In a project’s pursuit of capital, crowdfunding is a popular destination.
According to Statista, businesses have raised up to $251 billion from crowdfunding initiatives in 2021, a figure expected to rise to $320 billion by 2026. Crowdfunding has brought the world some of its favorite products. Oculus, Meta Platforms Inc.’s (NASDAQ: FB) virtual reality headset, and Tile, Interface Inc.’s (NASDAQ: TILE) Bluetooth tracker, were both companies that sprung from the success of their crowdfunding campaigns on Kickstarter.
But these case studies may only represent the positives of the crowdfunding experience.
In a blog post, LenderKit provides a more objective perspective, showing the slew of fraudulent crowdfunding raises that have cost investors millions of dollars. Others have raised additional concerns like the forfeiture of intellectual property, the dependence on marketing for success and hidden fees, which have prompted project leaders to pursue alternative forms of community-based fundraising.
GoCryptoMe (CRYPTO: GCME) says it aims to fill this gap. Harnessing the security and anonymity of blockchain technology, GoCryptoMe built a decentralized autonomous organization (DAO) to hope to solve crowdfunding’s pitfalls while granting project leaders a secure venue for capital raises.
GoCryptoMe: A DAO For Crowdfunding The benefits of GoCryptoMe’s crowdfunding platform stem from the qualities of DAOs, which naturally favor the dilution of power and extreme security measures.
For example, on the GoCryptoMe platform, only the owner of the smart contract governing their campaign has access to the funds raised through the platform. Unlike other “central” crowdfunding platforms, the GoCryptoMe team has no access to the funds, or the specifics, of any campaign launched on the platform, giving campaign organizers full control over their projects.
GoCryptoMe’s democratic approach to crowdfunding might not require trust. DAOs are built on smart contracts, which are parcels of code that enact “if, then” statements and are already preprogrammed into each campaign. In short, smart contracts do the actions that typically require trust – like sending, receiving and holding funds – automatically and without the need for human interaction aside from voting.
The members in the GoCryptoMe DAO are there to provide governance to the platform in the rare occassions when illegal or egregious campaigns are launched. Under such circumstances, the DAO members may vote to remove the campaign off the platform. As a principle of trust, however, DAO members can never intercept donations – even from those going into inappropriate campaigns but can take the campaigns down if necessary.
The GoCryptoMe platform may not only open up the crowdfunding circle to almost anyone with access to the DAO, it does so in a way that is meant to not compromise security. In short, GoCryptoMe reports that it allows you to expand your investor circle while staying safe.
The Ethereum blog provides a concise summary of DAOs:
“If anyone tries to do something that’s not covered by the rules and logic of the DAO’s code, it will fail. And because the treasury is defined by the smart contract, too, that means no one can spend the money without the group's approval either. This means that DAOs don't need a central authority. Instead, the group makes decisions collectively, and payments are automatically authorized when votes pass.”
GoCryptoME: Additional Benefits Over Other Crowdfunding Platforms? Aside from possibly democratizing power and stringent security protocols, GoCryptoMe hosts a staking platform for its GCME (CRYPTO: GCME) token.
“As an added utility case and benefit to our holders,” the company writes, “$GCME has released staking pools that offer passive rewards in the form of GCME tokens. By using our staking DApp, token holders that choose to stake receive rewards. Revenue share from the GoCryptoMe crowdfunding platform feeds rewards into the staking pools in real-time via smart contract technology. As holders lock in their tokens, the price floor increases, as there is reduced selling pressure overall due to the majority of holders staking their tokens.”
GoCryptoMe’s unique blend of crowdfunding solutions and staking opportunities reportedly fills the gaps of traditional crowdfunding platforms while also introducing added benefits through passive-income generation.
Visit the GoCryptoMe platform to learn more.
Featured photo by Kenny Eliason on Unsplash
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