How Competitions Create an Active Community in the Crypto Sector by@Sergeenkov

How Competitions Create an Active Community in the Crypto Sector

Andrey Sergeenkov HackerNoon profile picture

Andrey Sergeenkov

Cryptocurrency researcher

Cryptocurrencies are regarded by some as the most ideal investment asset in the 21st century. As there are many projects and options, the sector tends to be extremely competitive. In that regard, many crypto projects and exchanges create reward systems via competitions, in order to create an incentive for users to utilize their platforms. 

Airdrops are the traditional example of platforms marketing their projects by giving tokens away for free. Tokens are usually given away not only to distribute the supply but to create interest as well. However, the era of airdrops is lone gone. Rewards are not as great as they used to be and the token themselves don’t usually make it that far in terms of price and utility. 

As the next step, some crypto developer teams introduced bounty programs. Since many projects require marketing in their ICO phase, where they collect funds, the idea of a bounty program was born as a way to reward users who promote the project in exchange for tokens.  However, the problem with this kind of reward system was that people who marketed the project did not have a guaranteed reward, as the entire program was based on the fate of the project’s ICO success.

Given the messy state of affairs, the cryptocurrency community can now only rely on competitions. They can be creative, requiring users to create art or other valued content, or they can be based on trading activities. 

Binance is a renowned exchange famous for its variety of events and competitions. Their latest competition occurred due to the launch of their futures platform, where users are incentivized to test two trading systems. The sum of all rewards is worth $216,000. Of course, many other competitions caught the attention of major crypto news platforms.

While exchanges make a substantial effort to reward users for using their platform, it can be a tiresome process to actively use multiple crypto exchanges. Regarding an exchange aggregator SwapZilla there are more than 240 crypto exchanges and the biggest exchanges only take less than 2% of the total market.

Vinci’s Got Talent

As a step toward uniting its community, Vinci decided to reward creative traders with a sum of $100,000, which roughly amounts to 585 ETH. Vinci is a project that developed a messaging and social media application that features cryptocurrency payments.

The challenge of the competition is to provide a photo or video, where users can do almost anything to show off their creative side. Users are incentivized to dance, draw, sing, and other similar activities. 

Apart from sending the video or photograph, participants are also required to subscribe to the official Vinci YouTube channel and follow the project on Instagram. The competition lasts between the 16th and 27th September, with the results announced on the 29 September. 

The project has recently participated at the World Digital Summit in June 2019. Vinci’s CEO, Gary NG, discussed the recent trend of the cryptocurrency market with industry leaders such as Vitalik Buterin, Chris Lee, and Ted Lin.

Binance - ‘Battle for Futures’

To market the launch of their new futures trading option, Binance launched a five-day-long competition that incentivized users to test two Futures testnet platforms and pick the best one. Traders who successfully voted for the platform that won the competition will receive a 50% trading fee discount. 

Additionally, traders also have 100,00 USDT in stimulated funds, which they can actively trade on both platforms and receive a reward by the end of the competition. The total reward is 5,000 BNB for the entire competition, with the best trader receiving 1,000 BNB. In total, the reward’s amount to $216,000.

Binance is an exchange that is keen to interact with the community. Both competitions and events are frequently created, where traders are rewarded for participating on the platform. The launch of the futures reward was described as a major milestone by its CEO and founder Changpeng Zhao.

OKEx Perpetual Swap Trading Competition

The OKEx exchange decided to celebrate the release of its perpetual swap trading feature by introducing a simulated trading competition that rewarded users for using the new feature. The feature allows users to create futures contracts, similar to the platform Binance recently introduced. 

However, a perpetual swap contract is an upgrade of futures trading, where there is no final deadline for the contract to be completed. In essence, buyers never have to buy and sellers never have to sell.

While the top 30 traders would receive a sum between $300 and $3,000, the best trader would be rewarded with a helicopter. The idea of rewarding users with helicopters created great interest in the crypto community, with some being amazed by the strange reward. 

BitForex Futures Competition

Coming from another exchange, Bitforex recently held a competition to celebrate the integration of their new futures trading feature. The competition included a simulated testing platform where users with a demo account had 1.8 million USDT in their wallet. 

Traders who participated and actively used the feature with their demo account were rewarded with BF tokens worth $20,000, $8,000 in ELF tokens, $3,000 in ACT tokens, and $1,500 in KCASH.

While only highly-experienced traders tend to create futures contracts, a testing platform for the feature motivates all users to learn about the highly-technical form of financial trading.

Binance Lamborghini Competition

As mentioned before, Binance seeks to create a vibrant community that is regularly rewarded for being active. To achieve that, the exchange creates competitions from time to time where traders can be potentially rewarded with cryptocurrencies, and sometimes, extravagant products.

To celebrate the new year, Binance partnered with the Monaco project to give away a Lamborghini Huracan in a raffle. The Monaco project, that allows crypto holders to store their assets on a Visa card, decided to sponsor the project and gather interest in their project.

To win the car, users who traded the project’s token had to have the largest trading volume of the token on Binance. There were equally amazing rewards for other users as well, with the 2nd place gaining tokens worth $11,000 and the 3rd place rewarded with tokens worth around $4,000.

Disclaimer: I do not have any vested interest in any of the mentioned projects. The views and opinions expressed are those of the author and is not investment advice. Trading of any form involves risk. Do your research.