Initial coin offerings (ICOs), as popular as they have become, have been proven ineffective. The lack of transparency and accountability has made investors wary. Realizing these and other shortcomings of ICOs, WeBuy approaches crowdfunding through another, far more effective and convenient way – through Production-Oriented Token Sales which tackle all of ICOs’ underlying problems.
Entering a Vast Market
WeBuy introduces the very first on-demand advertising platform, based on a complex web of Buyer Referral Networks (BRN), completely created and governed by users of the platform.
Entering a $250 billion market, WeBuy gets rid of unnecessary third parties and doesn’t put itself in the middle. The buyer’s private information is never revealed to sellers or to any other third parties, which puts them behind the wheel when it comes to their very own privacy. Furthermore, WeBuy’s services are and will always stay 100% free for buyers, however sellers will have to purchase ads.
Leveraging an impressive geolocation feature called “SellMe”, sellers will be able to localize potential buyers who have already expressed their interest in the seller’s product. Buyers, on the other hand, will only be reached by ads they have explicitly required.
Apart from greatly improving the user experience and efficiency for both parties, WeBuy also provides actual incentives to the sellers and buyers. The former will receive a joining grant of $500 from WeBuy in the form of WBY tokens for becoming a part of BRNs. The individual that invited the store into his/her BRN will enjoy rewards for doing so forever. The latter, on the other hand, will be awarded a portion of the fees received for agreeing to see an ad and to be reached by the sellers.
Fixing What’s Broken – a Twofold Solution
All of the above enables WeBuy to solve a lot of the issues which are currently riddling the field of online advertising. The market suffers from the fact that platforms are delivering less than targeted ads to audiences who are either passive or downright defensive against intrusive tactics of the kind.
This creates serious inefficiencies. Buyers are oftentimes overlooked, opportunities are missed, while sellers keep inflating their marketing budgets without much merit.
On the other hand, we have the non-functioning ICO crowdfunding model. While 2018 saw an influx of investors and thousands of ICOs carried out, a lot of them turned out to be scams. As it stands, the ICO funding model is also suffering from a range of issues such as:
- Lack of formal obligations on behalf of the project
- Misappropriating funds allocation
- Lack of accountability
- Lack of transparency
- Investors are incapable of reacting to failing projects
Solving these issues, WeBuy introduces Production-Oriented Token Sales (POTS). Unlike ICOs, this approach to crowdfunding is much more transparent and it invokes project responsibility.
With POTS, projects hold several token sales which are used to raise funds. Each one of these, however, is funded based on a preliminary published plan with predefined tasks to be completed with the raised funds. At the end of the given period, the project issues a report with what has been completed.
This guarantees the transparency as well as the proper fund allocation. At the same time, it provides the investor with a clear opportunity to compare current and previous performance reports and to determine whether his investments are worthwhile.
WeBuy will carry out its first POTS starting January 7th on the Stellar Exchange. WBY tokens will be denominated in Stellar Lumens (XLM) and they will initially cost $0.25 each. WeBuy may announce bonuses in the future.
What do you think of WeBuy’s approach to crowdfunding through POTS? Don’t hesitate to let us know in the comments below!