Cryptocurrency crowdfunding works in a similar way to traditional crowdfunding, but benefits both the recipient and the donor. This is because cryptocurrency is generally treated as property, which means taxpayers can qualify a cryptocurrency donation as a tax-deductible charitable contribution.
Similarly, crypto crowdfunding allows entrepreneurs and organizations to tap into a larger pool of national and international donors who prefer to donate via blockchain.
As more businesses, startups, and individuals look to blockchain solutions to secure funding, let’s take a look at the seven leading crypto 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 the features that Gitcoin possesses include fundraising, developer tipping, hackathons, project search features, and GitHub integrations.
For investors, Gitcoin’s suite of open source projects means there are a wide range of options to contribute. Gitcoin’s quarterly grant rounds also allow for direct investment in specific projects.
Founded in 2017, QuantmRE is a crowdfunding platform that specializes in real estate. By allowing investors to build their own portfolio of micro-investing crypto-based assets in exchange for ownership capital, it is possible to combine cryptocurrency with the somewhat more stable real estate markets.
Additionally, owners can be set up to receive investment and gain additional value in their property by allowing cryptocurrency holders to invest in it. This is a nifty way real estate owners can invest in cryptocurrency without buying it.
The crowdfunding capital process is also easy on the platform. Users simply need to register to see if they qualify, apply and receive the funds.
RealBlocks was founded in the US in 2015 by Perrin Quarshie. Attracting interest from investment groups like Morgan Creek, Zelkova Ventures, and Crosslink Capital, RealBlocks has become a leading decentralized crowdfunding platform.
RealBlocks is based on a decentralized model featuring blockchain technology, allowing institutional and retail investors to invest in real estate.
The process that powers RealBlocks involves physical asset tokenization, which breaks down tangible assets into parts that can be purchased piece by piece, with the potential for multiple investors to participate.
RealBlocks is famous for its simplicity for users. Through the platform’s streamlined distribution channel, RealBlocks can raise more money through intermediaries and institutional channels.
RealBlocks currently serves more than 100 countries and has $77 billion under management.
Tallycoin is a simple crypto crowdfunding platform that offers easy and free donations to users without the need to formally register an account. Funding can be completely anonymous and non-freezable so that investments go directly to the right cause. All donations go directly to a crypto wallet under the control of the user.
The best thing about Tallycoin is that it is completely easy to use and bills its setup process to be similar to a simple website builder. Users simply list 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 keep them protected. These are the most secure wallets you can use to keep your cryptocurrency safe.
Created by the company that brought us Red Kite Launchpad, GameFi is one of the largest game initial offering development platforms in the crypto landscape.
GameFi is a comprehensive space that can help generate funding for Web3 games in various ways. Investors can not only buy tokens in an IGO project, but they can also buy in-game assets for the projects that inspire them the most.
The platform allows crowdfunding investments for games in various ways. Users can also gain access to pools through tokenized or ticketing systems.
Founded in 2017 by Cornell Holloway, CoinStarter is one of the largest cryptocurrency-based crowdfunding platforms. Their community-driven structure is a great way for donors to feel more intrinsically connected to the projects they believe in.
Although membership is required to start investing, it allows causes to build their own subscription models to earn revenue. This means that a monthly fee is paid to access the vast community of the platform, while donations are also subject to transaction fees.
The best thing about this platform is that it is simplified so that even non-crypto native users can create their own crowdfunding campaigns. The website is flexible and features Discord-style rooms that can help projects better identify target audiences and understand their needs.
Tecra Space takes a more traditional approach to crowdfunding. The decentralized space allows for the listing of various projects derived from patents, digital assets, and other intellectual property rights while unbundling and tokenizing.
The website makes it easy for developers to list their projects and offers varied terms for tokens and their buybacks. Projects may also be listed with different buy-in levels and investor benefits, such as access to a digital product or service, mentions 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 pretty easy to start fundraising. You will need to open a premium account, create your token and plan a campaign. Once you are done with the preparations, you can start fundraising.
Reading for investment Web3
Although 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 grow.
Web3 promises to provide a completely open source landscape that allows investors to put their crypto into the projects that inspire them. By doing this, we could see more efforts emerge through the power of the people. Through these platforms, we are able to see many more exciting projects that traditional forms of funding may have otherwise limited.