Startup sphere embraces "blockchain crowdsales"

Feb 13, 2017, 6:05 AM EST
(Source: Mike Seyfang/flickr)
(Source: Mike Seyfang/flickr)

After a big push by the emergence of websites like Kickstarter and Indiegogo, which helped unconventional business ideas take off the ground with crowdfunding, the startup ecosystem eyes another revolutionary step forward with the advent and expansion of blockchain technology. The combo of blockchain crowdfunding allows startups to create their own digital currencies, called crypto-tokens, and sell them to interested backers.

Blockchain technology, which many believe as the biggest invention after the internet, facilitates the purest form of crowdfunding by eliminating the intermediaries standing between the backers and the startup, notes The Huffington Post.

Despite a highly polarized expert opinion on this form of crowdfunding, blockchain startups raised some $200 million in Initial Coin Offerings (I.C.O.) in 2016, which shows its burgeoning popularity in the current investment landscape, notes Tech Crunch.