As someone who is currently backing projects on both Indiegogo and Kickstarter horror stories about scam projects definitely worry me.
Is crowdfunding doomed? My guess is that as it currently exists, probably. That doesn’t mean Indiegogo, Kickstarter and others of their ilk will disappear but they will be forced to change their way of doing business to add more openness on risk and possibly even some investor protection. Add to that the costs of dealing with lawsuits and you’re looking at higher overhead for projects. Like so much else in this world, a couple of bad apples have ruined it for the rest of us.