Crowdfunding Platform Kickstarter Will Shift to Blockchain-Based Model

Kickstarter, one of the leading crowdfunding platforms on the market, has decided to abandon its current business model and migrate to a blockchain-based platform. This will be built by an independent organization funded initially by Kickstarter to work on the protocol. The new platform will be built on top of the Celo blockchain.

Kick-Starting a Blockchain Replacement

Kickstarter, a crowdfunding platform for products, services, and ideas, announced yesterday it will shift its operations to a blockchain-based platform. The platform made the announcement in a blog post titled “The Future of Crowdfunding Creative Projects,” where it mentioned decentralization as one of the key reasons for the pivot. According to Kickstarter:

[The platform will] be available for collaborators, independent contributors, and even Kickstarter competitors, from all over the world to build upon, connect to, or use.

The newly designed platform will also be open-source, so other similar projects will be able to fork it and use it for different goals, bringing this solution to the whole developer community; this means the community will have tools to create crowdfunding sites with no intermediation. The company further explained that a whitepaper for the new organization will be released in the coming weeks. Other big companies recently are also including blockchain elements in their developments.

New Platform and Governance

The Kickstarter team believes their crowdfunding expertise will allow them to produce a blockchain-based protocol to better suit their needs. The new protocol will be created by an independent organization financed initially by Kickstarter. Kickstarter will also create a Governance Lab, that will be in charge of supervising the methods of governance for the protocol. This lab will undertake research and issue communications about the best ways to govern the new protocol using blockchain tools, including DAOs.

The crowdfunding protocol will be deployed on top of Celo, a smart contracts-enabled, “carbon-negative” blockchain (due to its proof-of-stake consensus algorithm). Kickstarter elaborated that Celo will minimize the environmental impact of the protocol. Celo’s price also benefited from the revelation, rising to $4.48 after the announcement. The price has since dipped to $3.93 moving alongside bitcoin, ethereum, and most cryptocurrencies, which are currently posting losses.

However, some users have been very vocal on social media about their dislike for this decision, stating they are not aware of the benefits such a change could bring to the platform, and criticizing the possible environmental effects.

What do you think about Kickstarter pivoting to blockchain? Tell us in the comments section below.

Cryptocurrency Exchange Huobi Global to Leave China This Month

Cryptocurrency Exchange Huobi Global to Leave China This Month

Digital asset exchange Huobi Global has revealed its intention to exit the Chinese Market. The crypto trading platform with Chinese roots said it will stop processing transactions for existing users on the mainland by the end of the year.

Huobi Global Halts Services in the People’s Republic

Crypto exchange Huobi Global is going to discontinue services for users based in mainland China this month. In a statement quoted by the English-language Chinese TV channel CGTN, the company announced on Sunday that starting from 11:00 a.m. Beijing time on Dec. 14, users in the People’s Republic will not be allowed to purchase cryptocurrencies.

Huobi Global further detailed it will cease crypto exchange operations on the following day, Dec. 15, and terminate all crypto asset trading by 12:00 p.m. on Dec. 31. However, traders will still be able to log into their accounts and apply for the withdrawal of remaining assets within the next one to two years, emphasized the platform, which has not accepted new customers from China since September.

The report notes that several cryptocurrency exchanges are preparing to pull out of the Chinese market by the end of 2021. Their moves come after Beijing’s decision this year to reiterate restrictions on cryptocurrency transactions which was followed by a crackdown on trading and mining. Besides Huobi Global, the list includes other major platforms such as Binance and Kucoin.

The state-run CGTN remarks that China has been stepping up efforts to limit the crypto market amid what it calls a global cryptocurrency crackdown. “Concerns grow that the highly volatile digital currencies could undermine the stability of financial and monetary systems, increase systemic risk, promote financial crime and hurt investors,” the news service adds.

The People’s Republic banned crypto-related activities back in 2017 and while the government went after coin trading and token sales, authorities did not interfere with mining until this spring. In May, the State Council, the cabinet of ministers in Beijing, decided to clamp down on the crypto industry following President Xi Jinping’s pledge for the country to achieve carbon neutrality in the next four decades.

Leading mining hardware producer Bitmain provided another example of a major crypto company exiting the Chinese market. In October, the Beijing-based manufacturer announced it will no longer ship its products to the mainland, explaining the move was in response to local regulations. As is the case with other businesses, Bitmain stressed the decision does not concern its operations in the special administrative region of Hong Kong and neighboring Taiwan.

Do you expect more crypto companies to pull out of the market in mainland China? Tell us in the comments section below.