GEORGE TOWN, CAYMAN ISLANDS / ACCESSWIRE / April 30, 2019 / Crowdfunding has been a big trend recently where the collective effort of friends, family, customers, and individual investors help to raise capital. This is done either on social media or other crowdfunding platforms. When individual people/groups/ start-ups are trying to raise capital, they primarily depend on their networks for greater reach and exposure.
Although crowdfunding is a popular method to gain funds, this market is seeing a downfall in the past few years. There have been many cases of frauds and mismanagement which have led to a decrease in projects being invested on the crowdfunding websites.
A vast majority of token sale-backed projects are dying. One such project is Pledgecamp, founded in January 2018, a project that counts with big names in the tech space among its advisors, including Randi Zuckerberg and Prince Abdullah.
Pledgecamp is an upcoming blockchain-protected space where funds raised are held within a smart contract, to be released to creators only after promised milestones are met. This is designed and developed by Slack and Coinbase designer MetaLab.
Randi Zuckerberg, the Pledgecamp advisor, explains how the money from investors is held in the form of Escrow and is not released until creators meet some milestones.
Now, this is the first time ever in the history of Crowdfunding that investors can be perfectly sure about their money, and the receivers of funds will be paid only when they achieve certain milestones. This means, no progress, no funds. This blockchain-powered security system instils transparency and accountability in the whole process.
In a statement, Jae Choi, Pledgecamp CEO explained that “Pledgecamp is crowdfunding on blockchain – we call it crowdfunding 2.0. It is a next-generation crowdfunding platform that unites the decentralized systems of crowdsourcing and blockchain.”
The goal of this project to level ground between companies and the community so that investors are backed and everyone gets a chance to become an entrepreneur.
it all work?
The central question around Blockchain based projects is whether or not the blockchain is actually an improvement to solutions that already exist. At Pledgecamp, the blockchain will benefit backers and creators.
Campaign Deposits – Creators will first deposit a certain amount of PLG token on the blockchain which they will be able to each back in parts. The PLG tokens replace the listing fee. Rather than starting with a centralised approach, this company start with a decentralised approach where all the backers of a project will make an informed and educated decision on the legitimacy of any project.
Backers Insurance – As mentioned, a certain portion of invested money will be held in escrow via a smart contract. Towards the end, creators will have to convince the backers on the progress of the project.
One of the two things can happen, either the backers vote for remaining funds to be released if they are satisfied with the progress or if backers don’t have any confidence in the project, then the remaining funds would be distributed back among the backers. This way, if the project turns out to be a scam of failure, backers get a part of the money back.
Aim for the New Global Frontier
The irony lies in how the company is raising funds from Kickstarter (a crowdfunding platform) to raise funds for Pledgecamp, a project that can leave Kickstarter and similar projects out of the market.
The Pledgecamp team stands strong among its minor crypto competitors in the market because of its industry experience, top advisors, and a stronger product. The A-list advisory panel is made of 15 high profile people like Randi Zuckerberg, Keith Teare (Founding Shareholder at TechCrunch), Matt Curcio (VP Data at Ripple), Jinen Kamdar (VP Buzzfeed), and Prince Abdullah (Saudi Royal Family).
Choi is a firm believer that the Blockchain based system will be an improvement to the whole Crowdfunding market where a Token Economy that incentivizes Backers to contribute more than just their money to projects.
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