6 reasons why the market of crowdfunding need the blockchain

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Millions of entrepreneurs dream to turn their dreams into reality through crowdfunding. If the product is good, the entrepreneur raise enough money for production. Currently, the total market size for co-financing is estimated at 6.5 billion dollars.

2. The industry is ripe for change

Crowdfunding is growing rapidly: in 2017 the market volume jumped 49%. However, the forecasts point to a gradual slowdown. It is obviously due to the weight constraints. Traditional platforms are not able to meet the demand from start — UPS- prevent geographical limitations and very slow work.

3. The removal of geographic restrictions would lead to a sharp increase

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Existing platforms serve only a third of the total number of startups in the world. One of the most popular platforms, Kickstarter only accepts applications from 22 countries. With cryptocurrencies, crowdfunding will be efficient, fast and unlimited. This will spur demand and participation of startups from all over the world.

4. The removal of intermediaries will help startups thrive

The main problem of the existing crowdfunding sites remains the time it takes to get the money deposited by buyers. Startups often have to wait for weeks and months, without having access to financing in order to proceed with the development of the product in accordance with the plan. This happens all the time — the current system relies too heavily on third parties such as banks and payment system.

Using the blockchain, smart contracts and crypto startups can get money almost instantly, without intermediaries.

5. Mining as a tool of engagement

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The idea is to unite supporters of start-up mining pool to generate sufficient amounts of cryptocurrency.

This unique intangible way to support start-UPS solves the problem when users only distribute the offer in social networks, not investing. For startups this is a promising way of organizing an active and motivated community.

6. Fair competition will change the market by using blockchain

Other teams are also trying to solve the problems of the growing market for co-financing. However, while none of them provided a complete solution, covering the audience is not particularly familiar with the world of cryptocurrency.

Providing versatile tools available for startups all over the world, you can increase the demand and interest of the public. This will give a positive impetus to the price of tokens and will attract a large number of entrepreneurs, enthusiasts and investors.

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