Description of assignment…
a. Go to https://kickscammed.com/ (or use a similar source) and pick a rewards-based project. Explain why this project has been flagged as an actual or suspected scam or a fraud.
b. Find the original campaign material for the project. For example, if you picked a kickstarter
project, then locate that project’s original kickstarter page. If the original page does not
exist, then go back to step 1 and pick a different project for which the original campaign
materials are still available online
c. On the same crowdfunding plateform as your scam project, locate another project that is in the same industry, with roughly the same campaign size goal.
d)Compare and contrast the characteristics of the fraud project with the comparable project
you found in step 3. In particular, identify and compare the use and quality of text, use and
quality of pictures and videos, the rewards offered and costs of those rewards, the number of
reward levels, whether or not the campaign promoters have a social media presence, whether
or not they were repeat backers, and any other dimension you feel is interesting for the cases
at hand.
e)Explain if you could see potential concerns with the fraud project prior to knowing it is a
fraud, based on your analysis in Step 4.
f)Explain if there is a role for regulation that would have better protected investors against the
fraud. What would that regulation look like? Provide some specific details. And if there is
existing regulation that can help investors here, what is that legislation and why is it helpful?
g)Counterfactual analysis: suppose that the fraud rewards crowdfunding project was instead
carried out as an equity crowdfunding project. Suppose that you are the perpetrator of the
fraud that is leading the campaign. Provide a set of (made up) financial information on this
hypothetical campaign that you would present to the crowd. Is your campaign goal the
same?Which platform would you pick, and why? How much equity would you sell and
what is the valuation of the project? Would you offer voting shares or non-voting shares?
Explain why.
h)Recreate the equity crowdfunding campaign with a PPT file. (max 30 slides)
i)Explain how you would mitigate detection as a fraudulent equity crowdfunding offering.
j)In view of your strategy, is the current regulation effective in protecting investors? Or
explain how you would redesign regulation to protect equity crowdfunding investor
Outline of assigment…
Executive Summary –Identify the key problem and summarize the thesis statement in 1-5
sentences;
• Introduction/Background information – include relevant facts and issues on the campaign.
Introduction/ Background information-include relevant facts and issues on the campaign. Competitors, industry; This will provide evidence that you have conducted additional
research on the problem;
• Analyses: a good report will likely refer to things that we have examined in the course,
Analyses: a good report will likely refer to things that we have examined in the course,including but not limited to agency problems, signaling, valuation, surveillance and
regulation, empirical evidence. Consider alternatives the campaign could have considered,
and explain why some alternatives were rejected; these should be supported by both
quantitative and qualitative analyses
• Recommendation/Solution –provide justifiable and realistic responses to the issues raised
Recommendation/soultion-provide justifiable and relaistic responses to the issues raised above. Explain the reasons behind the proposed solution; support this solution with
justification and include relevant theoretical concepts as well as the results of your research.
Figures and tables can be placed in an appendix at the end of the paper, and will not count as part of
the maximum page length. All figures and tables must be numbered and all pages, including pages
with tables and figures must be numbered.
Preparation is key so please read all cases carefully. It is difficult for you to review the case if it hasn’t
been read and the solution (ie the crux of your report) is hidden in the problem description. As you
read the case, it may help if you:
1 Identify the problem. Identify the problem;
2Think about the unerlying causes of the problem. Think about the underlying causes of the problem;
3Make an outline-this will help identify the main points when writing the report;. Make an outline – this will help identify the main points when writing the report;
4examine cause-and-effect relations-try to explain why the problem occuredand which actions led to the reason for this problem;. Examine cause-and-effect relations – try to explain why the problem occurred and which
Category: Crowdfunding
1. How common is specific crowdfunding regulation around the world? Which countries have successfully introduced crowdfunding regulation that has facilitated market development? Which countries have been less successful with the introduction of crowdfunding regulation? What are some of the factors that comprise a successful regulatory system for crowdfunding versus an unsuccessful system? Among successful systems, are there nevertheless areas of potential improvement in regulatory design?
2. How common is fraud in crowdfunding markets? How common is fraud amongst firms listed on stock exchanges? What accounts for differences in rates of fraud in different types of markets for raising capital? What affects fraud in crowdfunding? Explain why with reference to theory and evidence. What tools might be used to better detect fraud in crowdfunding?
3. Does equity crowdfunding in some ways impede follow-on finance? Explain with reference to theory and evidence. Is your answer different for different types of follow-on finance?
4. In which countries around the world are fintech ventures financed by venture capitalists more common? In which countries has the growth in the number of fintech ventures been more common since the global financial crisis? Explain why, with reference to theory and evidence.
5. Why do we need cryptocurrencies? Are cryptocurrencies a security for the purposes of securities regulation? Why or why not? Explain, with reference to different types of cryptocurrencies and the ongoing regulatory debate.
6. What types of crowdfunding regulation are most desired by entrepreneurs vs investor vs portals: limits on investment, limits on capital raising, education, redemption rights, advertising, trials, time period restrictions, other? What do your answers imply about the race-to-the-top or race-to-the-bottom in crowdfunding regulation?