Crowdfunding Gambling
As the old advertising slogan nearly had it, the reaction of most financial professionals to the rise of crowdfunding has been to shout: 'I Can't Believe It's Not a Totally Unregulated Securities Market!' In the last few months, several senior industry voices have been calling for a minimum investment size of £1,000 to protect small investors from the risks involved. But the rise of equity crowdfunding gives us an opportunity to think about what kind of regulation is actually needed, and what place we should see different kinds of capital markets having in the industrial society of the future. In particular, what do we mean by 'investment', and how does it differ from 'gambling'?
The concept of equity crowdfunding is pretty simple. Rather than going through the process of getting listed on a stock exchange, startup companies can sell shares directly to the public – either by marketing them directly to their existing customers, like Brewdog, or by advertising them on platform websites like Crowdcube or Seedrs. It is by no means entirely unregulated – many platforms are regulated by the FCA and carry out at least a degree of due diligence to weed out frauds. So far, in fact, there has only been one major fraud selling shares to the public via crowdfunding (Ascenergy, in America), and none so far in the UK. But what we have seen is a large number of business failures of crowdfunded companies, including several cases which failed so quickly they raised the question of whether there was really a viable business there at all.
Crowdfunding Gambling Companies
Despite new SEC rules, investors should see crowdfunding as gambling, not investing. By Gail MarksJarvis. May 27, 2016 at 4:53 PM. In fact, 3 of the largest crowdfunding projects ever are in gaming. Gaming works really well for crowdfunding because crowdfunding is itself a type of game. In rewards-based crowdfunding, donors are given really engaging incentives to donate. The more you give, the better the reward. Crowdfunding has become an essential tool for raising money for everything from new product launches to medical debt to scientific research. But with so many types of crowdfunding websites out there now, you might be wondering which is the best crowdfunding platform that will fit your needs.
Crowdfunding Gambling Sites
- Crowdfunding as Gambling: Evidence from Repeated Natural Experiments Swedish House of Finance Research Paper No. 19-7 44 Pages Posted: 6 Aug 2019 Last revised: 27 Aug 2020.
- GamCrowd has now opened its registration site for potential investors and start-ups for its crowdfunding service and also for buyers and sellers of services on its gambling specific crowdsourcing.