Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: admin on July 20, 2018, 11:42:27 PM
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Some ICOs are now requiring KYC for bounty and airdrop distribution,
The nasty trick is that they keep this crucial information till the end.
But, the real question, Should ICOs require KYC for Bounty hunters & Airdrops ?
Some lawyers are advising ICOs to do that, but is it really necessary ?
What is KYC and when is it needed ?
KYC: Know your customer is the process of a business verifying the identity of its clients and assessing potential risks of illegal intentions for the business relationship.
The Know Your Client (KYC) rule is an ethical requirement for those in the securities industry who are dealing with customers during the opening and maintaining of accounts. There are two rules which were implemented in July 2012 that cover this topic together: Financial Industry Regulatory Authority (FINRA) Rule 2090 (Know Your Customer) and FINRA Rule 2111 (Suitability). These rules are in place to protect both the broker-dealer and the customer and so that brokers and firms deal fairly with clients.
The Know Your Customer Rule 2090 essentially states that every broker-dealer should use reasonable effort when opening and maintaining client accounts. It is a requirement to know and keep records on the essential facts of each customer, as well as identify each person who has authority to act on the customer’s behalf.
The KYC rule is important at the beginning of a customer-broker relationship to establish the essential facts of each customer before any recommendations are made. The essential facts are those required to effectively service the customer’s account and to be aware of any special handling instructions for the account. In addition, the broker-dealer needs to be familiar with each person who has authority to act on behalf of the customer, and the broker-dealer needs to comply with all the laws, regulations and rules of the securities industry.
source : https://www.investopedia.com/terms/k/knowyourclient.asp
Thus, here we understand clearly that this is applicable when there is an investor / broker relation, but airdrop hunters and bounty hunters are NOT investors, thus i see no reason for ICOs to require KYC from them.
Please share your views below.
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I personally don't think bounties of any kind should require KYC, since you are not investing money into them I don't see why it matters to the ICO. I can understand wanting KYC is they are investing actual money into the ICO, but that's different from bounties and airdrops of course.
I think an ICO should operate the way that it wants though, if they want to require KYC that's fine. However, if they use a bait and switch maneuver to get people to invest weeks of work in the bounty then require KYC afterwards, that is extremely unethical. ICOs should do what they want with their company as it is their money, but they should be upfront about it always.
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Thanks admin!
It is so clear and very transparent.
SORRY to say this,
Now I know KYC of bounties and airdrops that required by (maybe) manager or founder stands for Know You're Corrupt.
I think it is possible that once the manager knew the project can absolutely survive with high chance of success he/she can require KYC at the middle or at the end of campaign.
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Thanks admin!
It is so clear and very transparent.
SORRY to say this,
Now I know KYC of bounties and airdrops that required by (maybe) manager or founder stands for Know You're Corrupt.
I think it is possible that once the manager knew the project can absolutely survive with high chance of success he/she can require KYC at the middle or at the end of campaign.
I completely disagree with this. It's a bait and switch tactic and shouldn't be employed or any part of any campaign. If a campaign or project is good enough, require KYC beforehand. If it's not, then you stick with that. Using KYC at the end screws over people not willing to give credentials to people that may or may not use their information illegally. Especially when the project could be a scam ICO. Putting KYC as a surprise will just force desperate people into a situation they can be taken advantage of simply because they want to be paid for their work. It's not acceptable.
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This is an interesting question. I will try to express my opinion on how I see this situation. KYC verification is initially needed not by the ICO projects themselves but by financial regulators, in order to make it clear who invested in the project, where this person is from. The project managers are obliged to carry out the tasks of the regulatory body and to conduct an audit of investors. For what the verification of the Bounty participants is necessary, I do not understand. Perhaps this is not the right event, but it has a big plus, revealing multi-accounts on and bots. The situation is twofold and I treat it neutrally)
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You are right admin. KYC is required for investor only. Because it helps to pass the audit and any verification process of a company.
I have figured out 3 reasons why some company required KYC:
- For investor verification.
- Sometimes some project gives the chance to bounty hunter to become co-owner of the company where their bounty reward is considered as the investment. So, it depends on the project policy also.
- The third reason is not for legal use. Some SCAM ICO might do that. They may use the information for some illegal purpose.
Finally, I think it is important to do good research about a company before providing KYC documents.
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As someone who work with ico before, i would like to give some ideas on why some ico wants to have kyc even for bounty participants.
One of the most common reason is that the base company is located in a country that has a more crypto regulated countries.
Especially singapore whereby they have crypto regulation that singaporean are not allowed to invest in ico stage. As singapore is very strict to its law, lawyers are more careful with the situation. So even investing time to do bounty can also prone to fall under that category. So that is why they want to kyc is because to make sure that during the ico phrase, no tokens are landed up in Singapore hands.
Another reason is the movement of the money. The KYC is to make sure that the tokens landed in the right hand. So whenever there is a suspected money laundry using the tokens, the company is able to provide data that 100% of the tokens goes to the legit people to prove that the company is not part of the laundry. Imagine that a criminal groups are using your tokens to wash millions of dollars, and the records show that you have given away million value of bounties to random people.
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As someone who work with ico before, i would like to give some ideas on why some ico wants to have kyc even for bounty participants.
One of the most common reason is that the base company is located in a country that has a more crypto regulated countries.
Especially singapore whereby they have crypto regulation that singaporean are not allowed to invest in ico stage. As singapore is very strict to its law, lawyers are more careful with the situation. So even investing time to do bounty can also prone to fall under that category. So that is why they want to kyc is because to make sure that during the ico phrase, no tokens are landed up in Singapore hands.
Another reason is the movement of the money. The KYC is to make sure that the tokens landed in the right hand. So whenever there is a suspected money laundry using the tokens, the company is able to provide data that 100% of the tokens goes to the legit people to prove that the company is not part of the laundry. Imagine that a criminal groups are using your tokens to wash millions of dollars, and the records show that you have given away million value of bounties to random people.
I understand maybe for ICO buys and maybe bounties over 1500.00 but why for an airdrop? I just don't see justification in money laundering through airdrop payments.. if its a regulation of that country then fine, I have no argument.. but if this is gonna be a requirement in this space, then there has to be some level of secure system that's better than just sending someone you dont even know in another country information and payment to something that maybe a fraudulent ICO just to get a bounty payment or airdrop.. if you can't do it without KYC because of country laws, then just don't have a bounty or airdrop at all.. you shouldn't be able to reap the rewards of these programs with also putting the participants exposed to all the risk as well.
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As someone who work with ico before, i would like to give some ideas on why some ico wants to have kyc even for bounty participants.
One of the most common reason is that the base company is located in a country that has a more crypto regulated countries.
Especially singapore whereby they have crypto regulation that singaporean are not allowed to invest in ico stage. As singapore is very strict to its law, lawyers are more careful with the situation. So even investing time to do bounty can also prone to fall under that category. So that is why they want to kyc is because to make sure that during the ico phrase, no tokens are landed up in Singapore hands.
Another reason is the movement of the money. The KYC is to make sure that the tokens landed in the right hand. So whenever there is a suspected money laundry using the tokens, the company is able to provide data that 100% of the tokens goes to the legit people to prove that the company is not part of the laundry. Imagine that a criminal groups are using your tokens to wash millions of dollars, and the records show that you have given away million value of bounties to random people.
I understand maybe for ICO buys and maybe bounties over 1500.00 but why for an airdrop? I just don't see justification in money laundering through airdrop payments.. if its a regulation of that country then fine, I have no argument.. but if this is gonna be a requirement in this space, then there has to be some level of secure system that's better than just sending someone you dont even know in another country information and payment to something that maybe a fraudulent ICO just to get a bounty payment or airdrop.. if you can't do it without KYC because of country laws, then just don't have a bounty or airdrop at all.. you shouldn't be able to reap the rewards of these programs with also putting the participants exposed to all the risk as well.
Agreed. I don't want to send my credentials to some random person that might even be a scam. If there were a centralized service that could verify customers that was trustworthy then we can talk, but there's no way I'm sending my picture IDs to some random. If ICOs want to use it, I'm fine with that, but be upfront about it so people are given the choice. Bait and switch is out of the question unless extenuating circumstances are involved.
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As someone who work with ico before, i would like to give some ideas on why some ico wants to have kyc even for bounty participants.
One of the most common reason is that the base company is located in a country that has a more crypto regulated countries.
Especially singapore whereby they have crypto regulation that singaporean are not allowed to invest in ico stage. As singapore is very strict to its law, lawyers are more careful with the situation. So even investing time to do bounty can also prone to fall under that category. So that is why they want to kyc is because to make sure that during the ico phrase, no tokens are landed up in Singapore hands.
Another reason is the movement of the money. The KYC is to make sure that the tokens landed in the right hand. So whenever there is a suspected money laundry using the tokens, the company is able to provide data that 100% of the tokens goes to the legit people to prove that the company is not part of the laundry. Imagine that a criminal groups are using your tokens to wash millions of dollars, and the records show that you have given away million value of bounties to random people.
Therefore KYC does not base in regulated country is a form of misunderstanding because no sense of requiring KYC if the project have freedom from it.
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Some ICOs are now requiring KYC for bounty and airdrop distribution,
The nasty trick is that they keep this crucial information till the end.
But, the real question, Should ICOs require KYC for Bounty hunters & Airdrops ?
Some lawyers are advising ICOs to do that, but is it really necessary ?
What is KYC and when is it needed ?
KYC: Know your customer is the process of a business verifying the identity of its clients and assessing potential risks of illegal intentions for the business relationship.
The Know Your Client (KYC) rule is an ethical requirement for those in the securities industry who are dealing with customers during the opening and maintaining of accounts. There are two rules which were implemented in July 2012 that cover this topic together: Financial Industry Regulatory Authority (FINRA) Rule 2090 (Know Your Customer) and FINRA Rule 2111 (Suitability). These rules are in place to protect both the broker-dealer and the customer and so that brokers and firms deal fairly with clients.
The Know Your Customer Rule 2090 essentially states that every broker-dealer should use reasonable effort when opening and maintaining client accounts. It is a requirement to know and keep records on the essential facts of each customer, as well as identify each person who has authority to act on the customer’s behalf.
The KYC rule is important at the beginning of a customer-broker relationship to establish the essential facts of each customer before any recommendations are made. The essential facts are those required to effectively service the customer’s account and to be aware of any special handling instructions for the account. In addition, the broker-dealer needs to be familiar with each person who has authority to act on behalf of the customer, and the broker-dealer needs to comply with all the laws, regulations and rules of the securities industry.
source : https://www.investopedia.com/terms/k/knowyourclient.asp (https://www.investopedia.com/terms/k/knowyourclient.asp)
Thus, here we understand clearly that this is applicable when there is an investor / broker relation, but airdrop hunters and bounty hunters are NOT investors, thus i see no reason for ICOs to require KYC from them.
Please share your views below.
Of course there is no reason for KYC when you participated in bounty or airdrop. KYC is only for investors, period.
Finally all depends from participants. If this is no problem for them to disclose their personal information in return for airdrop tokens.
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Meaning kyc unis not breaking the nature of decentralised system but a protection from any possible participation of illegal person using the decentralized system as their advantage.
Now I am more convinced that some bounty that ask kyc after the campaign are intentional to reduce the amount of the reward because other bounty hunters can't submit the said request. I usually see this to a successful ICO.
By the way, does our forum can avoid such case in order to be fair for the bounty hunters? This is the lack of BTT anyway.
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Cheaters are everywhere. I think this is the main reason why some Ico implementing kyc. Bassically data gathering and email for sale
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I FEEL THE PROJECT IS MORE BETTER THEN THE PREVIOU PROJECT
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Some ICOs are now requiring KYC for bounty and airdrop distribution,
The nasty trick is that they keep this crucial information till the end.
But, the real question, Should ICOs require KYC for Bounty hunters & Airdrops ?
Some lawyers are advising ICOs to do that, but is it really necessary ?
What is KYC and when is it needed ?
KYC: Know your customer is the process of a business verifying the identity of its clients and assessing potential risks of illegal intentions for the business relationship.
The Know Your Client (KYC) rule is an ethical requirement for those in the securities industry who are dealing with customers during the opening and maintaining of accounts. There are two rules which were implemented in July 2012 that cover this topic together: Financial Industry Regulatory Authority (FINRA) Rule 2090 (Know Your Customer) and FINRA Rule 2111 (Suitability). These rules are in place to protect both the broker-dealer and the customer and so that brokers and firms deal fairly with clients.
The Know Your Customer Rule 2090 essentially states that every broker-dealer should use reasonable effort when opening and maintaining client accounts. It is a requirement to know and keep records on the essential facts of each customer, as well as identify each person who has authority to act on the customer’s behalf.
The KYC rule is important at the beginning of a customer-broker relationship to establish the essential facts of each customer before any recommendations are made. The essential facts are those required to effectively service the customer’s account and to be aware of any special handling instructions for the account. In addition, the broker-dealer needs to be familiar with each person who has authority to act on behalf of the customer, and the broker-dealer needs to comply with all the laws, regulations and rules of the securities industry.
source : https://www.investopedia.com/terms/k/knowyourclient.asp
Thus, here we understand clearly that this is applicable when there is an investor / broker relation, but airdrop hunters and bounty hunters are NOT investors, thus i see no reason for ICOs to require KYC from them.
Please share your views below.
I have handled 2 ICO projects and I can say that KYC is required for to the use of bots. Say, for a telegram airdrop a single person can bring up 1000s of bots and register for airdrop which is not fair.
Also, KYC depends on the project that you are taking part. For some project KYC is not required but you will have to go through many verification process.
Even though KYC process, there are many cheaters who tries to come up with fake identity.
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I think to ask KYC not quite correct position, but it will be applied in subsequent ICO every time more often!
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I have handled 2 ICO projects and I can say that KYC is required for to the use of bots. Say, for a telegram airdrop a single person can bring up 1000s of bots and register for airdrop which is not fair.
Also, KYC depends on the project that you are taking part. For some project KYC is not required but you will have to go through many verification process.
Even though KYC process, there are many cheaters who tries to come up with fake identity.
Of course we have a lot of fakes in crypto, but I believe there are other less invasive methods than KYC, to avoid these social media bots, right?
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Agreed. I don't want to send my credentials to some random person that might even be a scam. If there were a centralized service that could verify customers that was trustworthy then we can talk, but there's no way I'm sending my picture IDs to some random. If ICOs want to use it, I'm fine with that, but be upfront about it so people are given the choice. Bait and switch is out of the question unless extenuating circumstances are involved.
I am with you bro. I think it is too risky for bounty participants by sending their personal identity data such as National Identity Card, Driving License, or Passport since no one guarantees the safety of the data. I'm very worried if it's misused later.
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Agreed. I don't want to send my credentials to some random person that might even be a scam. If there were a centralized service that could verify customers that was trustworthy then we can talk, but there's no way I'm sending my picture IDs to some random. If ICOs want to use it, I'm fine with that, but be upfront about it so people are given the choice. Bait and switch is out of the question unless extenuating circumstances are involved.
I am with you bro. I think it is too risky for bounty participants by sending their personal identity data such as National Identity Card, Driving License, or Passport since no one guarantees the safety of the data. I'm very worried if it's misused later.
I'd take it a step further and say its borderline insanity.. people fomo and worry about missing out on things and lose their rationale for a bit in hopes of getting something free, but if anyone could objectively step back and think about what they are doing, 99 times out of 100 they wouldn't do it later. There's almost nothing worth giving up that kind of risk.
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Why actually all so against the passage of KYC in conducting the bounty of the companies? I personally do not see this as a big problem to send a photo of your passport and your data for verification.
Judging by the answers, basically everyone is engaged in bounty companies and engaged with the help of several accounts - That's the main reason for not wanting to pass KYC. Everyone is just afraid that they will be banned and there will be only one account.
I believe that this is necessary - it will significantly reduce the number of participants in the bounty companies and companies will be held more honestly.
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Say NO to KYC airdrops and bounties! Unless you are investing, it isn't (or at least shouldn't be) a legal requirement.
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Well in my humble opinion KYC shouldnt be taken place with the bounty & airdrop hunters why? because these people are not investors they are called workers,the key to every ICO's success and shouldnt be asked for verification because they dont invest money to these project besides it is dangerous to send your IDs to anyone because it could be use to identity theft your informations could be sold in the deepweb.
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I am okay with KYC for some bounty campaigns but not for airdrops.
Here's the thing, most of us are commenting as bounty or airdrop hunters.
If we look at it from their perspective, it is the most effective way to prevent or minimize scammers from joining.
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I never do KYC for any kind of bounty or Airdrop, however, sometimes I find myself forced to do so. A lot of bounties never announce this at the beginning and just announce this by the end of the bounty and if my payment is big I have no option but to give them what they want or else I will lose payment.
I agree with you KYC should not be required from the bounty hunters, but if they gonna do it they should make it clear from the start.
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Take into consideration that most of this ICO's are not legal and there is always a chance that you can have problems because of KYC.
I understand that airdrops and bounties needs tools to be able to fight with abuse but KYC can't be one of them because ICO's just can't ask you for that. There are hundreds of measures you have to comply to be able to run legal KYC. Such an ICO have to manage and store this documents in a very safe way. This is very expensive and I am sure nobody is taking care of this.
They call it KYC but this is nothing more as an attempt to verify people on your own and for your needs. Anyways airdrops pay few bucks at best lately so its crazy to disclose your documents online for such an reward.
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KYC,even for bounty, could separate the wheat from the chaff,regarding multiple accounts.But i´m only for KYC for bountys if ICO got softcap and tokens are on exchange.
To give my data to some 3rd party and let them sell it before ICO get softcap is not the right thing to do it.
And please,don´t tell me on last bounty day that i need KYC :-[
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All this KYC have advantages and disadvantages. We have some KYC that will require only passport and will not accept any feedback from you. Are we all travellers? The answer is no. Only travellers get passport. A user will start a bounty program up to the finish date and the bounty manager or team will not inform the hunters about the KYC procedures. At the end some hunters ends up loosing all their token due to KYC problems. All this are disadvantages. The basic advantages I could find is that is only avoid users trying to game the system
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I have a topic which I created about KYC or bounty hunters, if good or not and several people are sharing their views.
In my personal view, I will say yes, there should be KYC for bounty hunters. KYC will help reduce most people who cheat the Bounty system depriving the genuine hunters not to earn as much as they should, in the other hands, Any project that would like hunters to pass the KYC should define the rules at the beginning of the bounty program not at the end of the bounty hunting. So that those that want to join can join the bounty knowing the rules already.
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To me,KYC is not necessary for bounty and airdrops cauz we are interested in crypto,and crypto has nothing to do with our personal matters
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It depends on the ico, if a security token then there are reasons to complete kyc
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Admin thanks for the well detailed information about what KYC is all about, now I believe that most projects just want to use that to cheat the bounty hunters. But with if the coin in which the bounty hunter hunts is Security token, will it not be enough reason for bounty hunters to pass KYC before holding them? Please some give more insight about this.
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I appreciate your detailed information about the KYC admin. This is very clear, investors are to be known by the project team. The bounty and airdrops hunters are mainly interested in the token/coin of that project. Giving away IDs because of KYC, for some fractions of tokens that will be shared amongst participants and their ranks/how many times they could gain from it, is not a guarantee of giving away personal data. Project investors are working with the project to help them have a successful end, while the hunters are the advertiser of the project through which big investors come into the project.
I do not agree with KYC process on bounties and airdrops hunters.
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I see no reason why KYC should be applied to some bounty and airdrop.. most of the project that requires KYC for there bounties do that so as not to give bounty hunters what they've actually worked for, I I partook in one bounty on bountyhunters, they never said they were going to be KYC at first but right after the end of the bounty, the asked for KYC and the funny thing about it was that 90% of people that did the KYC failed...
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I guess the counterargument is if you dont require KYC could it be an SEC violation.. I still don't see enough evidence through current cases that this will be the case any time soon, but with security tokens becoming more and more popular, there will likely be more KYC heading into 2019 unfortunately.
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As a bounty hunter, I understand the sentiment of the many here. But if I were on the other side of the fence, I would rather stay on the safe side than having that risk of getting investigated by the SEC. That is a lot of resources going to be wasted.
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I can understand wanting KYC is they are investing actual money into the ICO, but that's different from bounties and airdrops of course.
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I've done an article bounty for my project with CCX
I think they do KYC for some users and some tasks, but not for all (I might be mistaken)... but here's my take on why I *might* want to know who users participating in my bounty are:
As the campaign was open to all, anyone could have participated and I'm 99% certain that some users had multiple accounts (or borrowed from friends). An example would be that a bounty hunter named xyz123 publishes an article on Medium, where username on Medium was example987.
Then another boutny hunter applies for my bounty. This bounty hunter is named example987 and he publishes his article on Steemit. That article is very similar to one user xyz123 published on Medium... circumstantial evidence for sure, but almost surely foul play. :)
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I am not afraid to do KYC
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KYC for protect
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The thing is not in the fact if the should or should not - the thing is they are obliged to do that by law
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I would understand if it is STO, but if it is just an ICO there is no way I would accept that they will require KYC for bounty hunters and airdroppers, KYC is only for the investors to detect fraudsters.
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My believe is that most of the bounty campaigns or projects requiring kyc from bounty hunters, have ulterior motive behind it. Which is why there are incidences of identity theft.
I have decided that i would not participate in a project that requires kyc from bounty hunters.
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But, the real question, Should ICOs require KYC for Bounty hunters & Airdrops ?
The Know Your Client (KYC) rule is an ethical requirement for those in the securities industry who are dealing with customers during the opening and maintaining of accounts.
/SNIP/
Thus, here we understand clearly that this is applicable when there is an investor / broker relation, but airdrop hunters and bounty hunters are NOT investors, thus i see no reason for ICOs to require KYC from them.
Please share your views below.
I agree with OP that KYC is important in dealing with project customers, there is financial dealing between project team and the customers. This KYC also sometimes required to avoid money laundering related to crimes and terrorist. I agree with this, and necessary.
But if KYC related with bounty hunters and airdroppers, it should not suitable. One key point of bounty is advertising, if more accounts participate in a bounty then the advertising will be better.
One thing to be concerned is fraudulent by stealing other participant jobs and fake account. The point that must be prevented in bounty is things that are detrimental to the bounty goal of advertising and harming other bounty participants without the slightest effort.
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In my own perception, Kyc is not necessary for bounties. I remembered during 2017, lots of members in bitcoin talk joined in the ico and got earned a lot without submitting their KYC, and some of ICO by that time required it but in the end, they never give the rewards. In short, submitting KYC in any bounty campaign has a risk involved to be honest with you guys.
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In my own perception, Kyc is not necessary for bounties. I remembered during 2017, lots of members in bitcoin talk joined in the ico and got earned a lot without submitting their KYC, and some of ICO by that time required it but in the end, they never give the rewards. In short, submitting KYC in any bounty campaign has a risk involved to be honest with you guys.
Same experience and thought here. Bounty hunters are not investors. That is a fact. I believe that only investors are required by the authority to undergo KYC to make sure that they are not residents of a country that forbids such kind of activity. Those projects that require bounty hunters to undergo KYC are just in for an excuse( as I stated on the other thread concerning KYC implementation regarding bounty hunters) to narrow down participants they need to pay.
I have witnessed lots of projects that require KYC ends up being a scam. Possibly they use that KYC thing to phish for identity in order for them to sell those identities on the market.
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Some ICOs are now requiring KYC for bounty and airdrop distribution,
The nasty trick is that they keep this crucial information till the end.
But, the real question, Should ICOs require KYC for Bounty hunters & Airdrops ?
Some lawyers are advising ICOs to do that, but is it really necessary ?
What is KYC and when is it needed ?
KYC: Know your customer is the process of a business verifying the identity of its clients and assessing potential risks of illegal intentions for the business relationship.
The Know Your Client (KYC) rule is an ethical requirement for those in the securities industry who are dealing with customers during the opening and maintaining of accounts. There are two rules which were implemented in July 2012 that cover this topic together: Financial Industry Regulatory Authority (FINRA) Rule 2090 (Know Your Customer) and FINRA Rule 2111 (Suitability). These rules are in place to protect both the broker-dealer and the customer and so that brokers and firms deal fairly with clients.
The Know Your Customer Rule 2090 essentially states that every broker-dealer should use reasonable effort when opening and maintaining client accounts. It is a requirement to know and keep records on the essential facts of each customer, as well as identify each person who has authority to act on the customer’s behalf.
The KYC rule is important at the beginning of a customer-broker relationship to establish the essential facts of each customer before any recommendations are made. The essential facts are those required to effectively service the customer’s account and to be aware of any special handling instructions for the account. In addition, the broker-dealer needs to be familiar with each person who has authority to act on behalf of the customer, and the broker-dealer needs to comply with all the laws, regulations and rules of the securities industry.
source : https://www.investopedia.com/terms/k/knowyourclient.asp
Thus, here we understand clearly that this is applicable when there is an investor / broker relation, but airdrop hunters and bounty hunters are NOT investors, thus i see no reason for ICOs to require KYC from them.
Please share your views below.
It is obviously required to do kyc verification before participating ico, not 4 bounty hunters. But sad reality is most scam project's creating fake ico websites & collecting your documents for misuse.
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In my own perception, Kyc is not necessary for bounties. I remembered during 2017, lots of members in bitcoin talk joined in the ico and got earned a lot without submitting their KYC, and some of ICO by that time required it but in the end, they never give the rewards. In short, submitting KYC in any bounty campaign has a risk involved to be honest with you guys.
I am with your suggestion, In 2017 most of ico was happened without kyc. But today even 4 bounties required kyc like Radix DLT: https://www.altcoinstalks.com/index.php?topic=162432.0
Most of the bounty hunters is wasting valuable time. Because to get payment, it is impossible u will not receive any single from it.
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I can understand wanting KYC is they are investing actual money into the ICO, but that's different from bounties and airdrops of course.
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Yes ICOs require KYC for bounty hunters and airdrops. Its for the security purposes.
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For me it would be perfect, but cheats who abuse with multiple accounts would not like. I understand that KYC makes many people do not want to participate in bountis for example, and there would be few users promoting a project, but that project would have the best and most loyal.
Right now I am thinking of something like a "central registry" of users who have passed KYC or some kind of verification, and that only those users could participate in bounties in this forum. I know it's crazy, but dreaming is free (for now).
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No because the reward from the bounty or aidrop are very low and most of the people are not accept to make the kyc for low payment.
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I don't think I am willing to do KYC and hand over my personal information to a certain project without knowing its feasibility and exchange a few dollars in the project's token. Recently a project, PayFrequent, also required airdrop hunters to complete KYC in order to receive $10 in PAYF tokens, however the project team then disappeared.
And I think all information about those airdrop hunters is being misused.
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Some ICOs are now requiring KYC for bounty and airdrop distribution,
The nasty trick is that they keep this crucial information till the end.
But, the real question, Should ICOs require KYC for Bounty hunters & Airdrops ?
Some lawyers are advising ICOs to do that, but is it really necessary ?
What is KYC and when is it needed ?
KYC: Know your customer is the process of a business verifying the identity of its clients and assessing potential risks of illegal intentions for the business relationship.
The Know Your Client (KYC) rule is an ethical requirement for those in the securities industry who are dealing with customers during the opening and maintaining of accounts. There are two rules which were implemented in July 2012 that cover this topic together: Financial Industry Regulatory Authority (FINRA) Rule 2090 (Know Your Customer) and FINRA Rule 2111 (Suitability). These rules are in place to protect both the broker-dealer and the customer and so that brokers and firms deal fairly with clients.
The Know Your Customer Rule 2090 essentially states that every broker-dealer should use reasonable effort when opening and maintaining client accounts. It is a requirement to know and keep records on the essential facts of each customer, as well as identify each person who has authority to act on the customer’s behalf.
The KYC rule is important at the beginning of a customer-broker relationship to establish the essential facts of each customer before any recommendations are made. The essential facts are those required to effectively service the customer’s account and to be aware of any special handling instructions for the account. In addition, the broker-dealer needs to be familiar with each person who has authority to act on behalf of the customer, and the broker-dealer needs to comply with all the laws, regulations and rules of the securities industry.
source : https://www.investopedia.com/terms/k/knowyourclient.asp
Thus, here we understand clearly that this is applicable when there is an investor / broker relation, but airdrop hunters and bounty hunters are NOT investors, thus i see no reason for ICOs to require KYC from them.
Please share your views below.
I don't think KYC is necessary for bounty hunters, this days the young ones have more influence in social media and many has no drivers license or valid I'd and some are scared of sharing identity to unknown sights. That doesn't me a you won't give them the job to help advertise your project, as far as I know your aim is the fame and awareness of the project and hunters just need their reward.
The KYC should be for the customers or investors in that case.
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in my opinion it is a useless verification, no ico / bounty should request it or at least do the kyc verification only for investors but that is not managed by the organizers / team of the ico but by an external trusted company, for the bounty hunters i do not see its usefulness
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Most of the ICO's and Airdrop requires the user KYC for verification. But there are many scam projects in the crypto market that runs the airdrop for stealing user information. So, do not give your private information with fake project. Must study the project before submitting the KYC.
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Many ICO project are simply scam and I think it is quite dangerous if they use your KYC documents for doing something illegal after getting your KYC documents. The risks seems to be too huge for giving away your KYC documents to strangers online.