Crowdfunding has proved its viability as a business model. It is used both by entrepreneurs for confirmation of their business value and by the investors providing the entrepreneurs with opportunity to create something new. But both groups face certain problems that are discovered by Arizn project team from the South Africa. Over 7 years of work, the team has helped more than a thousand social projects. Now it's time to make the next step and boost crowdfunding efficiency on a global scale using the blockchain technology. Let's consider ICO of this project.
Problem
According to statistics, only 1% of projects manage to successfully raise funds through crowdfunding. Newcomers have low chances to succeed. If the project has nothing except the idea, no platform will help it. This is the statistics and there are objective reasons for it. Let's examine the problems of both parties - founders and investors.
The founders face the following problems:
Some platforms require fee to publish new projects. The expenses are increased with various taxes and transaction fees. These fees sometimes reach 20% of the amount raised. That is, if the founders attract a million dollars for their project, they will receive only 800 000;
Since there are plenty of sites, the audience is divided between them. As a result, the audience is not enough to provide a sufficient coverage of the project fees. The project founders will have to attract the main audience to their page independently, using own resources. Only TOP platfroms may be the exception. These are the platforms, like Kickstarter, IndieGoGo, and some other sites;
As a rule, the platform set minimum requirements to the published projects. This leads to poor quality. Those who have burnt their fingers with a couple of unsuccessful projects will hardly invest into new ones;
This process is contains much procrastination and requires much time for waiting;
There are no motivational tools to promote and share information outside of the platforms. This could significantly enhance the business efficiency. Sometimes such attempts are made, but they all come to nothing due to technical difficulties related to accounting.
Investors also experience certain problems:
And each platform has unique features and requirements. It's impossible to sort out all of them. And the users get bored with only one platform quickly;
Now the entire interaction between the founders and the investors relies on trust and the platform does not guarantee return of the invested funds. This naturally constrains the motivation of bakers;
Only a few projects bring the expected yields. But if the project becomes liquid, it does not affect the wallets of the early stage investors. It would be fair to reward them for their trust in the project at the very beginning.
Solution
Arizn is a blockchain-based platform for crowdfunding. It protects the interests of both parties with smart-contracts.
Arizn has all the necessary tools to conclude formal contracts between the founders and the investors and provide them with liquid assets in the form of AALT tokens. When filling out the profile and project conditions, the smart-contract and the kind of ALTproject tokens are created. They serve as a tool of trust between the parties.
Investors receive their reward with AALT tokens of the project. Then they have to convert them to ALT tokens which serve as the system tokens. Thereupon they can withdraw the tokens to fiat money, invest them to other projects, or arrange own crowdfunding campaign.
Arizn has LiquiDEX exchange service, using which the users can exchange ALT tokens of the project with each other. The users can also convert them to AALT tokens and withdraw from the system, for example, to fiat currencies.
Integration of Arizn with Bancor protocol, providing liquidity for the tokens has been announced recently. This will allow anyone having AALT tokens of any project to use them on any platform of Bancor network. Tokens can be stored in Bancor Wallet or any other wallet of Web3, for example, MetaMask.
Project team
Arizn is a united team offering crowdfunding services in the countries of South Africa since 2011. Over this period, the team has grown into one of the most prominent crowdfunding platforms of Africa and is now planning to enter the global market of crowdfunding using the blockchain technology.
Conclusions
Arizn has a well-coordinated team, topical idea, and a bright role of blockchain technology. Soft Cap has been already raised. The current discount for tokens makes 30%.
Website: https://www.arizn.network/
Whitepaper: https://arizn.network/Whitepaper-version-1.2.pdf
Twitter: https://twitter.com/Arizn3
Facebook: https://www.facebook.com/ariznnetwork
Youtube: https://www.youtube.com/channel/UClLriZETajkLeALZkCGqwiQ
Telegram Group: https://t.me/ariznnetwork
Instagram: https://www.instagram.com/ariznproject
Bounty ANN https://bitcointalk.org/index.php?topic=4637613
Bitcointalk username: alexberezov
Bitcointalk profile link: https://bitcointalk.org/index.php?action=profile;u=1066970