By eliminating intermediaries, blockchain democratizes access to funding, empowering entrepreneurs globally and attracting investment from a wider pool of investors.
“This enhances the attractiveness of venture capital investments by providing liquidity and reducing the risk associated with long-term investments.” Although these platforms operate in a decentralized manner, certain platforms may still necessitate users to verify their identity to adhere to regulatory requirements and safeguard the interests of investors.
The protocol employs an on-chain vesting and token distribution method to ensure that tokens are not accidentally transmitted to the incorrect addresses. Strześniewski told Cointelegraph, “Integrating governance structures and voting mechanisms in blockchain fundraising platforms brings a new level of community involvement and transparency to the process. It empowers the community by giving tokenholders a voice in key decision-making processes, such as project development milestones and budget allocations.”