Cumbersome Conventional Crowdfunding 🙄
Google says crowdfunding is "the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the internet."
This type of fundraising has been around for many years. It became more popular and widespread with the rise of the internet and social media.
Now, conventional crowdfunding may be one way for individuals and organizations to raise money for their projects, but it does not come without limitations and drawbacks.
It is not always easy to predict which projects will be successful. Many projects fail to reach their funding goals, and even those that do may not always deliver on their promises. This leads to disappointment and frustration for those who have pledged money to support the project. A lot of the time, conventional crowdfunding platforms can sometimes be vulnerable to fraud or other types of misuse.
New Funding Techniques (NFT 😉)
Enter NFTs. These unique digital assets often represent things like art, collectibles, or other items of value. They are called "non-fungible" because they cannot be replaced or exchanged for something else of equal value, like traditional money can.
Using NFTs for crowdfunding is a relatively new concept. In this type of crowdfunding, supporters of the project can purchase NFTs as a way to contribute money and show their support. This approach to crowdfunding has several potential benefits.
Transparency and Security
NFTs provide a transparent and secure way to verify ownership and track the distribution of funds. This ensures that funds are distributed fairly and transparently among project creators and contributors. No more crowdfunding scams.
Flexibility and Control
NFTs allow creators to retain control over their project and the distribution of funds. They can set their own rules in the smart contract for how funds are allocated and used, giving them greater flexibility and control over their project.
Liquidity and Resale
NFTs can be easily traded and sold on various marketplaces, providing liquidity and the potential for a return on investment for contributors. They can also be coded to give automated royalty payouts to the holders.
Support and Engagement
NFTs can foster a sense of community and support among contributors, as they can easily track and engage with the project and other contributors through the use of blockchain technology. Look at Bored Apes, CryptoPunks, and the other countless communities floating on Twitter.
NFTs provide access to a global audience of potential contributors and supporters, increasing the potential reach and success of a crowdfunding campaign. The world is more connected than ever and the interest in NFTs continues to grow.
Future Funding 🔮
Many filmmakers are starting to explore the potential of using NFTs to finance their projects. Kevin Smith minted 5,555 NFTs for his film, Kilroy Was Here, giving holders special access to the movie, BTS footage, a commentary track, and exclusive art. Miguel Faus funded his entire feature film, Calladita, through his NFT collection. And Julie Pacino raised over $300,000 for her feature, I Live Here Now.