Why FairEco ?
We have purposely built FairEco, the Crowdfunding platform based on Blockchain technology, to create fair and trust platform for the community, enable Makers to have their dream practically with project management platform and allow Backers to join that dream with investment assurance.
From our study, we found that many projects in crowdfunding projects are fraudulent intentionally, fail to deliver as no control over project execution or Makers have full control over the project and no protection for the money that goes in one shot, no chance for Backers to protect their investment. Let us share what we discovered during our study.
Firstly, we noted that, as Makers, there is no or less control over project execution.
Fundraising via Crowdfunding is a way to raise the fund from Backers who are interested and confident in good projects, in project that aim to solve and effect the society in positive way or impress with commitment of the Makers. In return, Backers would receive good products or services, along with Backers would get the chance to be the first group to use the products or services, which quite often these first group of users create acknowledgement to wide range of society. Crowdfunding statistic of year 2012–2015 [1] found that number of projects were increasing in every year. From statistic on 8 June 2018 [2] found that there are over $3,720,870,063 pledged to fundraising via Kickstarter platform and there are over 145,091 projects successfully funded.
As we look into various Crowdfunding projects, we found that many of the Makers terminate or unable to deliver project as promised. In addition to this, there are many people who use Crowdfunding to raise the fund with no intention to complete or deliver the projects, which is effect to Backers who lost, both, money and time in waiting for products and services from Makers. For example, in 2014, Artechnica [3] reported the project that did not deliver and terminate the project, as well as Reddit [4] confirmed that many well known projects, success in fundraising but terminate the project without notice. Hence, there is NO control over project execution once project started.
From the study of University of Pennsylvania found that over 35% of all Backers participated in the successful fund raised projects, are not satisfy with the projects that cannot deliver products or services as state, unable to follow the strategy or terminate the projects unexpected. This unsatisfied number of Backers is significantly increased years by years. 9% of all Kickstarter’s projects, who successfully raise the fund terminate the project or unable to deliver as planned. 8% of Backers of all projects did not receive anything in return, as well as the delay of the actual work comparing to the plan. From the same study explained in more details.
Secondly, it is all or nothing for Backers
With Crowdfunding fundraising, ฺBackers are able to participate in any projects they like or believe in and decide to support Makers freely. Fund will be raised through the platform designed to facilitate both Backers and Makers to transfer fund from Backers to Makers. Makers are responsible to provide attractive project proposal including the innovative solution, sound execution plan, the deliverable items, tangible products or services, team or group of people working for the projects, and also creditable investor or shareholders in order to ensure that they can deliver according to the plan.
However, the platform never assure whether Backers will receive products or services. Simply put this way, if Backers have invested in any projects, all their fund after platform fee applied would be transferred to Makers and it is solely the right of Makers to manage fund return to Backers in case they decide to terminate the projects or unable to continue the execution according to the plan. For example, fundraising for innovative iPad [5] was decided to terminate the project and it appeared that there is no money return to Backers.
In other words, even Backers have freedom in choosing which project to participate and invest, they are also responsible for their own risk in not getting products and services, as well as loss of investment money.
Joining Block Hedge Asia
We have been invited by Block Hedge Asia 3rd Edition held during this 31 of August 2018 in Bangkok, Thailand. This event bring together Architecture, Developer, Engineer and Designer and in Blockchain community to have a discuss about Future of its implementation and use cases. For who want to join this event, please head to https://www.block-hedge.com/thailand/
Getting Partnership
We are busying with many people in the community in discussing about our idea, about how Blockchain can facilitate or shape any business model. We will announce our partnership shortly.
Please join our telegram or twitter channel to receive our updates and stay in touch with us:
Telegram : https://t.me/faireco_io
Twitter :https://twitter.com/@faireco_io
Web: https://faireco.io
Stay tune and we will keep you posted.
Thanks and Have a good day,
FairEco Team
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References
[1] Total crowdfunding volume worldwide from 2012 to 2015 (in billion U.S. dollars)
https://www.statista.com/statistics/620952/total-crowdfunding-volume-worldwide/
[2] Kickstarter’s Stat
https://www.kickstarter.com/help/stats?ref=global-footer
[3] The ugly afterlife of crowdfunding projects that never ship and never end
https://arstechnica.com/information-technology/2014/10/the-ugly-afterlife-of-crowdfunding-projects-that-never-ship-and-never-end/
[4] Complete list of funded Kickstarter projects that have later been cancelled and never fulfilled
https://www.reddit.com/r/kickstarter/comments/1j6ubm/complete_list_of_funded_kickstarter_projects_that/
[5] Failed Kickstarter Project Bankrupts Seth Quest, Hanfree iPad Stand Inventor: Report
https://www.huffingtonpost.com/2013/01/15/failed-kickstarter-project-seth-quest-hanfree-ipad_n_2479798.html
