Crowdfunding Adopts Crypto: Revolutionizing The Market
Crowdfunding is a very big market that works on helping startups get up on their feet by funding their ideas- provided that their ideas are needed by the potential customer and are easy to be sold. However, it is not the best option for the slightly more egoistic startup owner or when it comes to paying back the money.
In 2012, Boomstarter.Network, which is a platform for crowdfunding, started using blockchain technology to change the market. They have acquired a huge hedge fund as they financially supported Dropbox and Telegram in their initial journey steps.
Their aim is to make their crowdfunding possibility border-free. So a startup does not have to be physically in the region to request funds, which can assist those in countries with non-traditional banking systems.
As we speak, the crowdfunding industry is spending over $6.5 billion on funding new projects. Existing fund-seekers, as well as potential ones, are hustling all around the world looking for their dream opportunity to create their favorite business.
Crowdfunding has seen roughly 50% pop in 2017. The numbers have been slowing down since then. However, what is definite is that the limiting nature of the current system with regards to slow funding and geographic restriction tend to make the process less worth-a-while, and sometimes, downright impossible for potential entrepreneurs to seek the funds.
How This May Work?
The closest platform to realizing a market boundless by borders is Kickstarter, as it allows startups in twenty-two different countries to be adopted. However, using crypto, the numbers will be boundless as every single person on the globe will be able to participate. At the moment, crowdfunding platforms are able to support one over three of the world’s startups, but the future can actually bear a much bigger percentage if crypto is implemented.
One edge that crypto will add to the business is the transaction speed. As of now, startups struggle with not being able to meet their financial needs as the crowd-funders take so long to transfer the money into their accounts. With cryptocurrencies, startups will be able to get their funds right away with no fear of not meeting their deadlines.
As for those who are not using cryptocurrency yet, Boomstarter.Network suggested they have all the startups in a cloud-mining pool so that they can keep track of all the crypto spent. Also, the fintech firm would offer tools to help the startups adapt to the crypto market.
This is the one best thing that crowdfunding can add to adapt the industry to cryptocurrency. Not only because they will be using new technologies, or because of the ease of transferring crypto. But, also, because of the millions of opportunities, they will give people who have great business ideas but have no means of traveling or visiting a different country solely for their fundraising.
While Boomstarter is not the first entity to think of implementing blockchain technology in the crowdfunding market, however, they are still the only one to think of solutions that address people who have still not trusted or utilized cryptocurrency. This gives Boomstarter an edge over other networks, which brings them closer to their goal of having the bigger share in the yet-to-unfold market.
Their issued token is starting to be in use as a means of funding, and as the market expands more and more, this will be looked back at as one of the biggest ideas to revolutionize modern business.