thrown in the market and dumped token price 15-20 times.
Come on!
Where did you read that huge allocation of tokens = scam?
I wrote that scam projects make huge allocation because they dont care about what happen later. I have not written that these are all projects which make huge allocation!
Yet another thing is that I find allocation of huge amount of tokens is bad, because it cause of huge price drop right after listing on exchange.
The example of YOUC is an exception, and I don't know of any other similar example.
If someone likes the risk, go ahead and take part in bounty campaigns that give even $100M
Anyway, this is a big mistake in my opinion, but as we know everyone take decisions by himself.