Skarp Technologies' laser razor, a product that promises to end the reign of the traditional razor, had more than 20,000 backers on Kickstarter, but officials failed to provide the crowdfunding site with enough evidence of a working prototype.
Projects seeking to fund prototypes are allowed, so long as creators do not offer the finished product as a perk.
"We encourage creators to bring early-stage and ambitious ideas to Kickstarter, as those are often the ideas that are most in need of support," a spokesman from Kickstarter told CNBC. "But we require that, from the beginning, backers are given a realistic sense of where the project stands in the development process."
That technical violation caused the campaign to be shut down.
All pledges to the campaign were cancelled by Kickstarter following the suspension. The site only charges' backers credit cards if a project reaches its goal.
Indiegogo, however, allows undeveloped prototypes to be issued as perks, so long as creators promise that they intend to make one.
The site also permits campaigns to select a flexible funding plan rather than the all-or-nothing fundraising model of Kickstarter.
Skarp Technologies opted for flexible funding and will receive all funding even if it doesn't reach its $160,000 goal. In less than 12 hours, the project has garnered more than $120,000 in Indiegogo pledges.
"Indiegogo has shown us that they are as excited about the Skarp Razor as we are," Skarp Technologies wrote on its Indiegogo campaign page. "It's clear they are interested in bringing exciting, cutting edge campaigns to their platform."
Social media started showing skepticism about the laser razor even before Kickstarter suspended the project. Some users alleged that Skarp's product utilizes unrealistic technology or would not be viable for mass market release.
"It's definitely a laser," John Fourkas, a chemist and chair of the APS Division of Laser Science, told CNBC.
The laser runs through an optical fiber, he explained, after watching the demo video. "So, once it touches a hair, enough of the light can leak out of the fiber and some it gets absorbed by the hair and ends up burning the hair off. That part is totally plausible."
Fourkas, who is not involved with the project, noted that while the product does appear to work, it may not give users a closer shave than a normal razor. He also raised one other red flag.
"I don't know what happens if one of those things breaks. I think that it is likely that it will be reasonably eye safe, but it's certainly a bit of a concern."
CLARIFICATION: Kickstarter only charges participants' credit cards when a campaign is fully funded. That was not clear in an earlier version of this article.