The last evolutionary step within ICOs platforms
A lot of people may have already ideas they want to develop but they need help and funds to bring them to life.
So far, different solutions to solve this problem may be: starting a classical crowdfunding, an IPO or an ICO. Let’s see quickly how do they change in their modalities to raise funds, together with their pros and cons.
Crowdfundings: Rewards-based; Donation-based; Equity; Debt.
“In rewards-based crowdfunding, backers give a small amount of money in exchange for a reward.
In donation-based crowdfunding, donors donate a small amount of money in exchange for gratitude and the feeling of supporting a cause they believe in.
In equity crowdfunding, investors invest large amounts of money in a company in exchange for a small piece of equity in the company.
And in debt crowdfunding, lenders make a loan with the expectation to make back their principal plus interest.”
(http://crowdfundinghacks.com/different-types-of-crowdfunding/)
However, launching a crowdfunding campaign requires a resident to be present in one of the countries of official work, and there is also a lot of paperwork to fill out. Countries like U.S. set up a thick regulation around crowdfunding, a system put in place by Securities Exchange Commission (SEC) exercising its authority under the JOBS Act (https://www.forbes.com/sites/deborahljacobs/2013/04/17/the-trouble-with-crowdfunding/#212361c418bf)
There are many limitations beyond every new IPO as well.
Initial public offering (ICO), starts when a company ends up being private, starting to sell its stocks to the public. Public companies have thousends of stakeholders. Within the most important IPOs: Alibaba, Visa, General Motors. Among the many problems presented by an IPO:
They charge high comsouvemissions (15–20%), as do the payment systems people must use to contribute with.
Company becomes required to disclose financial, accounting, tax, and other business information every quarter.
Significant legal, accounting and marketing costs, many of which are ongoing.
Increased time, effort and attention required of management for reporting.
Risk that required funding will not be raised if the market does not accept the IPO price, sending the stock price lower right after the offering (IPO Basics: What Is An IPO? https://www.investopedia.com/university/ipo/ipo.asp#ixzz56jfGCrSA)
They are overwhelmed with “failed” projects that let down the backers and the platform itself.
The larger crowdfunding platforms became all about big companies with strong marketing, rather than about creators with bright ideas, but no marketing budget. And so on.
As a result, many creators have no access to large crowdfunding platforms, limiting their fundraising opportunities, and narrowing the reach and diversity of the platforms.
The recent diffusion of cryptocurrencies may change this situation, making fundraising easy and potentially accessible everyone. ICOs with their decentralization, crypto-currency, and smart contracts are the new solutions for a project to raise funds. Obviously according any applicable laws, regulatory requirements, or rules in your residence country.
So Smart Contracts can solve all of these problems but, to deploy a Smart Contract, it requires a lot of technical competencies or to pay (lot of Bitcoins) in advance to a company to do it for you.
FriendsFingers represents a further step within this fundraising revolution, providing everyone with the possibility to crowdfund an idea, deploying a Smart Contract without any technical skill or paying a company who develops it for you.
FriendsFingers helps you to start a crowdfunding that would be ideal for investors: you set up a goal and a deadline for reaching it. If you miss your goal, the donations are returned, reducing the risk for donors. Since the code is open and auditable, there is no need for a centralized, trusted platform. Therefore, the only fees paid will be the Gas fees.
You don’t need to have any technical skill or to pay nothing in advance.
By using Ethereum, you can create a contract that will hold a contributor’s money until any given date or goal is reached. Depending on the outcome, the funds will either be released to the project owners or safely returned back to the contributors. That is all possible without requiring a centralized arbitrator, clearing house or having to trust anyone.
You can even use the token you created earlier to keep track of the distribution of rewards.
Rewards in crowdfundings are usually handled by a central unchangeable database that keeps track of all donors: anyone who missed the deadline for the campaign cannot get in anymore. Instead we are going to do this the decentralized way and just create a token to keep track of rewards, anyone who contributes gets a token that they can trade, sell or keep for later.
Donors get to keep their tokens, even if the project doesn’t achieve its goals, as a souvenir.
The crowdsales started on FriendsFingers and the corresponding tokens creation processes will be organized around Smart Contracts running on Ethereum Network. All the source code of both Smart Contracts and platform will be verified on Etherscan and published on GitHub, where you can read and analyze any line of the code you will use. Our platform itself will be a DApp (Decentralized Application) hosted on GitHub pages. We have no servers and no databases, we don’t store any datas in places you can’t see them. All will be public on the Blockchain and open-sourced on GitHub to have a strong and trustworthy crowdsale.
Furthermore, Shaka (HAK), our token, will give holders rights to be active part on platform key decisions like in a Decentralized Autonomous Organization (DAO).
If you trust us, your investors will trust you the same way. We want to give you the better solution to make your crowdfund trustworthy and disruptive.
Discover more on our website
www.friendsfingers.com
Read our Whitepaper
www.friendsfingers.com/whitepaper
Join our community