A dream within a dream, as anyone who has seen the movie Inception will be familiar with.
DropDeck have come up with a better way of crowdfunding and they’re getting started themselves by, you guessed it: crowdfunding.
Very few industries and companies are able to put their money where their mouth is, in a public and open manner.
Much like an advertising agency is showing what they’re made of when advertising their own services, DropDeck are showing their belief in the concept of token based crowdfunding, by doing it themselves.
Not only are they using themselves as a live example, they’re showing that they have been “on the ground” when discovering that there must be a better way, than what’s currently available to us.
Most groundbreaking new companies that have come to public prominence in the last decade have not been reinventing the wheel. Uber did not re-invent transport, they simply decentralised how the public accesses it and allowed for unbiased reviews. AirBnB did the same for accommodation and DropDeck are taking a similar approach with crowdfunding.
The genius that is Kickstarter can not be denied. They invented the wheel of crowdfunding, but it’s time that the wooden wheel had some rubber put on it and was attached to some suspension. Enter DropDeck.
The rise in the popularity of crowdfunding has seen an increase in unscrupulous activity and misrepresentation. Dollars are being thrown at whichever companies have the best video production and little thought is being put into business plans and financial returns.
None of this is surprising however, as the companies who are seeking the funding, are also the ones claiming it’s a great investment.
DropDeck have seen the need for external ratings, accountability and verification and they have rightly seen fit to achieve this with smart contracts.
It seems almost impossible to escape the term blockchain in the news currently and it’s with good reason. This technology is changing the way that the world does business and the pioneering early adopters will see great benefit by catching the first wave.
So what does this mean for crowdfunding, and how does DropDeck fit into the picture.
5 Reasons Why DropDeck Should Become the Dominant Crowdfunding Platform
1. Ethereum based smart contracts. Ethereum took the world by storm, not because of its associated cryptocurrency Ether, but instead because of the clever design of the blockchain. Ethereum allows for many things that its predecessor blockchains did not, with the most significant being its ability for smart contracts.
The concept is simple. Contracts are typically a set of conditions outlining rights and obligations of both parties and determines outcomes when certain obligations or milestones are met. With a standard contract, both parties have to continually monitor the progress and activity of the other, generally with the need for expensive legal oversight to be involved.
With a smart contract, the software itself determines when certain obligations are met and provides an argument free, cost effective solution that’s automated as the process continues.
This is the system and one of the underlying principles that DropDeck is built on, indicating that their overall design is rather more intelligent and fair than existing systems such as KickStarter.
2. Cross border ease. Fiat currencies generally mean expensive transactions and a lack of recognition in other countries.
So many exceptional startups and investments can be seen crowd funding. Few things are more painful than seeing the perfect investment and not being allowed to participate because you’re in the wrong country. From the other side, it’s just as painful for a company to be geographically limited in where they can raise money.
Of course there are other limiting factors and regulations that can occasionally prevent cross-border capital raising, but expensive currency conversions are on of the biggest hurdles that are stifling free industry.
DropDeck’s use of token’s is a huge step forward in bringing international investment to the average person. It also brings about the potential for distributed, international ownership of small companies that would generally not be able to achieve this.
3. Real due diligence. DropDeck have taken a real, sensible business approach to what has been a general popularity contest.
Companies like Indiegogo and KickStarter have been revolutionary in how they have brought crowdfunding to the masses, but the concept has mutated from a common-sense business idea, to a contest of which companies get the most facebook likes.
A re-invention of the industry is overdue, but requires real conceptual change and not just a few little adjustments.
Possibly the most underrated piece of the DropDeck puzzle, is their introduction of “delegates”, who are local people on the ground verifying the legitimacy of a company and their claims. It’s like having your own man on the ground, researching your investment opportunities. Suddenly the masses have access to what was previously only achievable for millionaires.
4. It’s actually genuine investment. When you take a closer look at platforms such as KickStarter, it doesn’t take long to realise that it’s got nothing to do with investments.
It’s simply just a program that allows non-operational companies to make pre-sales and by being an early “investor”, the reward is to get one of their products earlier than the rest of the public.
The key differentiation between companies like this and DropDeck is it’s genuine investment nature. Depending on how their capital raising campaign is structured, it can be similar to buying into a syndicate, where you can get a full pay-out after a designated period such as 5 years.
Once again, we can see opportunities that were previously only available to the ultra rich, being offered to the public.
Many people have been claiming that blockchain and cryptocurrencies will level the playing field and reduce the wealth gap between the top 1% and the rest of us. Could it be that companies such as DropDeck will play a part in this?
Some might claim that DropDeck is just one more blockchain based company that’s emerged during the period of Bitcoin’s unprecedented popularity and public awareness of this technology.
They could be right, but what seems to be the case is that the founders of this company have got their timing perfect and that they’re releasing an ideal service, just as the public is ready to accept it.
Disclaimer: Statements in this article do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.