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Blockchain-based startup CoinLancer aims to reinvent the freelancing industry which is worth an estimated $3.2B by providing a safe, secure, and transparent platform that will empower freelancing opportunities.
Coinlancer is a new cryptocurrency startup that aims to use the power of blockchain for developing a freelance system that works for all. When you think of freelancing, several big names will immediately enter your subconscious who dominate this $3 billion market: Fiverr, Upwork and Freelancer.
The beginning of this industry was extremely competitive. There was lot of competition and the companies were trying to get ahead of each other in providing the ultimate freelancing platform. But, it has all changed since last couple of years.
The reason: consolidation. Consolidation is going to happen in every centralized companies who are built around the concept. You know there is a freelancing platform called Elance that was a separate company and Upwork actually competed with it directly.
Back then Upwork charged 10% of the project fee as their share but as soon as we received the news that Upwork had acquired Elance, immediately we received plans regarding “revised fee structure which say contracts smaller than $500 (over 90%) being immediately charged 20%. The same thing happened with Fiverr. Now the quest is about making money alone by fleecing both the freelancers and the clients.
Now this increase is not without some justification, as the freelance companies have to hire thousands of people on a permanent salary and maintain records and all that and centralization creates certain problems as well. So, it is more of a problem related with the system rather than the philosophy.
Now, arguably, freelancers are the people who are hit most by these platforms. The reason is that clients like to pay the same amount for a gig, it is only the share of the freelancer that gets cut and while solving disputes, there is a case of freelance platforms taking the side of clients as they don’t want the people with money to go away from the platform. So, they incentivize them as much as possible and that makes sense. But, in the process, freelancers are always shown the boot.
Coinlancer aims to bridge the gap by making the process decentralized using the power of the blockchain. With its small 3% service fees that is several times less than what Fiver and Upwork charge and its fair decision making, all is not lost for the freelance market.
Just like the freelancer, clients have their own concerns about projects and they often term freelance platforms unreliable. They are also stuck with some anonymous tech support guy who doesn’t understand the problem and is underpaid and unmotivated to do the job to the best of his abilities. This is where the decentralization plays a big part in the company.
Coinlancer aims to introduce a freelance tribunal for disputes and sort. It allows other freelancers and stakeholders to vote on the disputes. Your peers are much more likely to understand your side of things. Finally, a compromise can be offered and seconded by other people. The ones who involve in this arbitration are also paid for their services from he service fee and that is the beauty of the system.
Since it is voluntary and remote, it takes a lot less time to do so. This truly is a remarkable solution to the ages-old problem of freelancing platforms. Previously, decentralization couldn’t be done but now that the blockchain is available for all including Ethereum’s programmable approach, anyone can code on it.
Coinlancer Token Sale
The project is undergoing a very successful Initial Coin Offering (ICO) right now. It has managed to raise more than $9 million already within a few days and over 15 days are still remaining.
The hard cap is at 300 million tokens and the money raised is expected to be around $50 million. A group of angel investors has already seen the potential of the platform and has given $5 mln in pre-ICO funding.