Crypto Startup Power Ledger Gets Criticized For Rewarding Rogue Bounty Hunters
A blockchain-based peer-to-peer electricity trading startup in Australia, Power Ledger, is on fire for rewarding bounty hunters who used unscrupulous means to drive interest in its crypto token.
The Financial Review reports that Power Ledger has been criticized for allocating free tokens to bounty hunters who made false claims regarding the startup with a view of increasing the uptake of the Australian crypto firm’s tokens.
Power Ledger’s token, POWR, is trading around 20% below the issue price currently and has a market cap of over US$30 million.
Power Ledger has however defended itself saying that it only used the bounty hunters because the startup wanted to create “grassroots support for the currency sale.” The platform said 1.5 million tokens were set aside for the bounty hunters.
According to Dr. Jemma Green, the chairman and co-founder of Power Ledger, the startup had no way of supervising the behavior of the bounty hunters:
Jemma said: “Rewards were offered to community members to share our project with their own networks. The means by which they did so were outside of our control, and we made it clear that our core supporters who believed in the project and the future of renewable energy were the main audience for this program.”