📂3. PROBLEM STATEMENT
Challenges in Current Blockchain Fundraising
Blockchain fundraising, while innovative, faces critical challenges that hinder its efficiency and credibility. Many investors lack the necessary tools to evaluate projects properly, leading to financial losses due to scams and mismanagement. Fraudulent projects often manipulate market sentiment to attract investments, leaving investors vulnerable to rug pulls. Additionally, project teams struggle to navigate the complex regulatory landscape, creating legal uncertainties that can jeopardize fundraising efforts.
Some of the key challenges include:
Fraudulent Projects & Rug Pulls: Many projects manipulate token prices and investor sentiment without delivering any real utility.
Lack of Investor Education: Many retail investors do not have the expertise to assess project fundamentals, increasing the risk of poor investment decisions.
Regulatory Uncertainty: Fundraising platforms operate in a highly dynamic regulatory environment, with frequent legal changes that can impact compliance requirements.
High Entry Barriers for Startups: Smaller blockchain projects often struggle to raise capital due to the dominance of well-funded competitors and centralized launchpads.
Lack of Effective Due Diligence Mechanisms: Traditional vetting processes rely on limited data, making it difficult to ensure project legitimacy and sustainability.
The Trilemma of Modern Fundraising:
Centralization ↔ Decentralization: Platforms like DAO Maker prioritize institutional investors, sidelining retail.
Speed ↔ Security: Manual audits delay launches, forcing startups to choose between speed and safety.
Compliance ↔ Innovation: Over-regulation stifles innovation, while under-regulation enables fraud.
HomStarter AI’s Breakthrough:
Solves the trilemma via AI automation (speed), DAO governance (decentralization), and modular compliance (risk mitigation).
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