Crowdfunding Gambling
Crowdfunding Gambling Websites
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. What is crowdfunding? Crowdfunding is a new type of fundraising where you can raise funds for your own personal cause, even if you're not a registered charity. The page owner is responsible for the distribution of funds raised.
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'?
Crowdfunding Gambling Sites
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.