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Crowdfunding
Crowdfunding in the cryptocurrency space refers to raising capital for a project or venture by soliciting small investments from a large number of people, often through Initial Coin Offerings (ICOs) or Token Sales. Unlike traditional crowdfunding, where backers receive products or perks, crypto crowdfunding typically involves investors receiving tokens in exchange for their contributions. These tokens may grant holders certain rights within the project's ecosystem or function as tradable assets. Crowdfunding has become a popular way for blockchain startups to raise funds, although it carries risks such as regulatory challenges and potential scams.
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