AdejumoSince the creation of bitcoin in 2009 and the subsequent creation of altcoins, the crypto market has risen, producing billionaires such as Brian Armstrong of Coinbase, the largest U.S. exchange, and Chris Larsen.
The Rise of Crypto Donations
Several organizations have engaged in the donation of crypto for the betterment of society, some with an underlying intention to boost the crypto market. These organizations have proven that their acquisition of wealth through crypto will be used for ennoble strides.
Ripple, a crypto startup involved in the creation of the digital asset XRP, donated $29 million of it’s currency to support public schools in the U.S. Brad Garlinghouse, the CEO of Ripple had previous relations to the foundation DonorsChoose.org, and this served as a motivating factor to Charles Best the CEO of the foundation. Charles solicited donations from Ripple and it was granted.
The donation which was announced by Stephen Colbert, the host of “The Late Show” on his Tuesday night broadcast, is the largest contribution of digital currency ever to a single charity. This donation provided classroom materials for over 28,000 public school teachers across all 50 states.
Pineapple Fund which started in December 2017, made a huge impact as regards crypto donations. This was a philanthropic project by a person, Pine, who desired to remain anonymous. The anonymous bitcoiner gave over 5,000 bitcoins to 60 charities, the equivalent of $55 million. This Pine had initially donated $20 million’s worth to 13 different organizations.
Another instance of charitable giving of crypto is that of OmiseGo and Etherum’s founder, Vitalik. OmiseGo, a fintech startup, donated to refugees in Africa through GiveDirectly, a nonprofit organization in East Africa that serves as a link through which people can send donations to people living in extreme poverty. OmiseGo in conjunction with Etherum‘s Vitalik donated $1 million in the form of OMG tokens.
The CEO of Coinbase, Armstrong has developed a nonprofit that distributes crypto to the poor. According to Armstrong, the goal of GiveCrypto is to “raise funds from early crypto holders and distribute payments to people all over the world who are either living in poverty or going through some sort of economic crisis”. After test running the available means of distributing the donations, Armstrong settled on the Ambassador Program.
In the year 2018, Armstrong personally donated $1 million to GiveCrypto. Chris Larsen, the co-founder and former CEO of Ripple and Zooko Wilcox also donated $1 million each, with others like Brad Garlinghouse, Brock Pierce, and Matthew Roszak making generous donations.
The founder of the Etherum, Vitalik Buterin, made a donation of about $1.4 billion to the Indian Covid Crypto Relief Fund which was set up by an Indian crypto entrepreneur. He donated 500 Etherum and 50 trillion Shiba Inu coins.
Organizations that Accept Crypto
Organizations were initially skeptical about receiving crypto as donations. However, they have opened their arms to it since witnessing and experiencing how beneficial it can be, even more so than fiat money. With crypto, you can easily and anonymously donate from anywhere in the world without incurring high fees. Great, right? It has also proven to be more tax efficient. We are at the point where some organizations don’t just accept crypto but prefer it. Some organizations that are open to crypto donations include
- Electronic Freedom Foundation
- Human Rights Foundation
- Food for Life Global
- The Water Project
- The Leukemia and Lymphoma Society
Why should you be careful who you donate to?
As with donations made using fiat money or other items, donating crypto is vulnerable to scams and fraud, even though it is more secure compared to the other forms, because of blockchain technology.
Before making donations, it is advisable to follow the due process of making extensive research, identify the organizations that align with your ideals; ones you think can make an impact. Also, if you are concerned with the acceptance of the crypto you are donating, make sure the organization you’re donating to, doesn’t “abuse” the crypto which could result in the dwindling of its value. Lastly, make use of platforms that connect donors with organizations, like GiveCrypto.
The relevance of crypto is increasing by the day and more organizations are opening their hearts and doors to donations in form of crypto. So, if you have amassed wealth in crypto and you’re willing to give back to society, it’s a great thing to do, but make sure you do it right.