Crypto philanthropy triumphs despite the adverse crypto winter

In her daughter’s biography, Marie Curie is quoted as saying, “Life is not easy for any of us. But what of that? We must have perseverance and above all confidence in ourselves. We must believe that we are gifted for something, and that this thing, at whatever cost, must be attained.”

Despite facing discrimination due to her gender and Polish heritage, as well as enduring significant personal losses and the horrors of war, Marie Curie embraced every challenge as an opportunity to serve others.

To this day, Marie remains the first woman to win a Nobel Prize, the first person to win two Nobel Prizes, and the only person to win Nobel Prizes in two different natural sciences. Furthermore, the Marie Curie Cancer Charity continues her legacy by providing specialist care for the terminally ill.

Marie Curie’s achievements are testimony that triumph in the face of adversity is possible. And it would certainly seem (according to The Giving Block’s latest report) crypto philanthropy has taken a leaf out of Marie Curie’s playbook to defy the harsh and harrowing crypto winter.

Brace yourself, although I’ll keep it as short as possible, this next part doesn’t make for easy reading.

The crypto winter

In November 2021, Bitcoin rallied near a record high of $68,000 with analysts predicting even further rises in the coming weeks. How wrong they were. Because if they were to look outside the metaphorical window at that point in time, the first few snowflakes of winter were gently starting to fall.
 
Come December, inflation was soaring and news of rate rises to cool the economy meant Bitcoin fell 19% as the stock market sell-offs began. Despite many thinking it was the hedge against inflation, cryptocurrencies too fluctuated with macroeconomic factors.
 
While Bitcoin was slowly declining, both the stablecoin, TerraUSD, and Luna crypto network collapsed – plummeting the Luna coin from $119 to less than a cent before it was officially delisted. TerraUSD crashing was the catalyst that took down crypto lender Three Arrows Capital. After pausing withdrawals in June, Celsius (another crypto lender) filed for bankruptcy in July. BlockFi (yes, another crypto lender) was then rescued by a $400m bailout by FTX.
 
And then the unimaginable happened. BlockFi’s knight in shining armour, the $32bn FTX exchange, imploded (taking even more lenders with it). FTX’s CEO, Sam Bankman-Fried (SBF), went from being Forbes’ October 2021 cover star, to being arrested on Dec 12 2022. The very same day he was subsequently charged with multiple wire and securities frauds, money laundering, and ‘swindled‘ $8bn of customer’s money (which could result in 115 years imprisonment) Bitcoin hit $17,000.
 

But… it didn’t stop the crypto philanthropists

Because, while the crypto market was seemingly doomed, crypto philanthropy unequivocally boomed, as you’re about to find out.
 
The Giving Block, a platform to help nonprofits rapidly accelerate their crypto adoption, released its 2023 annual report (Crypto Philanthropy Data, Trends & Predictions) which shows how “crypto generosity has matured to where it can withstand market volatility.”
 
In fact, The Giving Block saw one of the best years in the platform’s five-year history. This indeed bodes extremely well for the future – as the co-founders’ intro candidly states:
 
“If this is what a bad year looks like, then we look forward to the years to come.”

Download the report at: www.thegivingblock.com/annual-report

Let’s get into some of the impressive numbers.

In what was one of the most challenging times in crypto’s fourteen-year history, The Giving Block platform not only enjoyed their second-best giving year, exceeding $125m in all-time giving, they also saw the number of organisations they serve almost double.
 
At $6,295, the average crypto donation was nearly 31 times larger than the average online gift size in the nonprofit sector ($204).
 
Donations in USDC overtook ETH and BTC for the first time in the platform’s 5-year history (USDC = $22.7m. ETH = $12.3m. BTC = $8.8m)
 
49 of Forbes’ top 100 charities now accept crypto donations. Which, considering only 12 accepted crypto donations in 2019, is an impressive adoption rate.
 
The most popular causes were those focusing on Ukraine humanitarian aid, mental health, children and youth, disaster and conflict relief, animal rescue and rehabilitation, and providing food and water.
 
While some naysayers may point to the tax benefits for making crypto donations, Fidelity confirms the fact that crypto donors remain far more generous than stock donors who have exactly the same tax incentive.
 
With 79% of crypto donations coming from donors who decided to share their details, the report also confirms the transparency of blockchain is of significant benefit to the charities: “When donations are received, anonymous or not, the transaction is vetted to make sure it is not coming from an illicit source. We do this by using Chainalysis where we can trace the source of a donation to give nonprofits confidence that they are only accepting “clean” funds”.
 

 
Together we can change the narrative

From traditional crypto donations to NFT initiatives, the report’s findings demonstrate how crypto philanthropy has already become a modern and lucrative route to secure both vital revenue streams and engage new and existing donors. Plus, its growth forecasts predict crypto philanthropy will have generated more than $10bn by 2032.
 
But while the numbers look good, we are under no illusion that as the crypto winter thaws, the remaining scorched earth may leave many concerned. But as The Giving Block’s co-founders rightly point out:
 
“…after what we’ve seen with the FTX fallout, mainstream crypto adoption hinges on good individuals and companies partnering with trusted nonprofits to change the narrative and remind the world that crypto is a force for good.”
 
And if we may, after reading this article, we simply ask you to do one thing… action Marie Curie’s words:

“Nothing in life is to be feared; it is only to be understood.”

So please do follow us to stay up to date on the vast opportunities the world of Crypto, Web3, Blockchain, and NFTs can bring to charities like yours.
 
 
 
Download The Giving Block’s full report here