What are the key differences between blockchain funding and traditional funding?

What are the key differences between blockchain funding and traditional funding?

Blockchain funding typically involves decentralized platforms and cryptocurrencies, while traditional funding relies on banks and investors.

Can you explain how blockchain funding works?

Sure! Blockchain funding often uses Initial Coin Offerings (ICOs) or token sales, where projects raise funds by selling tokens.

What are the advantages of using blockchain funding?

Advantages include greater transparency, lower fees, and access to a global investor base without intermediaries.

Are there any risks associated with blockchain funding?

Yes, risks include regulatory uncertainty, market volatility, and potential scams or fraudulent projects.

How does investor protection differ between the two funding methods?

In traditional funding, investors often have legal protections, while blockchain funding may lack such safeguards, making due diligence crucial.