"You could sabotage some Kickstarter projects by pledging a large amount then blacking out a minute before it ends."
Interestingly, Bitcoin has features to make this sort of thing impossible, even without a trusted intermediary holding onto the funds: https://en.bitcoin.it/wiki/Dominant_Assurance_Contracts https://en.bitcoin.it/wiki/Contracts#Example_3:_Assurance_co...
Kickstarter is not a shop, it's a way to meet people who are interested in making you succeed; it would make a lot of sense if you could have a say in who you want to work with.
The pressure to please "consumers" is too strong, and this leads to putting all the risk on the "producers" side. Which means Kickstarter will be nothing more than a weird and sucky version of Amazon.
This works in the economic sense, not necessarily in the regulatory.
Who'd buy kickstarter credit just to hope that in 6 months there would be an interesting project to support?
The thing that wins kickstarter buyers over is the ease of supporting it. This would kill it.
Wouldn't Kickstarter just return bitcoins if the project was underfunded? Would fluctuations in price prevent this?
Is there a functioning futures market for bitcoins yet?
This is the classic solution for commodity price volatility. Both for real assets and currencies.
Seriously, I can imagine it is kind of fun to troll some overly serious dudes in a specialized forum, while I would not even waste my precious time for that. But trolling people who actually try to achieve something?
Why oh why?
Creating can mean a lot of things.. it basically means doing something constructive, hey, even daydreaming or just curiosity. For me there is either progress (doesn't have to be anything big, it doesn't even have to be your own, as long as you have the ability to be happy for others), relaxation (ditto) or frustration and the compensation for it... but any talk of "creators" is entirely yours. You don't seriously think I was trying to claim I was never a dick in my life? Hah, I wish.
Others have written about having users dispute the charge after the funding was complete and wrecking the goal.
Kickstarter is interesting in some ways, but it is a bad deal for a great many kinds of projects. "Send a satellite to space" great for kickstarter. "We are knocking off this product know one knew was already on amazon" great for kickstarter. But most products would do better selling on Amazon using a "This product will be released on X Date" because the commissions are lower, and if you are only doing $25k for a tangible thing, you can probably get the $15k loan to do it for a lot less, and you will still know how many units you sold before you have to deliver them.
If Kickstarter is going to take such a large percentage they need to do more to prevent this kind of thing from happening.
If Kickstarter deducts in advance and refunds later for a failed campaign, then it must do two credit card transactions: once to charge the money, and another to refund it. Additionally, refunds are sometimes more expensive than charges.
Not only that, but Kickstarter would also have to worry about situations like, e.g., Alice pledges money, and then later closes her card account. How would Kickstarter get the money back to Alice?
So it's almost certainly done for reasons of simplicity and avoiding legal/ethical obligations about safeguarding the money in escrow.
Except those that only come to Kickstarter to back a specific campaign, instead of backing lots.
This is why when you order things online, your credit card is typically not charged (i.e. Apple pre-orders) until your item has shipped.
IANAL so I don't know how certain things work such as Tesla deposits (what did they "ship" to you for $2,500?) and so on. But I've heard this is why Kickstarter can't do this directly.
I'm sure there are ways around it, but something to keep in mind.
The receiver will have to pay income taxes on the donations; and the giver will not be able to deduct the donation on their own income taxes. That's what requires special status.
This actually makes me realize I never thought about how people have to pay income tax on what they receive via kickstarter; I can't think of any reason they wouldn't. http://www.kickstarter.com/help/taxes
Wait, I don't get it. If the guy pulls out last minute, the project still won't be funded, no? So there would be no obligation to deliver anything. Am I missing something?
I don't think he would be liable for KS and Amazon fees for that as they are paid instantly when the transfer happens.
We don't know anything about 'Lee' and his financial situation. So we can't make any assumptions about his motivations.
IIRC from that time, this is a bigger problem when you consider that Kickstarter doesn't have any mechanismo for flagging suspicious backers, so even in the (unlikely, IMHO) case that this is an honest mistake from the backer, it will only increase once 4chan and friends hear about this.
i) Person who just wants to be a dick.
ii) Person with personal vendetta against the project creator
iii) Company looking to fend off competitors much the way of clicking lots of links to burn through a competitors ppc on adword.
If nothing else, you should show some decency and delete your comment, that probably was written, while half asleep.
Same scenario with Kickstarter. One could set an ideal funding point and run it up with fake fundings. Catch the attention of media and then hope that the bandwagon happens getting them more than what they are asking. Once funded over the amount, back out your fake fundings and voila - funded.
Also, I stated that I found the practice of funding one's own project unobjectionable. I think defunding threatens the entire model of KS, but defunding one's own project is the least objectionable aspect of that. Whatever Kickstarter can do to prevent or ameliorate defunding, within the bounds imposed by credit card practices, they should do.