Five crypto philanthropy initiatives you need to know
Blockchain technologies have caused major changes in the way we use money. Even in the field of philanthropy – which is the act of helping others through charity – no one could remain immune to this. As the name implies, crypto philanthropy is all kinds of philanthropic activity that in some ay uses blockchain technologies.
Advantages of crypto philanthropy
Making monetary transactions has never been as easy as it is today. With the emergence of cryptocurrencies, sending money to anywhere in the world has become faster and cheaper than ever.
Philanthropic institutions often work internationally and depend on donations for their existence – and crypto is a fantastic way for them to raise and receive funds. A user looking to donate to a charity can do so anywhere on the planet in just a few clicks with the help of crypto.
Another huge attraction of crypto donations is the greater transparency of transactions. It is easier to know that donated money has reached its recipient because blockchain technologies record all transactions in a ledger similar to a publicly available spreadsheet. This obviously creates more trust in the system.
Disadvantages of crypto philanthropy
Most of the disadvantages are related to ignorance of the technology itself. There are still relatively few people who know and use crypto. The volume of donations in this sector is still small compared to fiat currencies, such as dollar, euro, real, peso, etc.
In addition to that, there is still a serious concern about fluctuations in the value of cryptocurrencies, which is likely to become a factor of less influence in the future with the popularization of stable coins. Not to mention, you can always quickly exchange cryptocurrencies for fiat currencies, avoiding large losses (or losing out on benefits!) due to fluctuations.
Innovations in Cryptophilanthropy
Traditional philanthropic organizations have already started using crypto to get new members and widen their income source types. For example, some well-known international groups, such as UNICEF, Hope and the Red Cross, that already accept donations in some of the most famous cryptocurrencies.
Apart from these traditional forms of philanthropy, blockchain has made it possible to create new ways to make and receive donations. Some companies already have their own cryptocurrencies as a way to reinforce their work: by inserting their cryptocurrencies into the market, these groups can finance their activities by valuing their tokens.
Another type of a relevant innovation in this field is the emergence of crypto funds specialized in philanthropic activities. They use blockchain to give transparency to the transactions carried out and support the projects.
We made a list of the most relevant crypto-philanthropy initiatives that exist today.
The Kickicoplatform specializes in supporting philanthropic projects and business initiatives through the blockchain. Anyone can create their own project on the site, which hosts IT, biotechnology, agriculture, etc. initiatives.
The site has its own cryptocurrency, the KickToken (KICK), that is used to make transactions. The website is able to obtain benefits and remain active thanks to the appreciation of KICK value, which currently has an estimated capitalization of 1.24 million dollars.
Like Kickico, PinkCoinis a platform that acts as a mediator between willing donors and philanthropic projects, such as relief funds for environmental disasters, education and health initiatives, etc.
It also has its own cryptocurrency, PINK, the capitalization value of which is currently estimated to be $ 700,000. It is an altcoin like all others, which can be bought or sold through the platform’s website. In this sense, the coin is unique in its purpose and its user community, since most transactions are made for donation purposes. Investing in PINK is also a way to invest in the causes of the platform.
3. Pineapple Fund
The Pineapple Fund was created by a completely anonymous donor. According to the project website, this individual, who identifies himself as “Pine,” got 5104 Bitcoins after mining during the first years of the cryptocurrency’s existence.
With the motto “from the moment you have enough money, money does not matter anymore”, the anonym sold all their Bitcoins in 2017, obtaining 55 million dollars. This amount has been donated to several philanthropic projects worldwide, the names of which you can check on the website.
4. BitGive Foundation
Created in 2013, the BitGive Foundation is a bitcoin donation platform that hosts philanthropic projects worldwide. In addition to the high speed of transactions and low costs, one of its main defining features is transparency: users can track their transactions in real time and know what has been done with the donated money.
It finances projects that provide clean water for drought-affected places, as well as construction of affordable housing and support for victims of natural disasters. All this with crypto.
Another innovative crypto donation platform is GiveCrypto. Unlike BitGive, donations are not made to a project or NGO, but directly to the people who need money.
Blockchain tools are especially useful for this type of charity. According to the project’s website, 2 billion people have cell phones, but not a bank account. In this way, the destitute can receive amounts in virtual wallets on their mobile phones, enabling them to then withdraw funds in local currency or carry out online transactions.
Conclusion: Crypto is good for philanthropy!
As we have seen, many innovative initiatives in the philanthropic sector have taken shape with the emergence and popularization of blockchain and cryptocurrency. However, there is still a lot to be done and improved in this sector!
There are a few cryptophilanthropic initiatives in the Latin American context. With the increasing popularization of crypto on the continent, philanthropic entities can certainly benefit from these technologies.
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