Why support a crowdfunding campaign: SmartBCH project
Crowdfunding, by definition, is a proven method of raising funds through a collective effort of friends, families, investors, or a large number of people. It is a systematic approach that brings in a large pool of individuals via the internet leveraging on the social media channels or, word of mouth, and increased referral traffic to the crowdfunding website for a greater reach and exposure to raise money for the support of a unique cause.
This is a viable approach to fund a project because it allows one to take advantage of the global funding resource by tapping into the potential of all people from all over the world. It also allows risk-sharing among many, thereby putting less pressure on individuals financially. A good form of crowdfunding provides a forum to engage with believers even before the product is launched, a really good chance of building loyal customers and supporters before launching the product.
One of the major reasons why Crowdfunding is organized is because it allows ventures to gain consumer feedback earlier in the process. Most successful small and big businesses use customer suggestions to better their production process, rate their product and finetune the service being rendered. It is important to note that Crowd financing allows entrepreneurs to gauge customer reactions, foster users’ ideas, test the product before it even hits the market, also saves a company from experiencing a huge financial loss as well as demonstrating that a business is ready and willing to listen to their customers.
Why Crowdfunding:
Frankly, entrepreneurs can testify to the struggles and difficulties in financing new projects or businesses. Crowdfunding has proven to be a great alternative to seeking funding for businesses, as users can do so without donating equity or even accumulating unwanted debt. Instead, entrepreneurs donate products and gifts to the donor community in exchange for capital. This rewards-based crowdfunding approach inspires and builds trust with the funder community.
Additionally, crowdfunding platforms are a great way to market a new business and generate brand awareness. Therefore, a successful crowdfunding round not only provides your business with needed cash but also creates a base of customers who feel they have a stake in the success of the business.
Why do people put their money into a crowdfunding campaign?
Raising capital is not all about financial forecasts, financial transactions, or business plans; it is ultimately all about trust. The word “crowd” in crowdfunding refers to individuals. Of course, in life generally, the higher the pain of risk, the more significant the issue of trust becomes. For this reason, investors don’t mind putting a few capitals towards sponsoring a project or charity; there is a general acceptance that you are not expecting to see that money again, by doing so the level of trust in the business or individual to whom you are giving the money does not need to be high.
On the other hand, if individuals were asked to invest thousands of Dollars or Pounds on a particular project, the situation is different. For some people, this is not the amount of money they can afford to lose. Therefore, most people have been locked out from the investment world where small businesses need a huge capital to be invested.
Traditional Fund-raising vs Crowdfunding:
The traditional approach for funders has channels like loans from banks, high net worth individuals, friends, and family. Whereas, the alternative-raising small chunks of money from a large pool of people-has been efficient because it facilitates the matchmaking between ordinary people who are interested in investing in special projects and ordinary founders who don’t have the access to collateral or large networks of wealthy individuals. The benefit the funders enjoy is that crowdfunding makes it possible to raise small amounts of money from a large number of total strangers.
Some of the numerous crowdfunding types include:
Donation-Based Crowdfunding:
This is the type of crowdfunding campaign in which there are no financial returns to the investors or supporters as the support towards an ideal cause which may be initiatives targeted towards charities, nonprofits, disaster relief, or medical bills.
Rewards-Based Crowdfunding:
As mentioned above, it involves individuals contributing to your venture in exchange for a gift (rewards) typically a form of product or service your company offers. Even though it offers giveaways, it is still generally considered a subset of donation-based crowdfunding since there is no financial or equity return. This type of crowdfunding allows business owners to incentivize their contributors without incurring additional expenses or selling their stake.
Equity-Based Crowdfunding:
This type of crowdfunding allows contributors to become part-owners of your company by trading capital for equity shares. Unlike donation-based or reward-based, the contributors received a financial return on their investment as well as receive a share of the profit in the form of a dividend or distribution.
Blockchain Crowdfunding:
The evolution of cryptocurrencies has given rise to a new crowdfunding type called Blockchain crowdfunding. This type leverages the power of cryptocurrencies such as Bitcoin to generate cash from the creation of new tokens in a process called Initial Coin Offerings. Here crypto investors depend on the potential returns of their appeal.
Now You Can Also Be Part of Our Project:
Intentionally, we at CoinRiot- (an event-focused marketing agency with deep crypto knowledge and the initiator of Bitcoin Cash projects) are organizing our next biggest hackathon event called “Hacksmart”- aimed at introducing talented blockchain developers to the power of Smart Bitcoin Cash (SmartBCH) which will take place in May 2022. The event will provide a special forum for attendees to connect with peers and hang out in a fun in-person as well as remote environment while building on our project.
Our donation based event needs more donors like you to help achieve our goal, we’d greatly appreciate your help. With our upcoming HackSmart event in May 2022 in London; we'll be glad if you can help us to complete these five simple tasks to enable us to have a successful and enriching event in the blockchain industry.
Make A Donation:
Our opportunity event aims at introducing the power of SmartBCH to talented developers. Your support can go a long way to help us realize this project. Please visit our website to pledge. We will be glad for any contribution you can make
Attend The Event:
We invite all our donors to be a part of the grand event, we will be glad to share a VIP pass with you. The event will take place towards the end of May 2022 and will be the best place for any developer to kick start their SmartBCH development career. Please we will extend our invitation to you via email.
Join our Meetup community:
Join our Meetup community where we host exciting in-person events aimed at providing fascinating talks by and for blockchain professionals, so you can gain key insights from the people leading the cryptocurrency revolution.
Follow us on social media:
Our social media handles are active and engaging. There, you can get first-hand information and updates concerning our campaign and upcoming event. Please JOIN US Now!
