Vaishali Naroola looks at the risks associated with the crowdfunding sector to avoid the mistakes that led to the global financial crisis in 2008.
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Crowdfunding is a socially mediated phenomenon which relies in great part on the intrinsic trust people place in shared connections on social networks, community affinities, and the ratings of others on trusted, mainstream websites. But are the risks involved in crowdfunding well understood by those who participate in this market? If not, what are the potential consequences on the global economy?