- Well-established crowdfunding service adds blockchain to go global
- The crowdfunding market is ripe for blockchain disruption
- Crowdfunding on blockchain is expected to be the fastest growing application
As you look at the performance of cryptocurrencies and ICOs over the past 12 months, you’d see positive returns for just a quarter of the time.
Now in a prevailing bearish market, everyone is looking for a source of growth and profit. The potential lies in the very principle of crowdfunding: it will remain an important economical vehicle for raising operational capital for startups.
Crowdfunding: a profitable business model plagued by intermediaries
As a business model, crowdfunding has proven its efficiency. It usually involves an online platform promoting startups that sell pre-orders on their product to validate the idea and raise the capital. In return, buyers get rewards, most commonly big discounts or privileges. Platforms earn commissions and startups thrive with happy customers.
However, the global capacity of the crowdfunding market remains largely unused. The busiest services helping startups are currently serving only a third of the world’s entrepreneurs, plagued by restrictions that intermediaries impose.
Banks and payment systems set geographical boundaries, slow down the payments, and add the unnecessary bureaucracy.
The growth potential of crowdfunding is huge
This marketplace is long ripe for disruption. Many great projects are now discouraged to participate because of restrictions on existing platforms. And even those that do list often are faced with longer wait time to actually get the money for pre-orders sold.
Among well-established crowdfunding platforms, Boomstarter.Network is the first to tackle this issue in a comprehensive way. Operating profitably for six years, it is now breaking the mould by introducing cryptocurrencies and developing a blockchain ecosystem based on Ethereum network.
Using blockchain to boost the crowdfunding business model
Boosting the successful business model with a technological shift allows to remove intermediaries, lift geographical restrictions and bring fast funds transfers. The service becomes readily available to entrepreneurs around the world without any external restrictions.
In addition to regular crowdfunding operations, Boomstarter.Network claims to provide tools for backers to support startups by generating digital currencies using backers’ home computers. United in a cloud-mining pool, they can generate substantial amounts of digital money in favor of their chosen project. This offers a new opportunity for startups to build motivated and active communities.
Quenching entrepreneurs’ demand and earning together
The platform’s digital currency is designed to generate organic demand. It is needed for any startup to fund their campaign and to receive premium services.
The projections show that the value of Boomstarter coin will be amplified by the market share the platform gains when it goes live in 2019. Below calculations assume the full availability of 27 million Boomstarter coins without any speculative effect, which is likely to push the price above the intrinsic value.
Around three billion of the world population, with millions of current and future entrepreneurs, are now estimated to be underserved by the existing crowdfunding platforms. When they finally obtain the global fundraising tool, the demand will surge for Boomstarter coin as a means of enabling the all-inclusive crowdfunding.
Crowdfunding concepts have been around for centuries and are here to stay, reinvented. With blockchain technology, they can help millions of entrepreneurs to make their ideas profitable.