Crowdfunding has become a popular way to raise funds for projects from a large number of people. There are platforms that facilitate the crowdfunding process for businesses. They provide tools like project creation, tracking, promotion, and prize distribution to assist projects get off on a good start.
Some of these platforms provide support for cryptocurrencies, where investors can contribute various kinds of cryptos in the early stages of a project. In this article, we will be looking at the top five crowdfunding platforms that accept cryptocurrency payments, analyzing their benefits and drawbacks.
What is Crowdfunding?
Crowdfunding is a popular process of receiving funds to support a project. Usually, these funds are from willing individuals or organizations who receive an agreed form of reward for their contribution.
Perhaps, an upcoming startup whose focus is on building cars that run on water instead of fuel requires funding to accomplish this goal. They spread the word and luckily attract a pool of backers willing to contribute their financial resources in return for a car, a certain percentage of their revenue, or any agreed form of compensation.
Crowdfunding also safeguards startup owners and their ideas in certain situations such as bankruptcy. Instead of giving all of their hard work, they can sell a chunk to the investors and continue their operation by downsizing.
What Is the Essence of Crypto Crowdfunding Platforms?
Having an idea is simple, but gathering backers ready to fund your ideas to completion can be difficult. Millions of unaccomplished startup ideas fail due to a lack of funding, hence the importance of crowdfunding platforms.
Crowdfunding platforms offer the technology that simplifies the process of crowdfunding for startup owners, allowing them to focus on developing their projects. These platforms, particularly crypto crowdfunding platforms, employ blockchain technology to ensure medium-sized enterprises receive cryptocurrency funding.
Crowdfunding Platforms That Accept Crypto Payments
Numerous crowdfunding platforms accept crypto payments, however only a few possess a track record of excellent service rendition. The following are the top 5 crowdfunding platforms that accept crypto payments:
PTPShopy
PTPShopy offers a user-friendly crypto crowdfunding platform for teams and creators looking to raise funds for their projects. It simplifies the crowdfunding process, doing the heavy work at the early stages and allowing the team to focus on important aspects of their projects. PTPShopy handles the creation of campaigns, promotions, tracking and distribution. It allows projects to receive funds in a variety of cryptocurrencies, making it easy to attract investors from across the globe.
PTPShopy’s crowdfunding solution is ready-made. Users can use it by importing the crowdfunding widget that can be promoted on their website or social media page. Once funding begins, PTPShopy offers a crypto wallet that holds all cryptocurrency funding and employs smart contracts, a self-executing code, to ensure that the funds are only released once the funding target is completed.
StartEngine
Founded by Howard Marks and Ron Miller in 2014, StartEngine is a Los Angeles-based equity crowdfunding platform that accepts both crypto and fiat project funds. The platform caters to individuals and organizations looking to invest in early startups and projects.
Interested companies are provided the opportunity to raise capital through Regulation Crowdfunding (Reg CF) and Regulation A+ (Reg A+) offerings which allows these startups to offer company shares to interested investors. BitPay supports StartEngine’s cryptocurrency payment option.
Drawbacks
StartEngine adheres to strict regulatory compliance when it comes to equity funding as both investors and startups looking for funding must adhere to all regulations before any offerings. Likewise, the strict regulations also limit the pool of investors, restricting funding to creators. Like many crowdfunding platforms, StartEngine fees are exorbitant and can impact the overall cost of crowdfunding.
Kickstarter
Kickstarter is another well-known crowdfunding platform for small creators, especially those in the creative field to receive funding for their music, films, and games. It was founded in 2009 by Perry Chen and allows upcoming creatives to raise funds by offering different kinds of rewards/returns on each investment level. Although Kickstarter does not receive cryptocurrencies for any of its services or products, it has partnered with Coinbase to allow creators to receive cryptocurrency funding.
Drawbacks
Kickstarter is widely popular among individuals looking for funding, hence competition is brutal as you may be competing for a limited amount of attention and funding. Also, all Kickstarter fundings are time-based so creators may be pressured to solicit for investors within this short period.
It’s no news that Kickstarter charges a mandatory 5% platform fee on every successful crowdfunding project. This fee does not also include the payment processing fees creators are required to pay before receiving their funds.
Indiegogo
Indiegogo is a prominent crowdfunding platform that empowers all kinds of individuals, entrepreneurs, and organizations to receive funding for all kinds of projects. Founded in 2008 by Danae Ringelmann, it has become a creative hub to receive funding through different methods including initial coin offerings (ICOs). Like StartEngine, Indiegogo’s cryptocurrency payment option is supported by BitPay. It has partnered with Coinbase to allow creators to receive funding in Bitcoin.
Drawback
Indiegogo offers user-centered features such as flexible funding, however, this comes at a huge cost for creators looking to enjoy better flexibility as they are charged 9% of funding. This is a huge contrast when compared to the 5% of fixed funding.
Patreon
Patreon is a popular crowdfunding platform for creators such as artists, YouTubers, writers, and other creatures to receive recurring funds from their fans or “patrons”. It was founded in 2013 and partnered with Bitpay to allow members to receive payment in Bitcoin.
Drawbacks
Patron is membership-based and charges its users to use the platform. It also changes fees on every amount donated by patrons, reducing the income they receive. For up-and-coming creators, Patreon can be somewhat difficult to receive funding because the platform has an already large population base and its algorithm favors certain creators.
Get funding for your Project with PTPShopy
Do you have an idea that requires funding, then PTPShopy is saddled with the right tools to actualize your dreams. All you need to do is to follow the procedures:
- Register/Sign up by providing the necessary details.
- Head over to the crowdfunding section on the PTPShopy website.
- Create a campaign by clicking on the “Crowdfunding” button.
- After filling in the necessary details, click on Create and give your project a name. We recommend you use the project goal as its name for better recognition. Also, define the project goals and specify the funding target it takes to complete the project. Then submit.
- A crowdfunding widget will be created after submitting. You can then install this on your website or add it to your social media, preferably the social media highlighting all the intricacy of your project.
- Promote your project, alongside the widget to reach a wider audience and access more funding.
- Once funding comes in, track your progress.
- Withdraw and keep to your promises.