AUS
NZ
UK
CA
USA
IND
.jpg)
Highlights
- Crypto crowdfunding is arguably a revolutionary technology, having many advantages over conventional methods of crowdfunding, which is done through fiat money.
- Spearheaded by blockchain technology, crypto crowdfunding is not only decentralised but also helps reduce transaction fees.
- Ukraine’s government has shown huge interest to crowdfund its response to the Russian invasion.
Crowdfunding is not a new concept; numerous start-ups and new business ventures are raising money from a large number of people online in this digital era. However, blockchain has ushered in a new era of crowdfunding, wherein people can donate or contribute in the form of cryptocurrencies like Bitcoin and other altcoins to projects, people or associations, so as to develop ideas.
Do Read: Kickstarter builds blockchain-based crowdfunding platform. Here’s why
Source: © Alexeynovikov | Megapixl.com
Advantages of blockchain technology in the crowdfunding arena
- Blockchain, being decentralised, does not rely on any platform to raise funds. This means creators and investors are not obliged to abide by rules and regulations of conventional crowdfunding platforms on the internet.
- Moreover, blockchain helps in the drastic reduction of transaction fees, which otherwise are relatively high in normal crowdfunding platforms.
- Any project related to the blockchain-based crowdfunding model can be funded from anywhere across the world. Just an internet connection and adequate crypto funds are required to get started for contributing to these projects.
- Blockchain-based contributors receive immediate fractional business or product ownership, as compared to contributing money through traditional crowdfunding platforms and waiting for weeks or even months to get the promised ownership.
Interesting Read: What are NFTs? Take a look at top 5 NFT marketplaces
Crypto Emerges As A New Means Of Crowdfunding Method
Ukraine’s call for crypto crowdfunding
One of the latest examples of cryptocurrency crowdfunding can be seen in the recent tweet of Ukraine's Vice-Prime Minister, Mykhailo Fedorov, wherein he urged people to send crypto donations to help in the fight against Russian forces. Several local and non-profit businesses in the troubled country mirrored the said request.
Related Read: Binance says no to Russian user ban despite Ukraine's request
This saw numerous non-governmental organisations and volunteer groups coming forward and successfully raising over $5 million within days.
Moreover, the Ukrainian government has accumulated more than $52 million in cryptocurrency donations and has deployed around $14 million towards protecting its country.
Bottom Line
In this tech-savvy world, cryptocurrencies have now become a significant crowdfunding method, for they allow quick access to funds and remove intermediaries from the transaction process, which may cause a delay in the transfer process.
Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.
