Boomstarter.Network, Eastern Europe’s largest service helping generate pre-orders for tech and business startups, this week introduced payments with cryptocurrencies.
Until now, leading global crowdfunding platforms have been offering only payments in traditional, centrally issued currencies
processed by third parties — banks or payment systems. This leads to delays, with entrepreneurs waiting on average weeks to receive the money and start fulfilling their obligations to the community of buyers.
Cryptocurrencies make it possible to eliminate total dependence of crowdfunding on centralized financial institutions.
Entrepreneurs on world’s busiest crowdfunding platforms now cannot quickly receive the funds they have already collected for
product development. Banks traditionally process such payments in a matter of a few days or weeks. As a result, the product roadmap is disrupted, the buyers are disappointed, and startups spend time, effort and money to compensate for the delay.
Cryptocurrencies solve the problem of long waiting times for payments to be received on crowdfunding platforms. For
example, transactions on the Ethereum network take a few minutes on average.
Often buyers themselves are faced with the problem of making payments for pre-orders on a crowdfunding platform. If the
buyer and the platform are located in different countries, banks may reject payments due to their internal regulation and require additional authorization from the payer, turning the purchase into a series of bureaucratic procedures. These geographical restrictions can be removed with cryptocurrencies.
For Boomstarter.Network, introducing cryptocurrencies heralds the transition to a new service based on blockchain technology that the fintech company is now developing. It will help generate sales for startups from around the world, CEO Maria Dokshina said.
“Boomstarter.Network will accept all payments only in cryptocurrencies in Q2 2019. This means that entrepreneurs from any geography will be able to start selling their products, unlike now when biggest crowdfunding platforms simply do not allow startups outside of a very limited number of developed countries. For those buyers who are not yet into crypto or just do not want to spend, we introduce mining tools letting them generate the most popular digital money with ordinary home computers.
“This is called cloud mining, it is very safe and simple. If the startup builds a community of supporters, then all together these people can generate significant amounts of cryptocurrency for this startup.”