As a result of the information asymmetry, the financiers may exaggerate the advantages of the project in order to obtain funding smoothly, while the crowdfunding platform may relax the requirements of the data review of the project in order to obtain fees, finally causes the non-high quality project to pass the examination smoothly, on-line successfully.
Please use this problem from a backer’s point of view by writing a one-page essay.
Based on the problem identified, come up with two or three solutions that can help solve the problem. Be specific for each solution with convincing arguments and supporting evidence. Provide examples from other sources or other industry/country’s cases if applicable. Explaining based on a theory or prior research is encouraged.
Each paragraph should only explain one solution. Start a new paragraph for the next solution. Clearly explain how the solutions can be implemented. Follow logical sequence; the solutions should be directly related to the problem identified above.
Please do not include tables, figures, or any other images in this abstract. Please try to avoid using special characters, or symbols in this abstract. Define abbreviations and acronyms wherever possible.
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