Cryptocurrency crowdfunding works the same way as traditional crowdfunding, but benefits both the recipient and the donor. This is because cryptocurrencies are generally treated as property, which means taxpayers can qualify a donation of cryptocurrencies as a tax-deductible charitable contribution.
Similarly, crypto crowdfunding allows entrepreneurs and organizations to take advantage of more national and international donors who prefer to donate via blockchain.
As more companies, startups, and individuals seek blockchain solutions to secure funding, let’s take a look at the top seven cryptocurrency crowdfunding platforms available in today’s landscape:
Kevin Owocki founded Gitcoin in the US in 2017. Since then it has become one of the cryptocurrency ecosystem’s most comprehensive solutions for open source software development.
The platform functions as an on-demand space for developers to secure multiple forms of funding for their projects, including crypto-crowdfunding.
Some of Gitcoin’s features include fundraising, developer tips, hackathons, project search features, and GitHub integrations.
For investors, Gitcoin’s suite of open source projects means there’s a wealth of options to contribute to. Quarterly rounds of Gitcoin grants also allow for direct investment in specific projects.
Founded in 2017, QuantmRE is a crowdfunding platform specializing in the real estate sector. By allowing investors to build their asset portfolio based on micro-investments in cryptocurrencies in exchange for real estate shares, it is possible to combine cryptocurrencies with somewhat more stable real estate markets.
Also, property owners can arrange to receive investments and gain additional value on their property by allowing cryptocurrency holders to invest in it. It’s an ingenious way for property owners to invest in cryptocurrencies without buying them.
The equity crowdfunding process is also simple on the platform. Users simply sign up to see if they qualify, apply and receive funds.
3. Real blocks
RealBlocks was founded in the United States in 2015 by Perrin Quarshie. Attracting the interest of investment groups such as Morgan Creek, Zelkova Ventures and Crosslink Capital, RealBlocks has established itself as a leading decentralized crowdfunding platform.
RealBlocks is built on a decentralized model using blockchain technology, enabling institutional investors and individuals to invest in real estate.
The process that powers RealBlocks involves the tokenization of physical assets, which breaks down tangible assets into items that can be purchased piece by piece, with the ability for multiple investors to get involved.
RealBlocks is renowned for its simplicity for users. Thanks to the platform’s streamlined distribution channel, RealBlocks can raise more money through intermediaries and institutional channels.
Currently, RealBlocks serves over 100 countries and has $77 billion in administration.
Tallycoin is a simple cryptocurrency crowdfunding platform that offers easy and free donations to users, without the need to formally register an account. The financing can be completely anonymous and non-discharge so that investments go directly to the indicated cause. All donations go directly to a cryptocurrency wallet under your control.
The advantage of Tallycoin is that it is completely intuitive and its installation process is similar to that of a simple website builder. Users simply state their cause, add their wallet information, and wait for the secure donations to arrive.
And once you have your crypto funds, it’s best to secure them. Here are the safest wallets you can use to protect your cryptocurrency.
5. Game Fi
Created by the company that brought us Red Kite Launchpad, GameFi is one of the largest early game development platforms in the cryptocurrency landscape.
GameFi is a comprehensive space that can help generate funding for Web3 games in a variety of ways. Not only can investors buy tokens in an OIG project, they can also buy in-game assets for projects that inspire them the most.
The platform enables crowdfunding investments for games in a variety of ways. Users can also get access to pools through ticketing systems or tokens.
Founded in 2017 by Cornell Holloway, CoinStarter is one of the largest cryptocurrency crowdfunding platforms. Its community-driven structure is a great way for donors to feel more intrinsically connected to projects they believe in.
While membership is required to start investing, it allows causes to generate their own membership models for revenue. This means that a monthly membership fee is paid to access the platform’s vast community, while donations are also subject to transaction fees.
What’s great about this platform is that it’s streamlined so that even non-native crypto users can create their own crowdfunding campaigns. The site is flexible and offers Discord-style rooms that can help projects better identify their target audience and understand their needs.
7. Tecra space
Tecra Space takes a more traditional approach to crowdfunding. The decentralized space helps listing various projects by patents, digital assets and other intellectual property rights, breaking them down and symbolizing them.
The site allows developers to easily list their projects and offers variable times for tokens and their redemptions. It is also possible to list projects with different levels of participation and benefits for investors, such as access to a digital product or service, sponsorships or credits or themed artwork, to name a few.
Projects listed on Tecra Space include video games, decentralized applications, mining operations, and renewable energy services, among others.
It’s quite simple to start fundraising. You need to open a premium account, create your token and plan a campaign. Once the preparations are complete, you can start fundraising.
Reading for investment Web3
While cryptocurrency crowdfunding is still a developing industry, the future certainly looks bright for community-funded projects as the next generation of the internet continues to develop.
Web3 promises to offer a fully open source landscape that allows investors to put their cryptocurrencies into projects that inspire them. In this way, we could see more companies emerge thanks to the power of people. Through these platforms, we can see many more exciting projects that traditional forms of financing could have limited.