Crowdfunding with Cryptocurrencies

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This month we take a look at some of the platforms offering crowdfunding through cryptocurrencies.

We expect blockchain funding to slowly but surely compare to VCs or Kickstarter-styled funding into ideas and startups, in the coming years. The future of crypto tokens will however depend on its reliability, clarity and legality in the various jurisdictions that it can be used and transacted.

For the uninitiated, cryptocurrencies are digital currencies that uses a peer-to-peer system such as bitcoin. They are digital currencies in which encryption techniques are used to regulate the generation of units of currency as well as verify the transfer of funds, operating independently of a centralised authority or bank.

According to Coinstaker’s definition: Crypto Tokens represent a specific value and each cryptocurrency token embodies a tradable good.   This means that crypto tokens can be used to represent a share in a company or can be used as central committee voting rights. They are often used to raise funds in a crowdsale (A Crowdsale is a new way to use cryptocurrency technology to issue tokens that can represent shares or equity in a company).   With the year 2016 having seen more than US$ 200 million worth of cryptocurrency investments raised via Initial Coin Offering (ICO is an unregulated means of crowdfunding via cryptocurrency).

Here are some news updates on the topic:

Singapore-based platform is set to enable future project creator to raise funds for their campaigns in Ethereum and Bitcoin by 2018. (Ethereum and Bitcoin are cryptocurrencies that use the Blockchain technology).

According to the CEO of FundYourselfNow, Jack Ser: With the recent mainstream acceptance of virtual currencies such as Bitcoin, we want to build an ecosystem that offers entrepreneurs an alternative funding raising platform for their product, with minimal technical and marketing knowledge.

There are more developments happening, those from other online platforms that help connect crowdfunding and cryptocurrencies such as Tokenly to those companies creating their own cryptocurrency like StartCOIN. According to the people behind StartCOIN, they aim to be the first stable digital currency created to promote and support crowdfunding. 

The bottomline in cryptocurrency-based crowdfunding is how compelling the end-users find it to pledge their support to campaigns. In the coming months we will be sharing more updates with you on this developing space. Tell us what you think about the latest forays into cryptocurrency and crypto-token crowdfunding.