by JP Buntinx
Crowdfunding projects are becoming very popular in the world of cryptocurrency. The team behind the Golem project, built on top of Ethereum, released their crowdfunding white paper to the public October 14. The project sees itself as the “Airbnb for computers” but even while that may be a precise description, it is oversimplified nonetheless.
Julian Zawitstowski co-founder of Golem stated the project is much richer on the announcement of the crowdfunding white paper:
“Golem will change how the Internet is organized by introducing a nearly-complete information market for computing power, combined with a market within which developers can monetize their code.”
As to be expected, there are different opinions about the project and the crowdfunding approach itself. It is rather evident this whitepaper is written by developers and engineers, rather than a marketer.
Every time a crowdfunding project is presented to the world, potential investors need to be cautious and down to earth. It is easy to get caught up in the hype surrounding any project, and it may even trump common sense sometimes. For the Golem project, the team size is a definite plus, as it goes to show dedication to the project in its current form.
Daniel Zakrisson, CTO of Qbtech, provided his evaluation of the white paper, where his main criticism was that there is little to no background information about the team members to find in the whitepaper.
Anyone can put eleven names, pictures, and biographies on a piece of paper. But that does not make those people, or the project, more or less successful than any other. For anyone who takes a more critical look at the Golem whitepaper, this could be one critical flaw that might keep people from investing.
That being said, the biggest selling point of any crowdfunding project is their long-term plan. An alpha release is available on GitHub, which gives people an idea of what they can expect. Unfortunately, there are critical details missing on the financial and marketing side of things, such as the plan for expansion beyond the crypto community.
To put this into perspective, it is evident new funding is direly needed to take this project to the next level. However, with no clear strategy to market this decentralized supercomputer, there does not seem to be a long-term plan to speak of right now. That situation may change in the final whitepaper, though, as this is just a preliminary release.
But perhaps the biggest issue is the way this crowdfunding campaign is set up in the first place. According to the whitepaper, all of the money raised during the campaign will be made available to the project developers from day one. More importantly, the issued tokens, called GNT, will not be subject to a “grace period”, which means investors can dump them on exchanges rather quickly. Not the best way to create a stable price point for these tokens.
There are some worrying signs about the project, although none of them are “red flags” for now. Making the funds available right after the crowdfunding campaign ended is not the best business strategy by any means, though.
Then again, this is only a preliminary white paper, and will not serve as a final indication of how the Golem project will be run. Right now, there is no official date on which the team will release the final white paper. There is definitely room for major improvements to the crowdfunding part of this project, though. But Golem itself, as a decentralized supercomputer, seems like a solid idea that will gain a lot of support.