Nxt on course to crowdfund 10 million NXT ($70-80,000) for 2016 marketing push
Thursday 22 October 2015
The Nxt community is set to raise 1% of the coin’s entire supply to fund new marketing efforts over the coming year.
I’ve been involved in Nxt for around 18 months now, and it’s a fantastic platform. It has incredible tech, some great people and - I hope - a bright future. Not too many cryptos can boast actual use-cases with real companies, but Nxt is gradually positioning itself to do just that, thanks to the relationships that have been cultivated for many months behind the scenes.
But Nxt has a problem, or two. It’s one of the most decentralised cryptos out there. It is the absolute antithesis of the kind of corporate approach that something like Ethereum or BitShares has taken, with a big marketing budget and the ability to drum up lots of hype. There’s no centralised leadership, just a bunch of people and little crypto businesses doing their own thing. It’s earned itself the title ‘the Linux of crypto’ as a result. Free to use, open source, but owned by everyone and no one.
The thing is, a little centralisation isn’t such a bad thing, even in crypto. Not in terms of the network, but in terms of organisation. Decentralised organisation is an oxymoron.
The other ‘problem’ is the market cap, which has sunk from a high over around $100 million around 15 months ago to just $7 million at the time of writing. Like all alts, Nxt has been bleeding. The bitcoin crash hasn’t helped, but there’s been a loss of confidence across the alts, too, and the losses are high. In Nxt’s case, a single large stakeholder has also been cashing out for reasons known only to himself, pushing the price down to 0.000025 BTC at one point. (He is nicknamed LSUM, after the last few characters of one of his NXT addresses, and he has become something of a mascot in the community.)
Trustless crowdfunding is a promising use-case for crypto
This is why two well-known and respected members of the Nxt community, Damelon and EvilDave - also known as Bas Wisselink and Dave Pearce - have set the bold target of raising 10 million NXT by Monday. The money will be used to fund them for a year as part-time representatives for Nxt, as well as hiring in PR services and developers, where necessary. 10 million NXT is 1% of the whole supply, equal to around $70-80,000 at present - though, if things go to plan, a lot more in the near future.
Nxt’s own Monetary System (MS) is being used for the crowdfunder. MS allows users to pledge funds, which are then locked until the deadline. If the required total is met, the funds are released to the initiator. If not, they are returned to the donors - all trustlessly. It’s a great use case in itself.
At the time of writing, the crowdfunder has raised an impressive 77.7% of funds needed, meaning it is on track to attract the full 10 million. There is also a BTC address for donations, which will be converted to NXT: 1K4cKgFEtbf6UbZDxs8Sx8MU1NSfkhCMsA.
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