How crowdfunding platforms can finally build transparency mechanisms
Deciding where to invest your money is not an easy task because the plethora of possibilities for profits in today’s technology-driven economy is mind-boggling. Among many investment options in the crypto sphere, online crowdfunding has emerged as a powerful tool to raise funds for emergency response.
The Real Danger
While crowdfunding has a reputation as both lucrative and high-risk, the real problem with this type of individual investment has always been with the transparency of the fund flow. How much money exactly is needed? Where is it being spent? What will happen if there is no return on investment? Serious issues with cyber-security do not help matters for investors.
The Answer
Traditionally, crowdfunding campaigns have two transparency tools at their disposal: updates and certification. Updates are additional messages that the organizer issues after launching the campaign and are a form of operational transparency when they communicate the campaign’s work to investors. Alternatively, certification is a form of conventional transparency that ensures the campaign truly benefits a charitable purpose.
Research has directed that, for any crowdfunding campaign to even compete in the cryptosphere, one condition is that the crowdfunding platform provides its people with sufficient financial information before, during and after the campaign. Details like how the currency will be used — and how the currency would be returned if the project failed — should be outlined clearly at the beginning of the investment and have obvious follow-through. As time progresses, the fund seeker should regularly update the investors to ensure fair use of funds and distribution of rewards.
Platform Promise
Yes, deciding where to invest your money is not easy, but we help by promising transparency and traceability. SeedOn’s crowdfunding platform makes it simple and efficient for everyone to follow their transactions.
With detailed token information displayed in a visually clear way right on our website’s main homepage, and other tools and communication channels at the tips of your fingers, you will have a clear overview of your project’s development.
Seven-Step Security
SeedOn offers you a revolutionary 7-step plan to increase the rate of success for conventional crowdfunding campaigns. We will put into practice this plan, which in turn will minimize investment risk and protect your assets with complete transparency and trust.
First of all, our strict screening process helps us conclude the authenticity of the entrepreneur, who is required to input a series of information in regard to the startup’s details. Once the crowdfund pledge has successfully completed, entrepreneurs will have access to the funds in stages, meaning that capital infusion will be made partially to startups. SeedOn will require entrepreneurs to organize monthly, quarterly, or biannually update meetings in which they will present to investors the progress of the company in the current stage. Our team will work in close collaboration with entrepreneurs to make sure that all required details for a project have been defined and that clear, identifiable and measurable objectives are set for the project.
With the help of blockchain technology, SeedOn investors will always know how the money is spent by entrepreneurs in accordance with the defined project’s objectives.
