How to launch your own Crowdfunding campaign with NXT
NXT platform (nxt.org) is a decentralized second generation cryptocurrency started in 2013. It has an integrated crowdfunding token and trading platform which is called NXT Asset Exchange ( stats site:nxtreporting.com) where any entrepreneur can start his or her crowdfunding campaign and successfully manage it.
If you want to be in full control of your campaign and be supported by an active and vibrant tech-savvy community consider going to NXT asset exchange. Dozens of campaigns have been funded, and dozens of projects successfully launched. Crowdfunding on decentralized platform is about to become a major driving force for start-up development, and you can turn to it if you’d like to be on the cutting edge of technology.
What do you need to launch a campaign? Let’s break it down step-by-step.
1. Come up with a brilliant idea! It doesn’t have to be a cryprocurrency related project, just come up with something innovative and interesting. The range of projects funded at NXT asset exchange is very wide – from several new cryptoccurencies to a eco-friendly restaurant and decentralized business network. Understand what you’re going to offer to your project backers. Remember that NXT AE is like Kickstarter with exits, that is your supporters are able to sell their share in your project any time.
2. Familiriaze yourself with NXT platform and download NXT client and NXT blockchain. Read the get-started guide here. Try to make a NXT currency transfer or do a test trade and NXT asset Exchange.
What you have to know here:
– NXT is a cryptocurrency, that is a distributed value transfer system (as Bitcoin). But, being a second generation cryptocurrency, it is much more than that. It allows you to issue your own token, or asset, distribute it or offer it for sale. Besides NXT offers you all other features needed to run a crowdfunding campaign: asset distribution, messaging, even dividend payments and shareholder voting can be made using NXT client software!
– It is quite easy to buy and sell NXT cryptocurrency, you can do it at many cryptocurrency exchanges such as Poloniex.com or Coinomat.com. You can exchange collected funds to Bitcoin or national currencies and use them to kick-start your campaign.
– NXT has an active user community which back all interesting projects. But you don’t have to restrict yourself, you can promote your campaign in any manner or at any place you find appropriate. Amounts of up to 5mil USD have been raised using NXT.
3. When you feel comfortable using NXT software (it shouldn’t take you long, since it’s quite intuitive) proceed to starting your campaign.
– Issue your crowdfunding token. Issuance costs 1000 NXT, which go to “forgers” (Bitcoin analogue is “miners”, nodes who support the network by using computing power to confirm transactions). Come up with a token name, number of issued tokens, short campaign description, which will be written into the NXT blockchain. Be careful here, the description cannot be changed in future! You should also have a clear funding target for you campaign, so you could calculate the number of issued assets and their initial sell price.
– After you have your token issued offer it for sale by placing a sell (ask) order at and exchange (Asset Exchange tab in the client).
– Register atnxtforum.org, introduce yourself and put your program description in NXT Assets board subsection of the forum. Start promoting your asset any other way you like too – social media, your friends and relatives, billboards and TV ads :). Describe unambiguously what the project backers are going to get in return for supporting you.
– Use the raised funds to kick-start your product. Start coding!
– Talk to your project backers. Post your project timeline and current status. You may use voting feature if you need your user’s feedback. Constant feedback is the key to success of your crowdfunding campaign.
– Launch your product and make the world a better place!
Be responsible. Once started your campaign cannot be put on hold or cancelled, since there are no moderators in decentralized system. But remember that if you abuse supporters’ trust you’ll spoil your karma and hamper the progress of technology. Be good!