Markets

Why Crypto Donations Are Rising in 2024

Published

7 months ago

10 July, 2024

In 2021, the nonprofit sector has quietly become the most crypto-friendly arena in the world. Millions of dollars have been donated, and thousands of nonprofits have launched active initiatives to collaborate with crypto philanthropists.

When cryptocurrency 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 with the FTX crash.

Pat Duffy is a founder of The Giving Block, a platform that helps investors donate cryptocurrency to charities, educational institutions, and faith-based nonprofits. The views 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 relief organizations.

If anyone thinks this is just business as usual, they are sadly mistaken. Crypto philanthropy is back in a big way. And what makes this wave unique is the diversity of ways to donate, driven by much more than the price of BTC, ETH, etc. Web3’s current charitable trends were built during the last bull cycle, battle-tested and optimized through the bear market, and are now coming of age as the market approaches a period that should break 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 fad, with DOGE becoming the most donated cryptocurrency in the $30 million Team Seas campaign led by Mr. Beast and Mark Rober. But memecoins remain a very valuable source of charitable funding today. This time, some new memecoins have burst 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 cryptocurrency donations from their community, as they seem to have made charity part of their DNA. They even set a Guinness World Record for Most of the donated pet food within 24 hours.

Meanwhile, BONK was one of the most donated cryptocurrencies when the price took off earlier this year, as their community immediately turned gains into impact. The BONK community is in the process of developing an on-chain program and decentralized application that allows users to donate cryptocurrency to animal-focused charities that partner with The Giving Block. The application manages the donation process, burns a small percentage of BONK tokens, and matches the donations. We are thrilled that a community that has seen an 8,000% increase in their investment in the last twelve months has been inspired to make a long-term commitment to charity.

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 growing awareness for 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 the way traditional nonprofits systematically raise money, as some organizations have begun to embrace quadratic funding.

Ethereum co-founder Vitalik Buterin is known to have co-devised quadratic financing, 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 ways to fund projects of all kinds.

In December 2023, the Gitcoin community quadratic funding round raised 2,971 donations from 1,058 donors at finance six projects that will help advance the lifesaving work of the American Cancer Society.

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

Similarly, more and more humanitarian organizations have been experimenting with distributing aid via stablecoins, from UNHCR to Mercy Corps Ventures. With each test, the impact sector is getting closer to adopting more promising use cases for cryptocurrency and blockchain.

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

Today, bitcoin-based ordinal projects like NodeMonkes are expanding the boundaries of NFT charitable giving. Creators like Jack Butcher have given collectors the tools to understand the positive impact they have with every NFT purchase.

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

Billions of dollars have been donated to nonprofits via cryptocurrency, 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, cryptocurrency fundraising has become a major focus in the nonprofit sector, and as cryptocurrency continues to grow as a major asset class, nonprofits will continue to bet on cryptocurrency donors as a pillar 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 cryptocurrency donor community daunting. Despite the fact that most of the Forbes top 100 nonprofits are raising money in cryptocurrency today, many small and medium-sized nonprofits aren’t even equipped to accept major assets like Bitcoin and Ethereum, let alone things like NFTs and meme coins.

The forward-thinking philanthropists of the Web3 ecosystem will continue to provide incredible opportunities for forward-thinking nonprofits. These efforts will set the stage for some of the most exciting cryptophilanthropy programs in the years to come. But I’m equally excited about the cryptophilanthropists who are slowing down to meet charities where they are.

With more and more nonprofits embracing cryptocurrency, crypto investors who take the time to educate their favorite organizations on the fundamentals of Web3 will play one of the most important roles in driving continued adoption in this space.

Today more than ever there are more nonprofits raising funds through cryptocurrency, but that’s only thanks to the people in the Web3 community who continue to step up and donate and seize the opportunities that draw them to 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 our philanthropic projects, patient with our philanthropic partners, and generous with our philanthropic contributions, crypto will remain one of the fastest-growing methods of giving in the nonprofit sector.

Fuente

Related Topics:Charities Opinion philanthropy

Up Next

Crypto Traders Are In Disbelief As Celestia’s TIA Token Surges 25%

Don't Miss

Bitcoin, Ethereum, Dogecoin in the Green as Whale Transactions Surge: “Crypto Markets Will Be Boring for the Next 2-3 Months”

Financial Block Staff

We are the editorial team of Financial Block, 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 Financial Block, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

Click to comment

Markets

Bitcoin, Ethereum See Red as Markets Crash on Volatility

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin, Ethereum See Red as Markets Crash on Volatility

Bitcoin AND Etherealalong with the rest of the top 10 cryptocurrencies by market cap, appear to be in hibernation on Thursday morning.

At the time of writing, the Bitcoin Price is still below $65,000 and 2.2% lower than it was this time yesterday, according to CoinGecko data. Things are worse for the Ethereum Pricewhich is 3.7% lower than 24 hours ago at $3,185.22. The drop in ETH’s price is identical to that of Lido Staked Ethereum (stETH), a liquid staking token for Ethereum.

In recent days, falling prices have led to the liquidation of derivative contracts worth $225 million, according to Coin glassAnd about half of that, about $100 million, was liquidated in the last 12 hours.

When a trader is liquidated, it means that their position in the market has been forcibly closed by an exchange or brokerage due to a margin call or insufficient collateral. Margin is especially important when it comes to leveraged positions, which allow traders to control a multiple of their deposit, such as opening a $10,000 position with only $1,000 in their account.

Now that Bitcoin has been in the red for three days in a row, there is a chance that the world’s oldest and largest cryptocurrency could sink even further, BRN analyst Valentin Fournier said in a note shared with Decrypt.

“Bitcoin has closed in the red for three days in a row, with one-way trading showing limited resistance from bulls. Ethereum had a slightly positive Monday with strong resistance from bears who have won the last two days,” he wrote. “This momentum could take BTC to the $62,500 resistance or even the $58,000 territories.”

Looking ahead, Fournier said BRN’s strategy will be to “reduce exposure to Bitcoin and Ethereum and find a better entry point after the dip.”

This is despite Federal Reserve Chairman Jerome Powell’s comments yesterday on interest rates being widely regarded as accommodating and indicative of FOMC rate cuts in September.

Singapore-based cryptocurrency trading firm QCP Capital said the rally in stocks, which sent the S&P 500 up 1.6% from Wednesday’s close, was not felt in cryptocurrency markets.

“Cryptocurrencies have seen a broad sell-off overnight and into this morning,” the firm wrote in a trading note. “The market remains poised as traders pay close attention to daily ETH ETF outflows and further supply pressure from Mt Gox and the US government.”

Meanwhile, the other top-ranking coins are showing mixed performance.

Solana (SOL) is down 7.2% since yesterday to $169.13. Things are even worse for its most popular meme coins. In the past 24 hours, the most popular meme coins Dogwifhat (WIF) are down 12% and BONK (BONK) is down 9%, according to CoinGecko data.

Their dog-themed competitor, Ethereum OG Dogecoin (DOGE), the only meme coin in Coingecko’s top 10, is down nearly 4% since yesterday and is currently trading at $0.1205.

XRP (XRP) dropped to $0.608, which is 7% lower than it was at this time yesterday.

Binance’s BNB Coin (BNB) has kept pace with BTC and is currently trading at $571, down 2.4% from yesterday. Toncoin (TON), the native token of The Open Network, is down just 0.4% over the past day.

This leaves the stablecoins USDC (USDC) and Tether (USDT), both of which are stable as they maintain their 1:1 ratio with the US dollar.

Fuente

Markets

XRP Market Activity Drops During Ripple-SEC Talks: Price Steady

Published

6 months ago

1 August, 2024

Financial Block Staff

Ripple (XRP) Market Witnesses Calm During SEC-Ripple Meeting

The Securities and Exchange Commission (SEC) will hold another closed-door meeting with Ripple on Thursday, as the market hopes for a possible resolution to the legal battle between the two entities.

However, the cryptocurrency market remains relatively bearish, with the price and trading volume of XRP down in the last 24 hours.

Ripple holders take no risk

At press time, XRP is trading at $0.60. The altcoin’s price has dropped 6% over the past 24 hours. During that time, trading volume was $27 million, down 27%.

The SEC met before with the digital payment company on July 25. While the outcome of that meeting remains unknown, the Sunshine Act Notice for Thursday’s meeting includes one additional topic of discussion from the July 25 closed meeting: the instituting and resolving injunctive relief. That has market participants speculating whether a settlement is imminent.

In an exclusive interview with BeinCrypto, Ryan Lee, Lead Analyst at Bitget Research, noted that:

“This meeting will discuss possible resolution options for the Ripple Lawsuit. The founder of Ripple Labs said that a legal settlement could be announced soon. If an official settlement plan is released, it could positively impact XRP’s price movement.”

However, an assessment of XRP’s price movements on a 4-hour chart shows a spike in bearish bias as the market awaits the outcome of this crucial meeting. Its Moving Average Convergence/Divergence (MACD) indicator readings show that its MACD line (blue) has crossed below its signal line (orange).

XRP 4 Hours Analysis. Source: Trading View

Traders use this indicator to gauge price trends, momentum, and potential buying and selling opportunities in the market. When an asset’s MACD is set this way, it is a bearish signal that suggests selling activity is outweighing buying momentum.

Additionally, the altcoin relative strength index (RSI), at 46.08, is currently below its neutral 50 line and in a downtrend. This indicator measures overbought and oversold market conditions for an asset.

To know more: How to Buy XRP and Everything You Need to Know

xrp rsi XRP 4 Hours Analysis. Source: Trading View

At 43.83 at the time of writing, XRP’s RSI suggests a growing preference among the market participants for tok in distribution.

XRP Price Prediction: Derivatives Traders Exit Market

The XRP derivatives market has also seen a decline in trading activity over the past 24 hours. According to Coinglass, derivatives trading volume has plummeted 18% and open interest has dropped 10% during that period.

Open interest refers to the total number of outstanding derivative contracts, such as options or futurethat have not yet been resolved. When it drops, traders close their positions without opening new ones. This is a bearish signal that reflects a lack of confidence in any potential positive price movement.

According to Lee, the outcome of the meeting with the SEC “would have a significant impact on the price movement of the token.” If the outcome is favorable, the price of the token could rise towards $0.75 in August.

To know more: Ripple (XRP) Price Prediction 2024/2025/2030

XRP Price Prediction XRP 4 Hours Analysis. Source: Trading View

On the other hand, if no favorable resolutions are reached, the price could plummet to $0.50.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto strives to provide accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAND Disclaimers They have been updated.

Fuente

Markets

Bitcoin’s Dominance Hits Three-Year High, But Analysts Say Altcoins Are Ready to Rebound

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin's Dominance Hits Three-Year High, But Analysts Say Altcoins Are Ready to Rebound

Bitcoin is now the dominant force in the cryptocurrency market, surpassing 53% of the total cryptocurrency market, a stronger share than it has been in the past three years.

Bitcoin’s market cap now stands at $1.27 trillion, second according to CoinGecko data. In contrast, the total cryptocurrency market cap is $2.43 trillion, with Ethereum occupying 15.9% of the market, worth $389 billion.

Bitcoin’s rise to dominance this year is unusual, as altcoins typically do better than Bitcoin in a bull market. While meme coins made a strong comeback during Bitcoin’s rally to all-time highs earlier this year, the so-called “wealth effect” It has not been appreciated as much by mid-range coins, such as Ethereum and Cardano.

“ETF flows fundamentally alter market dynamics,” he wrote Meltem Demirors, former chief strategy officer at CoinShares, tweeted Wednesday: “BTC gains no longer translate to alts and the longer tail of crypto.”

Bitcoin’s takeover has continued even as the market cap of Tether (USDT) continues to grow, the world’s largest stablecoin and the third-largest cryptocurrency after BTC and ETH. Stablecoins are backed by fiat currencies and are excluded from some measures of Bitcoin dominance due to fundamentally different value models.

The surge continued to pace even after the launch of Ethereum spot ETFs last week, which ironically culminated in a news sell-off event, and net outflows from new investment products since they were launched. This went against the predictions of K33 Search so far, which predicted that ETFs would catalyze ETH’s growth over the next five months.

Despite the poorer performance of the alts, there is reason to believe that they are ready to bounce back very soon.

CryptoQuant CEO Ki Young Ju said Tuesday that whales are “preparing for the next altcoin rally,” as limit buy orders for assets other than BTC and ETH are on the rise.

The executive shared a chart showing how the “cumulative difference between purchase volume and sales volume” has increased in recent months.

“The indicator measures the difference between buy and sell orders over a year,” CryptoQuant told Decrypt. A buy/sell order is a pre-set request to buy or sell a cryptocurrency if it hits a certain price level, which creates resistance and support levels.

“If the trend is up, it means that more people are placing buy orders, showing strong interest in buying,” CryptoQuant said.

By Ryan-Ozawa.

Fuente

Markets

XRP and SOL Retrace as BTC Price Drops to 2-Week Lows (Market Watch)

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin Returns Toward $60K, XRP Defy Negative Sentiment (Market Watch)

After Monday’s crash, in which BTC fell by several thousand dollars, the scenario has repeated itself once again in the last 12 hours, with the asset falling to a 2-week low of $63,300.

Alt coins followed suit, with most of the market in the red today. SOL and XRP lead the way from the higher cap alts.

BTC Drops To $63.3K

After a violent Thursday last week, when BTC crashed to $63,400, the asset went on the offensive over the weekend and surged above $69,000 on Saturday, as the community prepared for Donald Trump’s appearance at the 2024 Bitcoin Conference in Nashville.

His speech was followed by more volatility before the cryptocurrency settled around $67,500 on Sunday. Monday started off rather optimistically for the bulls as bitcoin hit a 7-week high of $70,000.

However, he failed to maintain his run and conquer that level decisively. On the contrary, he was rejected bad and dropped to $66,400 by the end of Monday. Tuesday and Wednesday were less eventful as BTC remained still around $66,500.

The last 12 hours or so have brought another crash. Bears have pushed the leading digital asset down hard, which has fallen to a 2-week low of $63,300 (on Bitstamp), leaving over $200 million in liquidations.

Despite the current rebound to $64,500, BTC’s market cap has fallen to $1.270 trillion, but its dominance over alts is recovering and has reached 52.6%.

Bitcoin/Price/Chart 01.08.2024. Source: TradingView

The Alts are back in red

Ripple’s native token has been at the forefront of the market challenge in recent days as pumped up to a multi-month high of over $0.66. However, its run was also interrupted and XPR fell by more than 6% in the last day to $0.6.

The other big loser among the larger-cap alternatives is SOL, which has lost 8% of its value and is now struggling to get below $170.

The rest of this altcoin cohort is also in the red, with ETH, DOGE, BNB, AVAX, ADA, SHIB, and LINK all seeing drops between 2 and 5%.

The total cryptocurrency market cap lost another $70 billion overnight, falling below $2.4 trillion today on CG.

Cryptocurrency Market Overview. Source: QuantifyCrypto SPECIAL OFFER (sponsored)
Binance $600 Free (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive $600 welcome offer on Binance (full details).

LIMITED OFFER 2024 on BYDFi Exchange: Up to $2,888 Welcome Reward, use this link to register and open a 100 USDT-M position for free!

Disclaimer: The information found on CryptoPotato is that of the authors cited. It does not represent CryptoPotato’s views on the advisability of buying, selling, or holding any investment. We recommend that you conduct your own research before making any investment decisions. Use the information provided at your own risk. See Disclaimer for more information.

Cryptocurrency Charts by TradingView.

Fuente