Crowdwiz Review - 'Collective Wisdom' or a logical fallacy?

in ico •  7 months ago

ICO Idea

CrowdWiz brings the power of ‘collective wisdom’ to crypto investments. They’re building a platform where entrepreneurs can create Initial Fund Offerings, and where the members of those funds will have voting say in how the projects act and operate. People will be able to draw on the power of their combined efforts, and invest in those funds that are tracked through the WizExchange.

They’re also positioning WizLending, WizInsurance and WizProperties should they raise 20M - but these aren’t explained in detail in the white paper. WizStore, one of their 10M objectives, is an app store where developers can create new offerings backed by the CrowdWiz ecosystem - ie. new voting and trading mechanisms.
How does it work?

CrowdWiz will be a series of platforms that enable individual investors to have more say in the funds in which they invest.

First, individuals create Initial Fund Offerings. Next, people buy the crowd token for that IFO and become voting members of that fund. Afterwards, the fund goes about normal operations - for example, buys and sells crypto after collecting votes from the members of that fund. All of this activity is tracked in the WizExchange, where new CrowdWiz members can compare the performance of various funds.

The main driving idea behind the platform is that there’s wisdom in listening to the majority. This by and large holds true in our modern Western philosophy of thought - where we celebrate democracy - but it’s worth noting that ‘argumentum ad populum’ is the logical fallacy wherein people will agree that something is true because the majority agrees it’s true. This has been proven time and again to be a dangerous concept, and one that some people will warn against. When contacted to comment, CrowdWiz support says ‘There are different voting systems and tools which can be implemented in your particular fund.’ This makes sense, given that these tools and features would alleviate the risk involved with the above logical fallacy.

In a broader sense, the white paper says:

‘Entrepreneurs can benefit from CrowdWiz by discovering accessible ways to finance their projects and business ventures without having to comply with the entry barriers that large financial institutions such as banks and investment firms place in their way.’

This leads one to suspect that Initial Fund Offerings might encompass far more revenue-generating ideas than simply investing in or trading crypto - which unlocks a world of investment that can be lucrative for all players.
Why blockchain?
CrowdWiz continues the blockchain traditions of lessening barriers to entry, removing middlemen and ‘market intermediaries,’ restrictions for it’s members and throughout these processes is democratizing and decentralizing the investment process. CrowdWiz’s success lies in their members realizing more of the profit share for their investments than they would find in traditional investment vehicles.

Why token?
The WIZ token allows CrowdWiz to raise funds for their various goals. On top of that, individuals will be able to launch their own Initial Fund Offerings and tokenize their investment strategies - the benefits of which are shared among the Fund’s token holders. These IFO tokens can then be traded on CrowdWiz’s proprietary market, WizExchange.

The WIZ token governs access to all of CrowdWiz’s platforms and every action involved - from creating or accessing funds, using their WizExchange for comparing and investing in funds or voting on CrowdWiz strategic affairs - having and using WIZ tokens will have more value over time. This will ensure continued - and increasing - demand, which should drive the price of the token.

How is revenue generated?
According to the white paper,

‘The revenues of CrowdWiz Ltd. will come from consulting services to companies that use the CrowdWiz platform and from its assets.’

The idea is that they’ll raise funds using their ICO, then use those funds to develop the platforms to the point where there’s many users taking part in the various aspects being offered. While more people adopt the CrowdWiz ecosystem, the interest by large organizations will increase, and CrowdWiz’s values are aligned with 0 fees for the end-user while collecting hefty fees for large organizations that want to make an impact by utilizing CrowdWiz.

Competition & challenges
Blackmoon Crypto aims to have competing fund managers create their own funds that people buy into and share the proceeds - where CrowdWiz builds on the concept that there’s power in collective decisions and actions. Where Blackmoon’s funds are governed by one person, CrowdWiz allows the investors to have ultimate responsibility for their actions.

Page 46 of the CrowdWiz white paper does a great job of outlining risk factors for their platform:

Token type & technology
Ethereum token and a proprietary secondary market of Initial Fund Offerings that have Crowd Tokens.


RISK score depends on basic factors such as website, whitepaper, team behind it, transparency, legal issues, security for investors (escrow etc.)

NOISE score depends on marketing traction, social channels, paid ads, activity in communities, slack, telegram etc.

FEASIBILITY score depends on how possible the execution is. Can the idea really work and make a place in the market?

POTENTIAL RETURNS score depends on the project’s financial viability - provided everything falls into place, can investors expect high returns or not?

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