Tokenly crowdfund $440,000 for crypto crowdfunding project

Tuesday 19 April 2016

Counterparty tokens platform Tokenly has passed its funding objective with a campaign to pivot to a new business approach.

Crowdfunding is growing. Although sites like Kickstarter and Indiegogo made it famous, it’s becoming the new way to raise funds for just about anything from a business proposal to group legal action - even a home loan. It’s a fantastic way of tapping into grassroots interest in a venture, raising cash and usually rewarding backers in some way. Whereas previously VC money or another form of private investment would have been the only option for most, the web enables backers to pledge just a few dollars each. Power to the people.

For all its advantages, traditional crowdfunding has some drawbacks, though. Investment through crowdfunding platforms is slowing compared to other crowdsourcing ventures - possibly because loans and equity offer a decent profit for investors prepared to think outside the box, especially in straitened economic times. Then there’s the problem that backers can’t readily exit their stake in a project - it’s non-returnable, and they can’t easily sell it to someone else. And that’s where crypto excels.

The peer-to-peer nature of crypto makes it the ideal medium for crowdfunding. Smart contracts or simple blockchain-based rules mean you can set a funding target and only distribute tokens if that target is met - if not, funds are automatically returned to the backers. And once they have their tokens, representing a share in the business, backers can do what they want with them. A blockchain-based approach means they can transfer or sell them to third parties with a minimum of fuss.

These advantages are what tokens platform Tokenly hopes to tap into with its new initiative. Crypto and crowdfunding make the perfect pair. ‘Tokenly’s solutions make trustless, contract-free reseller relationships and automated bulk discounts a built-in part of any crowdfunding campaign.’ Tokenly has spent significant time and resources developing sets of tools to make issuing, using and redeeming tokens as straightforward as possible, through their vending machines and swapbots. They use the bitcoin blockchain and Counterparty protocol.

Tokenly’s target was $350,000, but they have quickly passed that (125% at the time of writing) and still have the better part of a month to go - indicating something of the interest in this application for crypto and the enthusiasm that investors have for such a new approach.

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