Blockchain technology is beyond finance or cryptocurrency as the world has already started finding ways to exploit this technology. Blockchain has attained a valuable place in other sectors like art, energy, and agriculture. Thanks to the adaptability and serviceability of blockchain that it is now being used for crowdfunding. And this sector has always served as an experiential arena for modern technology.
The traditional crowdfunding has always been a controversial one. And the credit goes to its inherent issues like high fees, liquidity risk, fraudulent activities, and hidden odds. And now through blockchain technology, these issues can be resolved. In fact, companies have already started using this technology to develop secure platforms and build trust among investors.
According to the crowdfunding study conducted in Europe by Gary Dushnitsky (Associate Professor of Strategy and Entrepreneurship at London Business School), “in last 12 years, more than 700 crowdfunding platforms have been launched across 15 European countries. The UK, the Netherlands, France, Germany, Spain, and Italy are among the most active markets.”
Equity Crowdfunding and Blockchain
As the global society is increasingly interacting with the digital world, equity crowdfunding as a way of funding projects has received immense, enormous popularity. It is being used in varied industries including science and research, real estate, philanthropy, and civic projects, and many others.
AZ FundChain – a crowdfunding company – has been gambling on discrete techniques of revenue formation. Alongside, they have worked on the value generation model inside the equity as the investors are more enthusiastic when something of value is at stake. This not only makes equity-based assets a mechanism to achieve the optimal engagement but also offers an opportunity to grow profits and monetize the ROSCA (also known as money circles) for the developers. This trend has indirectly increased the market value of AZ token as more and more crypto enthusiasts are taking an interest in it.
Az FundChian And ROSCA
FundChain is a decentralized and transparent money circle and crowdfunding application running on the blockchain. It aims to solve the problems in traditional crowdfunding and money circles. It is now possible to get access to financial services related to money circles and crowdfunding via its user-friendly mobile application.
The app comes with an identity verification feature which will reduce risks related to fraud. FundChain is set to introduce Know Your Customer (KYC) processes to knock out the probability of fake accounts. Further, it will provide ratings of verified profiles to ensure transparency. Before joining or organizing a money circle, users will be able to communicate with each other via private messages; and high reputation scores will allow users to promote profitable money circles by influencing their reputation and rich background.
With ROSCA funding growing every day, FundChain will eliminate the trust and absurdly high operating fee issues faced by ROSCA funding participants. Thanks to the popularity of ROSCA funding as private funding, the internal team at AZ FundChain has figured out how to address the current issues in ROSCA funding and is prepared with smart solutions. Now, the native AZ token is set to play a role of fuel of smart contracts that are being created within the platform.
What is Driving the Project?
The development team is building FundChain according to the revenue and income business model. The platform has planned to use its native ERC20 token on the Ethereum blockchain called AZ to accept its fees. It will also charge a 1 percent fee for each withdrawal made on a money circle from a participant.
To ensure extra sustainability, the raised revenue in USDC will be used to buy AZ tokens from the market which will decrease the total token supply. The usage of USDC helps ensure no damages while making withdrawals or deposits. So, facilitators of money circles will be able to create them using both – Ethereum or USDC. Fees collected via Ethereum will be automatically converted into USDC. The users are not required to buy the token as it would be automatically bought through the fees deducted from their payments. The platform will allow users to buy the tokens onto their wallet using fiat deposits. Moreover, it does accept donations in cryptocurrency through public based crowdfunding or ROSCA based money circles.
Consistently a buyback occasion will be organized to purchase AZ tokens at US$ 1 for each one. 1 USDC will be utilized to repurchase 1 AZ token. To use this service, clients and financial specialists should send their AZ tokens to stability fund smart contract which will be distributed on FundChain platform before every buyback occasion. So, one who sends their AZ tokens to the designated address will receive an equal amount of USDC.
Future of ICO by AZ FundChain
With the advancement of blockchain technology, many investment opportunities are arising in all stages of startup funding – from crowdfunding through to an IPO.
AZ FundChain has already introduced a revolutionary solution for the major issues faced by the financial industry. The company has made smart use of blockchain technology and smart contracts to enable secure cash management. This crowdfunding platform features KYC, AML and Google authentication and verification to ensure security. This accessible and user-friendly platform enables investors to display funding flow, conduct money circles & crowdfunding, and examine profiles of participants. Currently, AZ FundChain is conducting its ICO. The private sale of its ICO started in January and will end till March when the public sale is scheduled.
Initial coin offerings (ICOs) let entrepreneurs crowdfund blockchain projects while bringing people into the world of the blockchain. The focus of AZ FundChain is to engage the unbanked communities and small entrepreneurs. Its mobile application that runs on a public Ethereum blockchain is available for iOS and Android devices. Further, the app has broken the barriers of redundant geographic and regulatory restrictions.
With its ICO getting open in March, the crowdfunding start-up is looking at a brilliant future and achievement in utilizing the blockchain innovation to progress financial inclusion. The accomplishment of the innovation in Bitcoin crowdfunding has been quite visible, and therefore the AZ FundChain platform is following the right approach to building a decentralized world.