Positive Sides of Decentralized Crowdfunding
Traditional fundraising is based on local or national investors. Decentralized crowdfunding opens up projects to a global audience of potential backers. Global access is helpful for creating some new opportunities for investors. It is not only helpful for Global investors but also fundraising projects can find huge adoption and acceptance for world investors. This access to a broader investor base increases the likelihood of securing the necessary capital to bring innovative ideas to fruition. So, it is a big opportunity to get good for nice projects.
Quality projects will be accepted by many people from around the world and it will be helpful for gaining a big amount of audience groups from around the world. The Global adaptation is helpful for both parties with the help of a decentralized fundraising project. It also democratizes investment opportunities by allowing small and retail investors to participate in projects that align with their interests. This is a good shift from traditional fundraising as it is creating a more inclusive and diverse range of backers to support innovative projects.
Eliminating intermediaries such as banks and financial institutions reduces the costs associated with traditional fundraising. As blockchain technology is used here, decentralized crowdfunding platforms are making the fundraising process easier. So here more of the funds raised to benefit the project directly. Tokens issued through decentralized crowdfunding campaigns often trade on cryptocurrency exchanges. It is a nice way of creating liquidity for early investors. This liquidity allows backers to buy or sell tokens, providing flexibility in managing their investments. The secondary market for tokens contributes to a dynamic system around the funded projects. Tokens may grant exclusive access, discounts, or voting rights within the project. This incentivization model enhances a community-dependent model.
~ Regards,
VEIGO (Community Mod)
Ofcourse like you beautifully highlighted reduced cost due to lack of any intermidiary is one of the great benefits of decentralized crowdfunding, thanks for sharing.
Crowdfunding is the source for many projects so that they can gather some money which can be used for the project development and later it can also boost the overall progress for such projects. With decentralisation it is really good and we can expect more transparency and better management of funds this way
Your article is very good. Nicely explained about Positive Sides of Decentralized Crowdfunding. I hope you write articles like this in the future.Thank you.