Events like this will just gradually erode Kickstarter's reputation until its business dwindles as more and more people start to regard the whole idea as too ri

Events like this will just gradually erode Kickstarter's reputation until its business dwindles as more and more people start to regard the whole idea as too risky. Kickstarter doesn't need to act to protect backers, it needs to act to protect its own position. Hopefully, though, the same solutions will serve both ends.