Kickstarter’s largest rival, Indiegogo, has recently announced that it will be partnering with Microventures to conduct vetted initial coin offerings on their site. The announcement is a big move by Indiegogo, establishing themselves as innovative and risk-taking, seeking to accept changes and grow with the cryptocurrency world that is taking the globe by storm. For Indiegogo to expand into the Initial Coin Offering space, they had to make sure that they would be able to deploy it in a manner that complied with US laws and regulations. They have done so by partnering with players in the crowd equity funding space and are already in the process of hosting these funding events.
But Kickstarter, another prominent crowdfunding space, does not seem to be as enthusiastic about jumping into the new market as of yet.
According to a report recently released by CoinDesk, the statement delivered by a representative of Kickstarter was:
“The answer is 100 percent a very firm no”.
This confirmed their stance on the matter for the current moment.
Kickstarter, which was founded on April 28, 2009 by Perry Chen, Yancey Strickler, and Charles Adler, has played a significant role in the lives of many creators. They have helped creators all over the world to raise capital for their many projects. The company has raised $3,442,105,888 for 136,466 projects from 14,011,425 total backers (according to their stats page). The company has posted higher numbers in their total raises than their counterpart Indiegogo, yet may fall behind them as the Initial Coin offering market hosted on their platform starts to heat up.
The ICO market has seen significant raises over the course of the past year, seeing large sums of money going to projects. According to Hacked, the market has seen over 3 billion dollars raised in the past year and a half alone.
This means that if Indiegogo is able to ride this gravy train, they will be able to see more interest from parties that have never visited their site before due to the fact that they are specifically focused the virtual currency and decentralization market. Indiegogo and their partners are going further into the crypto space by making certain they will help to vet their offerings, in doing so, they are streamlining the process of investing by minimizing scams.
Kickstarter didn’t make any further statements as to why they are shying away from this new market at this time.
While the Brooklyn-based company mulls it over, Indiegogo has an ICO already rolling, a project that aims to take the power of decision-making in football away from coaches, owners, etc. and giving it directly to the token owning fans. An interesting twist on an old game.
“We built Kickstarter to help bring creative projects to life. We measure our success as a company by how well we achieve that mission, not by the size of our profits. That’s why, in 2015, we became a Benefit Corporation. Benefit Corporations are for-profit companies that are obligated to consider the impact of their decisions on society, not only shareholders. Radically, positive impact on society becomes part of a Benefit Corporation’s legally defined goals.
When we became a Benefit Corporation, we amended our corporate charter to lay out specific goals and commitments to arts and culture, making our values core to our operations, fighting inequality, and helping creative projects come to life.”