Swarm which was formed on 17 June, aims to make 100 million Swarmcoin available in a limited-time crowd sale running until 20 July, has raised more than 1200 Bitcoins in just eighteen hours of crowdfunding. Crowdfunding is the collection of finance from backers, generally, the ‘crowd’ to fund an initiative and usually occurs on Internet platforms.
The collection of more than 1200 Bitcoins in just eighteen hours in crowdfunding shows that people are enthusiastic about the digital currencies as they hope the future is with them. Now, every holder of Swarmcoin will share in the success of future projects launched on the Swarm network.
Cryptocurrency companies that are the nascent stage are now using crowdfunding method quite successfully. The effort from Swarm is in consonance with similar efforts by some other digital currency companies. It has emerged as a suitable concept of an individual reaching a goal by receiving and leveraging small contributions from many parties.
The collection of funds through small contributions from many parties in order to finance a particular project or venture is emerging as the right option for cash crunched digital currency companies. This not just gives funds to the digital currency company but also hopes to thousands of investors who come along and pay their bit.
It’s All Legal Says the Company
Coming from Swarm, an ambitious new startup which has set itself the rather lofty goal of becoming “the Facebook of crowdfunding,” the crowdfunding was expected to be big; however, the unprecedented success it received surprised the company to some extent. Though Swam has collected funds in Bitcoin, it will launch its own cryptocurrency, ‘Swarmcoin.’
People can buy Swarmcoin which they can redeem later on. The company is selling them at progressively higher and higher prices, to encourage early investment. The money thus collected will be used for building a platform that will easily allow others to repeat the same process i.e. they can issue a currency, sell it for Bitcoin, and use the funds for projects.
Swarm hopes that with the funds collected it will be able to transform into a full-fledged, Bitcoin-funded startup accelerator which will allow them to pitch their value proposition to the masses, and survive and fail based on the strength of that pitch. The company says that it is legal as it believes this falls into section (1) (d) of Cryptoequity whitepaper.
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