Cryptocurrency crowdfunding works similarly to traditional crowdfunding, but benefits both recipients and donors. This is because cryptocurrencies are generally treated as assets. This means taxpayers can qualify cryptocurrency donations as tax deductible charitable donations.
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 seek blockchain solutions to secure their funds, let’s take a look at the seven major cryptocurrency crowdfunding platforms available today.
Kevin Owocki founded Gitcoin in the US in 2017. Since then, Gitcoin has evolved into one of the cryptocurrency ecosystem’s most comprehensive solutions for open source software development.
The platform will serve as an on-demand space for developers to secure multiple forms of funding for their projects, including virtual crowdfunding.
Gitcoin features include fundraising, tipping developers, hackathons, project search functionality, and GitHub integration.
Additionally, the open source space allows developers to work on languages like Python, Rust, JavaScript, Ruby, HTML, CSS, Solidity, Design and more. Gitcoin claims to have helped thousands of projects and teams grow the open source ecosystem.
For investors, Gitcoin’s suite of open source projects means there are a huge number of options for contributing. Quarterly Gitcoin Grants rounds also allow direct investment in specific projects.
Founded in 2017, QuantmRE is a crowdfunding platform focused on real estate. By allowing investors to build their own asset portfolios based on micro-investments in cryptocurrencies in exchange for asset equity, it will be possible to combine cryptocurrencies with a more stable real estate market.
Additionally, asset owners can receive investments and gain additional value in their assets by allowing cryptocurrency holders to invest in their assets. This is one of the ingenious ways property owners can invest in cryptocurrencies without having to buy them.
The crowdfunding equity process is also easy on the platform. Users simply register to see if they are eligible and if they can apply and receive funds.
RealBlocks was founded in the US in 2015 by Perrin Quarshie. With interest from investment groups such as Morgan Creek, Zelkova Ventures and Crosslink Capital, RealBlocks has emerged as a leading decentralized crowdfunding platform.
RealBlocks is built on a decentralized model featuring blockchain technology, allowing both institutional and individual investors to invest in real estate.
The process of powering RealBlocks involves tokenizing physical assets. This can involve multiple investors as tangible goods can be purchased in parts.
RealBlocks are famous for their simplicity. Through the platform’s simplified distribution channels, RealBlocks will be able to raise more funds through intermediary and institutional channels.
Today, RealBlocks serves over 100 countries and manages $77 billion.
Tallycoin is a simple cryptocurrency crowdfunding platform that offers users easy and fee-free donations without the need to formally register an account. Funds are completely anonymous and cannot be frozen, so investments go directly to the causes listed. All donations go directly to a crypto wallet under the control of the user.
The beauty of Tallycoin is that it is completely user friendly and the setup process resembles a simple website builder. Users simply list their purpose, add wallet information and wait for a secure donation to be made.
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 cryptocurrencies safe.
Created by the company that brought you the Red Kite Launchpad, GameFi is one of the largest early game offering development platforms in the cryptocurrency industry.
GameFi is an inclusive space where you can help fund your Web3 games in a variety of ways. Investors can not only buy tokens in her IGO projects, but also in-game assets of the most inspired projects.
The platform enables crowdfunding investments in games in a number of ways. Users can also access pools through ticketing or tokenized systems.
Founded by Cornell Holloway in 2017, CoinStarter is one of the largest cryptocurrency-based crowdfunding platforms. Its community-driven structure is a great way for donors to feel intrinsically connected to the projects they believe in.
A membership is required to start investing, but this allows Cause to create its own subscription model for revenue. This means that a monthly fee is paid to access the platform’s vast community, but there is also a transaction fee for donations.
The beauty of this platform is that it has been simplified to allow non-cryptocurrency users to create their own crowdfunding campaigns. The website is flexible and features Discord-style rooms that help projects better identify their target audience and understand their needs.
Tecra Space takes a more traditional approach to crowdfunding. The decentralized space allows us to create a list of different projects derived from patents, digital assets, and other intellectual property rights, while deconstructing and tokenizing them.
The website allows developers to easily list their projects and offer different timeframes for tokens and their buybacks. You can also list projects with different buy-in levels and perks for investors, such as access to digital products and services, mentions and credits, and thematic artwork.
Projects listed on Tecra Space include video games, decentralized apps, mining operations, renewable energy services, and more.
Getting started with fundraising is fairly easy. You need to open a premium account, create tokens and plan your campaign. Once you’re ready, you can start fundraising.
Reading for Web3 Investing
Cryptocurrency crowdfunding is still a developing industry, but as the next generation of the internet continues to grow, the future certainly looks bright for community-funded projects.
Web3 promises to bring a fully open source landscape that allows investors to put their cryptocurrencies into projects that inspire them. In doing so, we could see more attempts coming through people power. Through these platforms, we can see many more exciting projects coming to life that may have been restricted in traditional forms of finance.
