Coinbase is winding down the GiveCrypto initiative, citing its failure to create a lasting impact.
In a blog post on Dec. 15, Coinbase said its non-profit initiative founded by the exchange’s head Brian Armstrong was “unable to create lasting change purely through unconditional cash transfers.” According to the exchange’s statement, the initiative participants “returned to the same baseline” after the cessation of payments, prompting a reevaluation of the initiative’s approach.
“Unfortunately, we were unable to create a lasting impact with recipients, who returned to the same baseline after payment ceased.”
Coinbase
In light of this, all remaining GiveCrypto funds will be redirected to two organizations: Brink and GiveDirectly. Brink is also a non-profit initiative, focused on strengthening Bitcoin’s software and protocol, while GiveDirectly is positioned to ensure that crypto donations reach those in need, providing sustained benefits.
Coinbase expressed gratitude to all supporters of GiveCrypto and acknowledged their role in the journey. The company looks forward to redirecting its philanthropic efforts, aiming to continue contributing to the goal of increasing economic freedom worldwide. The decision marks a strategic shift in Coinbase’s charitable initiatives, reflecting the evolving landscape of crypto-based philanthropy.
Established in 2018, GiveCrypto accepted and distributed cryptocurrencies in a bid “to create impact.” According to a Coinbase spokesperson, the initiative successfully distributed over $1 million in aid in 2022, benefiting more than 1,000 people.
Financial inequality
Unlike traditional gifting, cryptocurrency donations are encountering both challenges and criticism within the realm of charitable initiatives, shedding light on the complexities of utilizing digital assets for philanthropy.
For instance, in September 2023, crypto exchange Binance came under scrutiny for its post-earthquake aid effort in Morocco, where a devastating earthquake killed nearly 3,000 people. Binance pledged up to $3 million in its Binance Coin (BNB) token to 70,000 existing customers, drawing criticism for what some describe as a marketing ploy to enhance its image.
Humanitarian relief experts questioned Binance’s choice to donate tokens instead of readily usable cash or essential items like food and blankets. Concerns also arise over the exclusivity of aid to existing Binance customers rather than all victims of the disaster.