Although many tokens have collapsed during the ongoing altcoin apocalypse, the future remains bright for applications with real world usage. Because of the ongoing bear market and limited trading opportunities, analyzing businesses with the potential to experience real world adoption should be the priority. Part of that analysis should include looking at industries that need improvement. During my analysis, one area that quickly popped up is the field of traditional crowdfunding and money circles. And, as it turns out, AZ FundChain application offers a compelling alternative.
Problems with Traditional Crowdfunding
President Obama’s JOBS Act essentially laid the ground work for crowdfunding. This legislation was passed in 2012 and included a provision for large groups of anonymous investors to fund startups. It essentially gets around the dreaded “qualified investor” requirement that created a barrier for so many potential participants. Crowdfunding is a great way for non-traditional businesses to raise funds for operating capital. It certainly beats having to beg a bank for a loan, or, even worse, a loan shark.
But, as the common cliché goes, no good deed goes unpunished. Traditional crowdfunding and money circles certainly have their fair share of problems. The biggest problem is trust. There are essentially very little checks and balances when it comes to how these companies will use the money that is raised. Companies can promise the world but may not deliver on them, and many don’t.
There is also a bit of an information disconnect. The “crowd” does very little research into these businesses that use crowdfunding. They may read an online pitch or video, and perhaps do some general industry research, but not much more. On the flip side, look at venture capitalists and how much time they spend doing this exact same thing but on a much larger scale. And VC’s lose on most of their investments. So, will the public do better? Unlikely.
AZ FundChain Application Offers a Compelling Solution
FundChain is a decentralized, transparent and reliable money circle and crowdfunding application running on the blockchain. The application, with its native currency (AZ), offers many benefits as compared to the traditional model of crowdfunding. Those benefits include the following:
- Accessibility and Intuitive User Interface – The application is available on both iOS and Android which makes it available to nearly everyone.
- Social Aspect, User Profiles, and Credibility – FundChain’s goal is to eliminate the asymmetric information and financial losses that occur because of negligence. With FundChain, in order to participate, participants will assess each other with regard to their reputation scores. These scores can be seen by all which improves credibility.
- Deposits/Withdrawals – Participants can deposit and withdraw via ETH, USDC, or ERC20 tokens. This is especially important as it offers an opportunity to reach unbanked communities.
- Transparency – Because FundChain is built on blockchain technology, the application is fully transparent. Funds can be traced and reputation scores are shown. In addition, smart contracts work in a sort of manager role.
FundChain excels at understanding the problems associated with traditional crowdfunding and developing solutions to deal with those problems. The above benefits are just a few of the many offered by FundChain.
AZ Token Sale
AZ Token will serve as the fuel behind the FundChain platform. The token will have continuous demand as it will be bought back from the open market through transaction fees. The company started the public sale of tokens on March 1 and the ICO is expected to last 30 days. The minimum required investment is $10 and each AZ Token is worth roughly $0.63 USD.
Summary
There is no doubt that crowdfunding is the way of the future. But given all the problems associated with it, the industry is in need of serious change. AZ FundChain is a promising application that offers a great start toward disrupting the industry and helping to better align incentives and risks for both businesses and funders.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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