NFT Marketplaces have been around since 2018 with reputable platforms such as OpenSea, Rarible, SuperRare... With the growth in transaction volumes, NFT trends also poses many risk for buyers and also creators, but mainly buyers.
A big disadvantage of NFT Marketplaces today is actually the authenticity of the artwork itself.
We understand the above is a big statement to make but we have identified the challenge of NFT marketplace today is as follow:
The Art creator can upload the same Artwork to NFT Marketplace 2 and 3 during or after selling the exact product on NFT Marketplace 1. This creates a problem for Authenticity for buyer 1, 2 and 3. Because the exact same product is bought on 3 different platforms, none will be proven to be the original owner.
Therefore, we think adding NFT to a crowdfunding platform makes perfect sense to solve this problem of authenticity for buyers or backers. The NFT token will have the data of payment and timestamp of transactions before the products are created.
NFT has transaction data of purchase only, this makes it easy to manipulate by selling the same products / artworks on different marketplaces.
Buyers from different marketplaces can own the same products.
NFT has data and timestamps of fundraising records which are created before the product is
created and uploaded to the platform. This makes it impossible to manipulate if copied products are sold later on different marketplaces.
No Authenticity Problem
Detail Crowdfunding on blockchain platform Study:
During Quarter 4 of 2020, Kaistarter, a project entirely launched on KardiaChain was founded as a DeFi platform to provide flexible earnings for its token holders via traditional business investments. Kaistarter utilizes its own tokens to govern all activities such as proposing an investment, voting for approval and claiming interest. The project has helped creators in Vietnam to successfully raise funds for their art projects and also deliver results for backers.
The first crowdfunding project was backed in October 2020 with an amount around 127,000 USD at the time for a 6-million subscribers YouTube production team in Vietnam. The series of videos created then generated a total of more than 21 millions views on YouTube with 260,000 likes and 12,775 comments and more than 6,000 USD worth of advertising revenue from YouTube.
Following this initial success, the team pushed forward and continue to help other projects to raise fund and deliver great results for backers, the notable projects are as following:
- James Huynh - Oh Wow! Mui Ne: 130,000 USD raised on November 15, 2020.
- Sugar Baby 2: 140,000 USD raised on November 30, 2020.
- Hong Mau Don: 287,500 USD raised on April 8, 2021.
Based on what we learnt from Kardiachain, we are to create a crowdfunding platform with more innovative approaches and put together a professional team with industry background to execute and bring it to the global creator network.
In early 2021, we ensembled a team of Industry Professionals with previous High-Tech Business Building Experience, together with Creator Connections to build a crowdfunding platform on the blockchain utilizing smart contracts. We also add in NFT (Non-fungible token) for our platform creating a brand new platform and name it Crowdhero.