Markets

Why Crypto Donations Are Rising in 2024

Published

9 months ago

10 July, 2024

In 2021, the nonprofit sector quietly became the most crypto-friendly arena in the world. Millions of dollars were being donated, and thousands of nonprofits had active initiatives to partner with crypto philanthropists.

When crypto markets crashed in 2022, the nonprofit sector began to think the crypto-philanthropy party was over. After a record-breaking 2021 in which my organization, The Giving Block, facilitated $69 million in crypto donations, crypto-based charitable giving slowed when FTX collapsed.

Pat Duffy is the co-founder of The Giving Block, a platform that helps investors donate crypto to charities, educational institutions, and faith-based nonprofits. The opinions expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.

Today, market caps are rising again, and in turn, crypto donations are pouring in. We’ve spent the past few months helping crypto investors donate tens of millions of dollars to charities, faith-based organizations, and universities, from ocean conservation charities to refugee aid organizations.

If anyone thinks this is simply business as usual, they are sadly mistaken. Crypto philanthropy is back in a big way. And what makes this surge unique is the diversity of giving modalities, driven by much more than the price of BTC, ETH, and so on. The current Web3 charitable giving trends were built during the last bull cycle, battle-tested and optimized by the bear market, and are now reaching maturity as the market approaches an expected period of breaking previous all-time highs.

Here are some of the little-discussed ways Web3 and the cryptocurrency community are changing the nonprofit world for the better.

When we launched The Giving Block six years ago, we knew that Bitcoin and Ethereum donors were here to stay. The generosity of meme coin holders, however, surprised us.

Last cycle, we thought the rise of Dogecoin and Shiba Inu donors would be a passing fad, with DOGE becoming the most donated cryptocurrency in Team Seas’ $30 million campaign led by Mr. Beast and Mark Rober. But memecoins remain a genuinely valuable source of charitable funding today. This time around, some new memecoins have emerged onto the charitable giving scene to make a difference.

The Baby Doge team has donated over $500,000 to support animal shelters and other animal welfare programs around the world. Baby Doge is even launching an API to easily enable crypto donations from their community, as they seem to be making charitable giving a part of their DNA. They even set a Guinness World Record for more pet food donated in 24 hours.

Meanwhile, BONK was one of the most donated cryptocurrencies when the price took off earlier this year, as its community immediately turned gains into impact. The BONK community is in the process of developing an on-chain program and decentralized app that allows users to donate crypto to animal-focused charities working with The Giving Block. The app handles the donation process, burns a small percentage of BONK tokens, and matches donations. We’re excited that a community that has increased its investment by 8,000% in the last twelve months has been inspired to make a long-term commitment to charitable giving.

We’ve always said that crypto philanthropy is a two-way street. Meme coin projects demonstrate how crypto communities grow by funding social causes, creating a mutually beneficial cycle of increasing awareness of the token and the cause they support. But these relationships don’t exist in a vacuum. Some philanthropic strategies coming out of Web3 have a real opportunity to change how traditional nonprofits systematically raise funds, as some organizations have begun to embrace quadratic funding.

It is well known that Ethereum co-founder Vitalik Buterin was the co-creator of quadratic finance, which has been called “a mathematically optimal way to finance public goods in a democratic community.” Over time, it has become one of Web3’s favorite methods of funding projects of all kinds.

In December 2023, the Gitcoin Community Quadratic Funding Round raised 2,971 donations from 1,058 donors to finance six projects that will further the life-saving work of the American Cancer Society.

For nonprofits looking for ways to engage new donor communities, quadratic funding presents a path forward, a way to break the mold of traditional fundraising methods and embrace innovation.

In a similar vein, more and more humanitarian organizations have been piloting aid delivery via stablecoins, from UNHCR to Mercy Corps Ventures. With each trial, the impact sector is moving closer to embracing more of crypto and blockchain’s most promising use cases.

We’re also seeing the legacy of NFT fundraising continue. During the last bull market, innovative projects like Women and Weaponsdonating six figures to the Malala Fund, which supports girls’ education, set the stage for a culture of charitable giving. We’ve even seen major charities and global brands collaborate on NFT initiatives, as was the case when beer company Stella Artois chose Gary Vaynerchuk’s Vayner3 to launch an NFT drop to support Water.orga group that promotes clean water and sanitation initiatives

Today, mainstream bitcoin-based projects like NodeMonkes are pushing the boundaries of NFT charitable giving. Creators including Jack Butcher have empowered collectors to understand the positive impact they make with each NFT purchase.

We’ve also seen a rise in Web3 influencers asking their communities to donate crypto for good. One example is the Crypto Twitter personality known as Leap, who raised over $100,000 in Ethereum and Solana donations for cancer treatment and research.

Billions of dollars have been donated to nonprofits using cryptocurrencies, and tens of billions of dollars will be donated as the market matures and donors take advantage of the tax breaks it offers. As a result, crypto fundraising has become a major focus in the nonprofit sector, and as crypto continues to grow as a major asset class, nonprofits will continue to rely on crypto donors as a cornerstone of their strategies to thrive through the Great Wealth Transfer from older generations to Millennials and Zoomers.

Some nonprofits will find the kaleidoscopic diversity of the crypto donor community daunting. Despite the fact that most of the Forbes 100 largest nonprofits are fundraising with crypto today, many small and mid-sized nonprofits aren’t even equipped to accept major assets like Bitcoin and Ethereum, let alone navigate topics like NFTs and meme coins.

Forward-thinking philanthropists across the Web3 ecosystem will continue to provide incredible opportunities for nonprofits at the forefront. These efforts will set the stage for some of the most exciting crypto-philanthropy programs in the years to come. But I’m equally excited about crypto-philanthropists who are slowing down to find charities where they exist.

With more nonprofits accepting cryptocurrencies than ever before, cryptocurrency investors who take the time to educate their favorite organizations on the fundamentals of Web3 will play one of the biggest roles in driving continued adoption in this sector.

There are more nonprofits raising funds for crypto today than ever before, but that’s only thanks to the people in the Web3 community who continue to step up and make donations and opportunities that draw them into our industry.

The current trifecta of nonprofit adoption, Web3 innovation, and bullish market conditions has set us up for the most exciting chapter in crypto philanthropy yet. And if we continue to be innovative in philanthropic projects, patient with our philanthropic partners, and generous with our philanthropic contributions, crypto will remain one of the fastest-growing giving methods in the nonprofit sector.

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Related Topics:Charities Opinion philanthropy

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FinCrypt Staff

We are the editorial team of FinCrypt, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on FinCrypt, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Markets

Crypto Markets Rebound as Spot Bitcoin ETFs Attract Massive Inflows

Published

9 months ago

17 July, 2024

FinCrypt Staff

Crypto Markets Rebound Ahead of Early Ethereum ETF Approval

This week saw $722 million worth of Bitcoin spot ETF inflows, including the largest daily inflow in a month.

Cryptocurrency markets rallied on Wednesday, driven by inflows into spot Bitcoin exchange-traded funds (ETFs).

The price of Bitcoin (BTC) is up 3% over the past 24 hours to last change hands at $65,200, according to CoinGecko. Ethereum (ETH) is up 2% and is trading at $3,471. Solana (SUN) and Polkadot (POINT) increased by 4%.

Bitcoin spot ETFs saw $422 million in daily inflows on Tuesday, the highest in the past 30 days, according to Far side data, . The all-time record for a single day was $1.05 billion on March 12.

Among Tuesday’s top contributors, BlackRock’s IBIT led with $260 million in inflows, followed by Fidelity’s FBTC with $61 million. This week has already seen more than $722 million in inflows.

Among the top 100 cryptocurrencies by market cap, Worldcoin (WLD) led with a 28% increase, followed by Helium (HNT) with 20% and Lido DAO (LDO) with 15%.

Worldcoin, a decentralized identity project led by OpenAI CEO Sam Altman, announced is extending the lockups for early investors and team members. This means that tokens will be gradually released through 2029, instead of the original 2027 plan. Token unlocks are generally seen as a negative because they increase supply and early investors can sell their tokens for profit.

Meanwhile, XRP, the token of the XRP Ledger network, jumped 8% after the CME and CF benchmarks introduced new indices and reference rates for XRP.

U.S. stocks faced a downturn on Wednesday. The S&P 500 fell 1%, while the Nasdaq Composite and Dow Jones Industrial Average both fell 2%.

Source

Markets

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Published

9 months ago

17 July, 2024

FinCrypt Staff

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Crypto markets appear to have been taken over by the bulls as major tokens have surged above their crucial resistance zone. Bitcoin surged above $65,000 while Ethereum was above $3,500, and XRP, which had remained passive for quite some time, surged over 40% in the past few days to hit $0.6. The uptrend has been captured in most altcoins, with Worldcoin (WLD), Arweave (AR), and Injective (INJ) leading the rally. Here’s what to expect for these tokens in the coming days.

Worldcoin (WLD) Price Analysis

O Worldcoin Price has been trading inside a descending wedge since it marked a new ATH near $12 in the final days of Q1 2024. The recent price action helped the price break out of the upper resistance of the wedge, breaking above the crucial resistance zone between $2.21 and $2.39. Market sentiments have changed, but technicals suggest that the bulls may remain passive for a while, which could offer some room for a bearish pullback.

The price broke out of the wedge with a significant increase in volume, but the current volume suggests that the bulls have taken a step back. Meanwhile, the RSI is about to reach the upper boundary, which could attract bearish forces. Additionally, the DMI has undergone a bullish crossover, but the decline in the ADX suggests that the rally may remain consolidated above the gains. Therefore, the WLD price is expected to maintain a horizontal consolidation between $3 and $3.3 and trigger a fresh rally to $4.4 during the next bullish rally.

Arweave (AR) Price Analysis

Arweave formed a strong base around $25, which helped the rally trigger a recovery during the bearish attack. Mt. Gox and German terror forced the price to fall below $20. However, the recent price action has brought the altcoin within the bullish range and raised expectations of maintaining a decent uptrend for a few more days.

AR price has hit one of the major resistances around $30 to $31.5, which could act as a strong base once overcome. The buying volume is slowly increasing, which could keep the bullish hopes for the rally high. Moreover, the supertrend has just flashed a buy signal, indicating a clean reversal of the trend. Therefore, AR price seems primed to maintain a healthy uptrend and rally above $40. However, if the bulls maintain a similar trend, making new highs above $50 may not be a tedious task for the bulls.

Price Analysis of Injective (INJ)

Injective price has been showing sharp strength since the beginning of the year and hence, the recent turnaround is expected to revive a good uptrend going forward. The bears engulfed the rally to a large extent, but the recent price action suggests that the bulls have regained their dominance. Therefore, INJ price is expected to maintain a strong uptrend with a bearish interference on the way down.

INJ price has surged above the lower support zone and has registered consecutive bullish candles. Although the volume is below the required levels, the OBV is maintaining a sharp uptrend. Furthermore, the Ichimoku cloud lead span B is heading towards the lead span A and a healthy crossover indicates the start of a new uptrend. However, INJ price may be out of the bears’ reach once it secures the resistance zone between $30.77 and $32.12, which seems to be on the horizon.

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Markets

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Published

9 months ago

17 July, 2024

FinCrypt Staff

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Ethereum (ETH) supply on exchanges has hit a 34-month high as the asset’s price surpassed the $3,500 mark.

ETH has risen 2.3% over the past 24 hours and is trading at $3,490 at the time of writing. The second-largest cryptocurrency — with a market cap of $419 billion — briefly touched an intraday high of $3,517 earlier today.

ETH Price, Whale Activity, RSI, and Exchange Supply – July 17 | Source: Santiment

Ethereum’s daily trading volume also increased by 7.6% to reach $19.8 billion.

According to data provided by Santiment, the supply of Ethereum on exchanges has reached $19.52 million ETH. This level was last seen in September 2021, when the asset was trading around the same price.

On the other hand, data from the market intelligence platform shows that the number of whale transactions has fallen by 12% in the last day — falling from 8,730 to 7,629 unique transactions per day.

The move shows that the supply of Ethereum on exchanges has been increasing with small deposits rather than large transactions from whales.

Additionally, the ETH Relative Strength Index (RSI) is currently hovering at the 60-mark, per Santiment. The indicator shows that Ethereum is slightly overbought at this price point, but it may not be in a critical position due to its large market cap.

One of the main drivers of Ethereum price increase is ETH spot expectations ETFs in the US Investment products are scheduled to start trading on July 23rd.

Source

Markets

Bits + Beeps: How to Play the ‘Trump Trade’ in Cryptocurrencies After the Assassination Attempt

Published

9 months ago

17 July, 2024

FinCrypt Staff

Bits + Bips: How to Play the ‘Trump Trade’ in Crypto After the Assassination Attempt

Also, how much will the Fed cut rates (and when)? What will be the inflows into ETH ETFs? And what is the near future for Bitcoin?

Posted on July 17, 2024 at 12:00 PM EST.

Listen to the episode at Apple Podcasts, Spotify, Capsules, Source, Podcast Addict, Pocket molds, Amazon Musicor on your favorite podcast platform.

In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger and Joe McCann, joined by guest Jack Platts, dive into the market reaction to the recent assassination attempt on former President Donald Trump, analyzing how this event will influence the 2024 US presidential election and the cryptocurrency markets.

They also cover potential rate cuts: Could there be a cut in July? How big could the September rate cut be? Could the decision be influenced by the upcoming election?

They also give their predictions on what percentage of BTC ETF inflows the ETH ETFs will reach, and James talks about what he expects for Grayscale’s ETHE (hint: his outlook would be positive for ETH).

Finally, they delve into what’s next for Bitcoin as the German government runs out of BTC and Mt. Gox distributions begin. Just now?

Program Highlights:

Whether Trump’s shooting decided the election and whether the event caused a “flight to safety”
How election markets are becoming a place to watch election probabilities and whether cryptocurrencies “lean right”
Whether rate cuts will occur in July or September and by how much they will cut: 25 bps or 50 bps
How Joe sees the relationship between global liquidity cycles, rate cuts, and the potential rise of Bitcoin
What are the new updates about Ethereum ETFs and their expected launch?
Why Solana Hasn’t Performed Significantly Better Since Trump News
What Market Breadth Indicates About the Current Market Rally and the Impact of Rates on Small Caps
Everyone’s predictions on ETH ETF inflows and how much outflow we’ll see on Grayscale’s ETHE
What’s Next for BTC After German Government Exits Bitcoin and Mt. Gox Giveaways Starting This Week