Ready to share details about the newly launched bitcoin-powered crowdfunding platform, Gok!llo, the site’s Business Development Manager Ram Budime sat down with Coin Telegraph to discuss how it stands out from the competition.
According to the media outlet, Gok!llo is a crowdfunding platform that uses bitcoin as a cheaper alternative to traditional payment methods increasing security and reducing costs for project originators. It is incorporated on the Isle of Man and will file for its equity crowdfunding license soon.
During the interview Budime explained the new platform’s funding model:
“Gok!llo’s mission is to provide the Internet community with an effective, reliable, intelligent web platform that lets people or organizations publish their projects and get funded by other people who are willing to support them
“Gok!llo uses bitcoin as a cheap alternative to traditional payment methods to increase security and reduce fees charged to project originators – collected funds are immune to bitcoin’s volatility since they are converted to the currency of the project and held in a bank account until the fundraising period is over, when funds are then converted back to bitcoin and sent to target recipients.
“Since pledges are cashed-in immediately and funds held in a bank account, there is no risk of insolvency on the part of the backers and thus Gok!llo can guarantee pledges will be paid when a project reaches its funding target – this would not be possible if pledges were collected by credit card because credit cards were charged only when the fundraising period was over and nobody can guarantee a credit card is still solvent after 30 or more days
“Traditional funding models like AoN (All or Nothing) or KiA (Keep it All) used by most of the platforms are no longer suitable for modern crowdfunding. AoN means money is only granted if a project reaches at least its funding target, but this model might prevent great projects with huge potential from being financed just because they did not reach 100% of their funding target.
“The opposite of AoN is KiA, where money is granted regardless of whether or not a project reaches its funding target, but this other model leads to waste of funds especially when the amount reached is much lower than the funding target. Gok!llo is neither AoN nor KiA and relies on a sophisticated probability score to decide whether or not to fund a project, ensuring community funds are managed well.”
Revealing what kind of exchange service is used on the platform, Ram noted:
“The exchange service behind Gok!llo is Loyalbit, a United Kingdom-based Bitcoin exchange that takes deposits in both fiat money and bitcoin. Loyalbit offers a very secure means for trading bitcoins and thus Gok!llo entered into a strategic agreement with them to use their web services to convert funds from bitcoin to fiat and vice-versa. Furthermore, Loyalbit will also hold collected funds in escrow for Gok!llo.”
When questioned about how much the platform takes from the campaigns, Budime answered:
“Originators will publish their projects for free. If a project reaches its funding target or at least an amount Gok!llo considers adequate to be eligible for funding, then the raised amount is granted minus a fee of 7.5% withheld by Gok!llo. In case a project reaches neither its funding target nor an amount adequate to be eligible for funding, collected funds are returned to respective backers and no fee is charged.
“Gok!llo might appear more expensive than some other competitors like Kickstarter or Indiegogo, which apply a commission of 5% and 4%, respectively. The real truth is that the 7.5% applied by Gok!llo includes everything and there is no additional fees, while other platforms usually rely on payment service providers like Amazon or PayPal that charge an additional 3-5% depending on the size of the transaction.”
In regards to where he see the platform in 3-5 years, Ram added:
“In 3-5 years we see Gok!llo as the leader in Asia, Oceania, and Australia. We have also amazing development product in our pipeline but for the moment they are secret. Presently, we are looking for an angel investment to support our marketing and Business Development activities. Just for you information we have been investing our own money from idea stage of the project to bring live to the market. This shows how serious and confident we are about our new innovative platform.”
The platform is expected to go live at the beginning of September.
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