Coinbase Ends Givecrypto Initiative
Crypto exchange Coinbase has announced that it is winding down its Givecrypto initiative, a nonprofit organization created by CEO Brian Armstrong to provide cryptocurrency to individuals in need. The exchange stated that despite the positive impact of the program, it was unable to achieve lasting change solely through unconditional cash transfers. Givecrypto was one of Coinbase’s charitable programs aimed at increasing economic freedom globally. After careful consideration, Coinbase has decided to take a new direction. The initiative was introduced by Armstrong in 2018, with the goal of financially empowering people in emerging markets. However, Coinbase’s philanthropic efforts have faced criticism and disappointment in recent years.
Limited Lasting Impact
Givecrypto has distributed cryptocurrency to thousands of individuals in need, leading to short-term improvements in their outcomes. The initiative has also demonstrated the ease of sending small amounts of money across borders directly to the intended recipients without intermediaries. However, the program failed to create a lasting impact, as recipients returned to their previous situation after the payments stopped. As a result, Coinbase has decided to allocate the remaining Givecrypto funds to Brink and Givedirectly. Brink focuses on strengthening the Bitcoin software and protocol, while Givedirectly is better equipped to ensure crypto donations reach those in need and generate long-term benefits.
Hot Take: Coinbase Shifts Focus in Philanthropy
Coinbase’s decision to wind down its Givecrypto initiative reflects the challenges faced by the company in creating lasting change through unconditional cash transfers alone. Despite the positive impact on short-term outcomes, the program did not lead to sustained benefits for the recipients. Coinbase will now redirect its philanthropic efforts by donating the remaining funds to organizations that can better ensure the effective distribution and long-term impact of crypto donations. This shift represents Coinbase’s commitment to maximizing the potential of cryptocurrency for positive change and creating lasting economic empowerment.
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