Introduction
In a surprising move, Coinbase is shutting down the GiveCrypto initiative, citing its failure to create a lasting impact. This decision has reignited the debate on the effectiveness of cryptocurrency in charitable works.
Failure to Create Lasting Change
In a detailed blog post, Coinbase explained that the GiveCrypto project, founded by the company’s head Brian Armstrong, was unable to “create lasting change purely through unconditional cash transfers.” The recipients, according to Coinbase, reverted to their initial financial state after the cessation of payments.
Redirecting Funds
Coinbase has decided to redirect the remaining funds from GiveCrypto to Brink and GiveDirectly. Brink is focused on Bitcoin’s software and protocol enhancement, while GiveDirectly aims to ensure that crypto donations have a sustained benefit.
The Journey of GiveCrypto
Launched in 2018, GiveCrypto set out to leverage cryptocurrency for philanthropy. Despite distributing over $1 million in 2022 and aiding more than 1,000 individuals, the initiative faced challenges in achieving long-term impacts.
Wider Implications for Crypto Philanthropy
Coinbase’s decision to end GiveCrypto brings to light broader challenges in the realm of crypto-based charity. For instance, Binance faced criticism for its aid efforts in Morocco following a devastating earthquake. Questions were raised about the effectiveness and appropriateness of donating cryptocurrency in such scenarios.
Conclusion
Coinbase’s move to discontinue GiveCrypto marks a significant moment in crypto philanthropy, suggesting a reevaluation of strategies to ensure more effective and impactful use of digital assets in charitable initiatives.
