> For the complete documentation index, see [llms.txt](https://shihu.gitbook.io/shihu-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://shihu.gitbook.io/shihu-whitepaper/the-origin/about-shihu/challenges.md).

# Challenges

Fundraising in the decentralized space has encountered several challenges, including:

* **Fraud and Scams:** Many projects lack legitimacy, resulting in investor losses due to fraudulent schemes and rug pulls.
* **Lack of Transparency:** Many fundraising processes do not provide clear visibility regarding fund allocation and project progress.
* **Complexity and Barriers to Entry:** Many DeFi fundraising mechanisms require technical knowledge, which makes it difficult for non-experts to participate.
* **Inefficient Fund Distribution:** Traditional fundraising models often lead to slow transactions, misallocation of funds, and a lack of accountability.


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