The Bull Case for Crypto and Philanthropy: plus some other feel-good stuff
How crypto and NFTs are having a positive impact on giving! 🐶 Uplifting!
joshyote ✌️👽
November 10, 2022
gm ✌️
Don't worry, we're not gonna do what you all think we're gonna do, which is, you know, spend a whole newsletter TALKING ABOUT FTX!
But for reals — you've probably already read enough about the situation and from people way smarter than me.
We're pretty bummed out about the deal and feel for everyone in the community that has been negatively impacted. This whole thing feels like a big step backward for web3.
That said, we here at icy.tools are incorrigible brightsiders. 🌞
So this week, we're going to take a look at how crypto and web3 are changing philanthropy (and def not the SBF way).
Oh yeah, we also shipped some awesome new features this week:
Check out our blog post for more on these new features and a couple of hints about the other exciting new features we have in the pipeline 😉
and spend a whole newsletter talking about FTX and SBF (okay, last time)
This week's top collections by volume:
Art Blocks is still running the NFT market by volume. Otherdeed saw a bit of movement this week too, along with KPR. Friendship Bracelets could almost be considered part of Art Blocks, as you needed to be an Art Blocks holder to be eligible for the free mint. If you were an Art Blocks holder before 10/26, you can still mint your free Friendship Bracelet until early 2023 — floor is currently 0.175 ETH
The Bull Case for Crypto and Philanthropy: plus some other feel-good stuff
Let me take you on a journey back to May 2021...
Covid-19 is surging, but so is crypto — reaching ATH at the time.
One man supreme blockchain deity decides to donate $1.5 billion worth of crypto to charitable causes including:
50 trillion SHIB (Shiba Inu) to India's COVID-Crypto Relief Fund — worth around $1.14 billion at the time
ETH and Dogelon Mars (ELON) worth $336 million to Methuselah Foundation (tissue engineering and regenerative medicine therapies)
13,000 ETH to Givewell, a nonprofit organization that works to curate the best charities around the world
If you didn't already love Vitalik, you better now!
People generally hear about all the evil shit people do with crypto — fueling terrorists, money laundering, drugs, etc.
BUT WHAT ABOUT THE PEACE, LOVE, AND BEAUTY, MAN?! 🕊✌️💜
Let's dig a little deeper into crypto and philanthropy.
Crypto has completely changed the way we give.
Crypto philanthropy differs significantly from traditional ways of giving. These differences are changing donor demographics, funding models and even the reasons for giving.
We don't have the data for 2022 yet, but 2021 was the largest year for charitable crypto donations, by a long shot.
Fidelity Charitable received around $331 million in cryptos compared to $28 million in 2020. In its annual report, Giving Block, a crypto donation platform, reported $69 million in total donation volume last year, a massive 1,558% spike from 2020.
The ability to easily and instantly send funds to causes will have an enduring impact on the future of philanthropy.
Already, we are seeing this in action.
The ability to instantly send funds for Covid relief to areas in need.
We also saw a huge response to Ukraine's need that was facilitated by crypto and blockchain technology.
Benefits of crypto-backed philanthropy:
Send aid instantly and globally — especially valuable to people without reliable banking systems
Minimal fees compared to traditional wire transfers
Tax breaks for holders. Instead of having to eat taxes when converting to fiat, holders can't send a long-term appreciated asset (held for over a year, usually) directly and receive tax benefits.
Privacy — Donate anonymously. Some people actually don't want credit when they donate and prefer to stay anonymous. This could be for a number of reasons, including safety.
And don't for a second think we'd forget to mention NFTs and philanthropy.
NFTs and Philanthropy
see.
There have been numerous, super successful fundraising and charitable events tied directly to NFTs.
This list is from the Givingblock (yeah, it's from last year, but it gives you an idea)
My guess is that we are just getting started with NFTs and philanthropy. The unique combination of art, community, and some monetary value makes NFTs a super ripe environment for any charitable org to get involved with.
For more successful NFT philanthropy projects and some additional use cases, make sure to check out this article below from NFT Now:
Have you been scoping out the icy.tools Learn section?
We have some stellar guides and resources for learning about all things NFTs. New guides are added weekly.
Pretty sweet, we know.
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