Technology has cut short the distance between people, nurturing trust and fueling innovation. Consequently, peer-to-peer fundraising is on an ever-increasing spike.
Long gone are the days when you had to wait for institutional investors to back your project. Whether you are a small-scale businessman embarking on a new venture or an individual looking to harness your talent, peer-to-peer fundraising allows you to connect with like-minded people and give wings to that dream.
How does peer-to-peer fundraising work
In peer-to-peer fundraising, you launch personalized online campaigns directly to potential supporters, spreading the word about your dream. It is then shared with people who might support the cause. Those who resonate with the idea fund the project and claim a share of the profit generated. It could be as simple as sending money to a bank account and manually paying back investors.
However, if you expect wider support, it would be better to opt for a more sophisticated system to source funds and distribute benefits to investors. VirtualStaX is a good example. TheXchange through VirtualStaX has provided the first global exchange for talent. The heart of the company can be summed up in its mission statement BELIEVE: Giving people a platform to believe in themselves to power their future and allowing those who believe in them to share in their success and participate in their journey.
People driven by different passions, whatever that may be, can launch digital trading cards called VirtualStaX showcasing their talents on a global stage. Issuers get 100,000 VirtualStaX, which will then allow friends, family, and fans to buy the cards and be a part of their journey.
In this peer-to-peer market, holders can buy, share, and trade cards using the StaX App, which launches in early 2022. As the popularity of a star rises, so does the demand and price of each StaX. If you were wondering how the system pays back investors, this is how: Through a digital security called TurnCoin.
How does TurnCoin fit into the picture?
TurnCoin is a compliant, revenue-sharing digital security that powers the VirtualStaX platform. TurnCoin is made available through compliant Securities Offerings that generate the capital to develop, promote and manage VirtualStaX worldwide.
10% of every StaX sold and 1% of all trades, are distributed to TurnCoin holders through monthly yields on a pro rata basis. So, 90% of a talented individual’s revenue goes to him or her, while the remaining 10% is distributed to TurnCoin holders via smart contracts.
Leveraging blockchain, VirtualStaX eliminates the role of middlemen and gives fans direct access to individuals whose work they admire. The relevance of StaX is further emphasized by the NFT momentum. Whereas most brands and celebrities launch NFTs to create buzz, VirtualStaX takes it a notch up as a means for peer-to-peer fundraising.
Why does peer-to-peer fundraising work
What makes peer-to-peer fundraising attractive to individuals and investors alike? Let’s take a look.
1. Talent is everywhere, opportunity is not
Creativity is the foundation of human civilization. New ideas can combat the problems we face, make our lives easier, and raise the standard of living for all. However, in the present circumstances, not everyone has the opportunity to showcase their talent and monetize it. Owing to the lack of opportunities, competitions are confined to people from well-off backgrounds.
This is not just a disadvantage to the poor and unprivileged, but everyone. The inequitable distribution of funds stunts growth across industries.
Peer-to-peer fundraising bridges the gap. Platforms like TheXchange empower people to take charge of their journey without going through the hassles of institutional fundraising. Here, the only prerequisite for entry is passion. If you have that, and you manage to win the trust of people, your future is secured.
2. Greater emphasis on the human element
Peer-to-peer fundraising is a great way for people to work together for a common cause. When it comes to celebrities, this gives them an opportunity to reinforce their connection with fans and monetize the relationship. Supporters, on the other hand, get to express their love for the mission, with tangible results.
Through VirtualStaX, issuers also have the ability to offer loyal supporters exciting and exclusive utility and in doing so, increase the desirability of their StaX.
3. Word of mouth promotion
As the popularity of the StaX App grows and more issuers use it to their advantage, word of mouth is expected to increase awareness of the platform. As supporters of StaX issuers realize that they can fund their careers and passions in a similar way, more and more issuers will seek to offer their own StaX to family, friends, and fans.
How to get started with peer-to-peer fundraising
If you are intrigued by peer-to-peer fundraising, TheXchange is a great place to back your mission with the help of people. It gives emerging and proven stars from sport, Esports, music, acting, business, art, and entertainment the chance to build a loyal community of followers and keep them engaged. Visit VirtualStaX to join the waitlist for this exciting launch.
Another aspect that defines TheXchange is its native token, TurnCoin — a revenue-sharing digital security that derives its value and yield from the sale of every VirtualStaX. 10% of every StaX sold, and 1% of all trades, are distributed to TurnCoin holders through monthly yields on a pro-rata basis. So, 90% of a talented individual’s revenue goes to him or her, while the remaining 10% is distributed to TurnCoin holders via smart contracts.
The increasing popularity of peer-to-peer fundraising is expected to boost the revenue shared to TurnCoin holders. Even if you are not directly associated with any star or StaX, the platform allows you to tap into the growth of peer-to-peer fundraising. Considering all the talented people around the world in all passions of life, the VirtualStaX platform is well positioned for exponential growth.