Fundraising in Crypto: Advantages
In the previous post we described the limitations of the major fundraising platforms which are unavailable to 90% of the world’s population due to the restrictions posed by banks and payment systems.
It’s obvious that a fundraising platform that works with cryptocurrencies doesn’t have this problem. Blockchain doesn’t care about your continent and your citizenship. All that’s needed is to remember your wallet’s password and to keep your seed-phrase secure.
To be sure, fundraising in the cryptocurrencies has many other advantages over traditional fiat fundraising.
Inefficient withdrawal
For example, most of the popular fundraising platforms work on the basis of “all or nothing”. Only the projects that raised all 100% of the target amount can receive the funds. If a project fails to raise the entire amount during the set time of the fundraising, the funds are returned to the donors, the fundraiser doesn’t get a cent.
Some other platforms allow getting the funds even if the target amount isn’t met, but in that case the request of the fundraiser to get the funds has to be approved by the platform and the transfer of the funds takes at least a few days. In either case, the fundraisers don’t get the funds automatically as soon as they are donated.
Centralization
Furthermore, existing fundraising platforms are centralised. The owners of the platforms define what projects are allowed to raise funds. They can reject any fundraising initiative based on their own views and can even stop the fundraising that has already started. The community of users doesn’t make decisions about the principles on which the platform operates and is not included in the governing body.
Authoritarian control
Finally, fundraisers on any platform that uses fiat money are controlled by the governments and the special services. It creates many problems for the civil initiatives in the authoritarian and totalitarian countries as the governments of those countries can block bank accounts of the organisations that they don’t like and may even oppress the citizens that donated funds to the project that’s “not good” from their point of view.
Our solutions
The cryptocurrencies don’t have these problems.
All wallets in the blockchain are anonymous and independent. None of the governments can arrest or block those wallets.
The funds are directly transferred from one user to another, with no middleman.
Tokenization can provide the decentralization and allow the users to participate in the governing of the platform.
The potential and the possibilities of a fundraising platform that works with the cryptocurrencies are so massive and obvious that it’s even hard to believe that such a platform hasn’t yet been created. There are strong reasons to believe that with the active development of cryptocurrencies the demand for such a platform will inevitably grow in the future.
Help Each Other is devoted to bringing this future closer and to meet this demand.
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