Exploring The Differences Between FAST and Crowdfunding

FAST (Fungible Asset-backed Security Token) and crowdfunding platforms are both ways to raise capital, but they differ in several key ways which can make them very complimentary.

First, FAST is a private network, while crowdfunding is usually open to the public. This means that FAST investors are typically a smaller group of accredited investors involved in the selection and management of the portfolio, while crowdfunding campaigns can be open to anyone.

Second, FAST is focused on portfolio investment, while crowdfunding campaigns are typically centered around a single project. This means that FAST investors are investing in an actively managed portfolio where expert’s are rewarded part of their remunaration in FAST tokens also issued against equity — no dilution and 100% aligned with investors’ interests. In contrast, crowdfunding investors are investing in a specific project, with no involvement in the management or direction of the company. The companies report to the FAST client which then transfer the information to the FAST token holders via the Consilience Platform — like a nominee an “automated” nominee company. This allows for more transparency and trust. In this context, the FAST clients will be deploying capital on a deal by deal basis based on the performance of each company using the wisdom of the FAST Members.