How PrimaBlock Removes the Middleman Risk in ICO Fundraising

Creating a syndicate is not a new thing in finance.

One person agrees to go out and raise money on behalf of a company, organization, or political campaign. S/he solicits friends and strangers alike, communicates the value of the recipient, and then bundles the money for the end recipient.

In return for all of this, the “bundler” gets a fee, commission, etc.

There is one weak point in this story, however, as you can probably see. The money goes to a centralized point of control, the bundler, and both the donors and the ultimate recipient have to trust this person and their security systems for keeping the money safe.

In the category of “how blockchain can help us do what we already do” (what I call Phase 1), is PrimaBlock, which helps syndicate leaders raise ETH funding for ICOs.

They do all of the same things with one critical difference. You don’t have to trust the “bundler.”

That’s because she doesn’t hold the money. Instead, a smart contract does which only allows the money to go to the recipient, keeps track of the donors, and automatically sends the commission/fee to the bundler when the goal has been met.

If you want to see it in action (you will need a MetaMask wallet), you can check it out here at Peer Mountain’s PrimaBlock page. (Disclosure: I’m an advisor)