What does crowdfunding mean (what is crowdfunding)?
What does crowdfunding mean? According to Coindesk, what does crowdfunding mean?
What does crowdfunding mean? According to Coindesk, what does crowdfunding mean? In the stock market, investors increase trust in a company by buying securities on the open market. For example, when a listed company starts issuing a new digital asset to the public (such as Bitcoin), it attracts more investors.
The meaning of crowdfunding is to give everyone a greater opportunity to participate in the company’s internal work. If they believe they already own this new share and want to do so, they should sell or invest to get a higher return on investment.
What is crowdfunding?
What is crowdfunding? We will mainly talk about a concept today: crowdfunding, which is a way of equity investment through public fundraising. In the blockchain, it can be understood as “token issuance”. Crowdfunding is the toolization of asset or project tokenization to explore and incentivize investors to participate in the process. Crowdfunding is essentially an agreement that combines company equity, corporate reputation, and interests together. “Token” refers to a digital token generated based on a smart contract, representing the rights of the company. If this digital token is used for securities trading, these accounts can be used as collateral for their stocks to purchase the liquidity of certain products, and then repurchase the shares with the corresponding currency to the holders.
For example, when a listed company wants to sell $5 million worth of investment products, shareholders must contribute $1,000 to own this money; otherwise, the stock price will collapse. Because this stock needs to be sold at the predetermined price. However, once the stock price falls, all holders can choose to give up and exit the market. Therefore, now most investors hope that their private equity funds will be profitable, such as from Series A to Series B.
But due to the lack of such a system in the current market, many ordinary users have a high demand for initial capital, which leads some early investors to believe that they are not suitable for long-term investment in encrypted assets or venture capital, so they decide to launch a crowdfunding.
So what is crowdfunding? Crowdfunding is to establish a network community, which is a network composed of various individuals and organizations, to jointly maintain and manage the entire network. Crowdfunding refers to a form of creating and launching new projects or proposals by providing liquidity and transparency (such as using Bitcoin or Ethereum) and allowing more people to vote within the platform, thus realizing economic freedom. Crowdfunding is also called collective financing model, which utilizes public resources for joint investment, and everyone can share information and rewards among different nodes in the network. Specifically, the “components” are divided into three categories: “one group” includes different team members responsible for executing their work, coordinating processes, and decision-making processes; the other two parts are divided into several small groups for discussion and discussion to promote the development and improvement of the network.
According to US law, every company should have the obligation to perform the acts of signing contracts with others. Generally, in order to successfully hold a large conference, participate in a seminar, and be able to get enough people to attend the conference, etc., a formal crowdfunding qualification must be applied for. In other words, as long as the relevant materials are submitted, this activity can be completed.
For any business activity, whether it complies with regulatory requirements or not, it needs to go through a third-party evaluation process to confirm. If the conditions are not met, it may not be able to continue the business due to other requirements, or it may cause losses.
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