As the volatile cryptocurrencies market is looking for niches of the long-term growth, one source of steady gains may seem not so obvious. Yet it is the very foundation of any ICO and a source of continuing growth. It is crowdfunding: building a new product together to receive an individual reward in return for the committed money.
Crowdfunding has been around literally for centuries. The same scheme behind the creation of the Statue of Liberty and some of Mozart’s concerts has recently helped EOS, Filecoin, and Tezos to secure billions of dollars in public contributions. World’s largest crowdfunding services like Kickstarter operating in a handful of developed countries or Boomstarter working in Eastern Europe have empowered new generations of startups and innovation by providing support for their ideas through rewards-based crowdfunding.
Intermediaries Restricting Innate Crowdfunding Potential
Despite this promising background, modern crowdfunding is facing big issues. In 2017 alone, it grew by an impressive 50%, yet projections show an imminent sharp slowdown. Created as a tool to test and leverage the demand by directly connecting startups and their supporters, crowdfunding is now plagued by intermediaries and bureaucracy.
Third parties are inevitably involved in all existing crowdfunding operations. They are payment providers, banks, and agencies that set various limitations. Some of the major hurdles are long processing of transactions, sometimes weeks, between startups and buyers and working only with entrepreneurs from the handful of countries. As a result, existing crowdfunding services are serving a mere third of the worldwide entrepreneurial community.
Disrupting Crowdfunding to Unleash Unlimited Growth
In order to grow further crowdfunding has to re-establish the direct link between sponsors and companies. It could be done by using the disruptive technology which crowdfunding allowed to thrive: the blockchain. A decentralized and distributed ledger of transactions where no intermediary is needed, without reliance on third parties like banks and payment processing systems.
Among the world’s most prominent crowdfunding services, only one is working towards the use of cryptocurrencies. After servicing startups from Eastern Europe for six years, Boomstarter.Network has become the first platform in the market to allow using digital money as contributions. By completely removing intermediaries with blockchain technology, Boomstarter has something bigger in mind: to bring crowdfunding back to the people.
Delivering Steady Profits with Blockchain
The idea of Boomstarter.Network is simple: shifting the technology while leveraging the existing profitable business model. This is the pattern followed by the most successful disruptors. And it has the great potential: the market size for rewards-based crowdfunding in 2017 was $6.5 billion dollars, with an almost 50% uptick from a year earlier.
With the classical crowdfunding market projected to slow down in the coming years, the use of distributed ledger is seen as a strong growth driver. It is capable to empower the millions of entrepreneurs worldwide who were previously not allowed to launch their campaigns, discriminated against by banks and payment systems.
According to market data and projections, the cryptocurrency that Boomstarter.Network is now issuing is set to grow 15 times from the current selling price.
The fintech company potential is underpinned by its considerate stance to crypto-newbies. It aims to involve the wider audiences by providing an easy tool to generate popular virtual currencies with their computers. The users then can contribute the crypto they mined to the startups of their choice. This scheme will help startups to develop very motivated communities, regardless of geography or income level.
Adding blockchain technology to an already profitable crowdfunding service means unleashing the intrinsic potential of the two-thirds of the world’s entrepreneurs. They are willing to crowdfund but are still not permitted to. This plan is not only set to thrive, but is also capable of building a rare sustainable environment in the unsteady world of crypto. This transition should be celebrated as a true point of growth, by the people and for the people.
Images courtesy of Shutterstock, Boomstarter.Network