Start-up Blockchain commits to major crowdfunding sites to reduce the number of failed projects

A new blockchain platform is committed to establishing itself on established crowdfunding sites – and argues that, because of their lack of accountability, more projects are failing to deliver on their promises.

Pledgecamp says its approach is to offer transparency in the form of smart contracts and to ensure that entrepreneurs and the platform on which they host their projects are also invested in the success of a campaign.

One of the features of the startup is Backer Insurance. Instead of fully disbursing funds as soon as the goal is reached, project creators must propose "clear milestones for development" before contributions are paid. A secure wallet then guarantees that the funds are released progressively – the supporters being the only ones who have control over how their investments are spent, vote to determine if the goals have been achieved, and decide whether the next phase of the project should begin.

According to Pledgecamp, the blockchain is the only way to concretize this concept, because it suppresses centralization and gives power to those who put their funds at risk. The company's white paper explains: "Instead of requiring teams of lawyers, the creation of smart contracts is essentially free, the judgment is automated and the implementation guaranteed."

The campaign creator can decide the level of Backer insurance badociated with a project. Those who pay a larger portion of the funds to be protected in the Backer insurance benefit from a lower registration fee.

S tackle a problem of trust

Pledgecamp maintains that its solution is necessary because of the flaws in the services offered by the main current players, including Kickstarter and Indiegogo.

The start-up cites research that suggests that 85% of campaigns delay delay, while 14% fail completely. Pledgecamp also highlights statistics published by Kickstarter itself, which show that only a third of those who contribute to a crowdfunding campaign on the website end up doing it again. According to the blockchain platform, this is a "problem of trust" that needs to be solved for the industry to flourish: allowing companies to obtain funds from financial institutions and validate their ideas for products.

The startup says that many crowdfunding sites have not been able to innovate and offer technical features useful to entrepreneurs and contributors. Pledgecamp said its ecosystem would provide project creators with resources "in a secure and decentralized way" and give them the opportunity to hire skilled workers who could help them achieve their goals temporarily in their "market economy" ".

Moderation will also be a major factor in Pledgecamp's offering – and in the spirit of decentralization, this vital role will fall to the users. Those who contribute by organizing campaigns and removing those who violate the terms of use of the platform will be eligible to receive a portion of the registration fees generated by each successful project. Although Promise Tokens are the platform's main encryption currency, moderators who badign their Promise Tokens to Camp Actions can participate in this moderator role, as part of the two-chip economy. the ecosystem.

Advisors off list

Randi Zuckerberg, who previously ran marketing at Facebook, the social media giant founded by her brother Mark, is one of Pledgecamp's advisors. Matt Curcio, vice president of data at Ripple, joins her.

A limited symbolic sale begins on February 18th and lasts 30 days. The start-up is designing the platform in partnership with MetaLab, which has helped well-known products such as Slack and Coinbase. The launch is scheduled for the third quarter of 2019. As we approach this date, it is planned to create a knowledge center for project creators, to implement the user interface of the website and to complete the work on the back end and the intelligent contract of the platform. functionality.