Fixing the Gig Economy with Crowdfunding 2.0
If interested in small businesses or startups, you have surely heard the term initial coin offerings or ICOs. TechCrunch opines that the funds raised by ICOs were about $800 million by Quarter 2 of 2017. It ironically also reported that the US Securities and Exchange Commission (SEC) charged 2 ICOs for committing fraud with investors, the same month. The SEC website has an ICO advisory which aims to educate potential investors with it basically saying that if they invest with an ICO, then in case of any theft or fraud, they may get a limited recovered amount, even if the have rights as mentioned under securities law, but their ability would be substantially limited.
Fraud is a momentous problem with regards to ICOs. Wired called these ICOs a $3.8 billion bubble. A lack of major safeguards led to burgeoning of token sales in ICOs that can be viewed as a threat to investors and undermine existing Blockchain technology, sincere startups which wish to fundraise as also the balance of the world economy. Can ICOs be changed to safeguard the industry and the people who invest in it? Tokenza is that company which is keen on building a decentralized freelancing and crowdfunding network to change the operating systems.
Beyond fundraising for ICOs
At the outset, the chief purpose of ICOs is fundraising, but money alone rarely makes good projects, rather the people do. Without the able people to carry out the vision of the project, all are castles, imagined in the air. Tokenza is trying to not only build a dispersed crowdfunding network, they also talk about offering a freelancing base to facilitate startup projects and find the apt people to perform these big plans. The decentralized network of Tokenza, referred to as ‘the network’ is founded on Blockchain technology, underpinned by their tokens called TKZ. Various project backers utilize the tokens for funding and by the project owners to make their submissions. Freelancers can also earn more TKZ by providing skills and time on the network.
With a little bit of Trust
The Tokenza Network seeks to move away from the current status of the ICO landscape, by creating a proper system ensuring transparency and stability The Tokenza network is structured on Ethereum Blockchain permitting smart indentures to be built. Tokenza Network’s smart contracts and other advances would be open source. Network transactions are publicly verifiable, secure and auditable. Freelancers in the booming so-called ‘gig’ economy can use the stable system and just a single token in order to get payments from various startup projects. The autocracy of being paid in tokens of questionable value need not be endured. This enables handling of just one wallet instead of several wallets and ends the struggle that comes with it.
On this Tokenza Network, fundraising will be different as their whitepaper clearly outlines the technical and all-inclusive vision for this. The system constituents include project curators, owners, freelancers and backers. To nurture trust, network users must be acquiescent with international AML and KYC specifications and will be required to give necessary documentation to secure complete access. Unverified users have restricted ability to work as freelancers or conduct transactions within certain limits. Curators are compulsorily verified.
On Tokenza, each member has an in-house score and ICOs are held in small multiple rounds of fundraising. Valuations are more genuine and allied to the stage of expansion of projects. The platform is structured so as to exert a significant social pressure to deliver results for a project and comply with all rules.
The CEO of Tokenza says that they envision the future with a very strong presence of Tokenza, and that nobody would be able make investments into a Blockchain or ICO without them. They envision a on-stop-shop for all fundraising and freelancing on Blockchain, a place where entrepreneurs are incentivized to follow the rules and all key parties have the utmost confidence in everyone they work with.
Future of ICOs: Tokenza?
ICOs are broken today, but they can be revived and changed. Crowdsourcing needs desperately, the magic touch of verifiability and decentralization to make it steadfast. This can fix the fragmented ICOs and allows formal and old economy participants like financial institutions and banks, to show concern in crowd sales. Investors can now head to the Tokenza website to crowd sale to fund this initiative by registering themselves. The project, as per Cointelegraph, received more than $200,000 in seed funding within mere hours from individial investors and the enterprise is being incorporated, with a legal framework being formed. Tokenza is the remedy to prevent any ICO fundraising bubble burst.
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