Richard Boase | coindesk.com | June 9, 2014 – A new company called Swarm Corp is launching a decentralized crowdfunding platform that will allow companies to sell cryptographic shares easily and quickly by creating their own digital currencies.
Swarm’s COO Ben Ingram described the platform as “the Facebook of crowdfunding”. Powered by the Counterparty protocol, it effectively operates like a social network for cryptocurrency investors.
As well as helping entrepreneurs kickstart their financial product or service, Swarm aims to eliminate previous failures and scammers by performing crowdsourced due diligence on each entrepreneur or team.
The company’s CEO Joel Dietz envisages that the best initial use case is in accelerating startups, and Ingram indicated that there are already plans for a Swarm incubator based in London.
Dietz said: “The moment I saw the user-created assets on Counterparty a light bulb came on in my head – this is the future of crowdfunding.”
To raise initial capital, Swarm will be issuing its own cryptocurrency, swarmcoin, starting with a crowdsale on 17th June, which will entitle investors to a portion of the coins launched on the company’s platform in future.
Following David Johnston’s strict approach to BitAngel investing, which demands that both investments and subsequent returns are made in bitcoin, Dietz plans to raise capital for his first round using only the digital currency – a process which he described colourfully as “eating our own dogfood”.
Adam Krellenstein and Evan Wagner, the dynamic duo that founded Counterparty XCP (the platform upon which Swarm is being launched) have been working with Swarm’s five-strong team over the last few months, and said:
“Swarm brings a high level of ability and experience to the first real crowdfunding platform, with a senior engineer previously with Microsoft and Linkedin, a Salesforce MVP, alumni from Loyola, Brown, Harvard and Penn State, and an accomplished user-interface and design specialist.