Binance Criticized for Donating BNB Tokens to Earthquake Victims
Binance, a leading digital currency exchange, has faced backlash for its decision to donate its BNB tokens to individuals influenced by the recent earthquake in Morocco. Critics argue that Binance is using the devastation caused by the earthquake as a way to improve its public image.
Morocco’s Earthquake and Binance’s Response
The earthquake in Morocco, measuring 6.8 magnitude, has resulted in over 2,800 deaths and impacted more than 300,000 people. Entire villages in the Atlas Mountains have been devastated. Binance, along with other well-wishers, has pledged financial assistance to those influenced by the disaster.
In a statement, Binance announced that it would airdrop BNB tokens worth $100 to users in the Marrakesh-Safi Province who completed the proof of address (POA) process before September 9th. Users who have not completed the POA will receive $25 worth of BNB, while active users in less influenced areas will receive $10 worth of BNB. This initiative will transfer nearly $3 Million worth of BNB to Binance users in Morocco.
Criticism of Cryptocurrency Donations
Nonetheless, Iain Overton, the executive director of Action on Armed Violence, criticized Binance for prioritizing its commercial interests over immediate assistance for earthquake victims. Overton claimed that those influenced by the catastrophe are not interested in digital currencies and viewed Binance’s actions as cynical.
The International Federation of Red Cross and Red Crescent Societies echoed similar sentiments, emphasizing that influenced individuals require immediate assistance rather than cryptocurrency donations. Regardless of this criticism, cryptocurrency donations have been credited with helping Ukraine during its conflict with Russia.
Previous Instances of Cryptocurrency Donations
During the conflict in Ukraine, numerous cryptocurrency and blockchain platforms made donations. Gavin Wood, the co- founder of Polkadot (DOT), donated digital tokens worth over $5 Million after the Ukrainian Government accepted his challenge. In addition, Justin Sun, the founder of Tron, pledged to donate $1 Million if the Ukrainian Government provided a TRX address. The Government in the end accepted donations in 70 different digital assets.
Binance’s Additional Efforts
Along with the BNB airdrop, Binance has likewise launched a public donation address for individuals to contribute. Donations can be made in BNB, BTC, Ethereum (ETH), USDC, USDT, or BUSD.
Hot Take: Criticism of Binance’s Motives
Binance’s decision to donate BNB tokens to earthquake victims in Morocco has received criticism for potentially leveraging a humanitarian crisis for its own benefit. Critics argue that those influenced by disasters prioritize immediate assistance rather than digital currencies. Although while cryptocurrency donations have been successful in the past, it is essential for platforms like Binance to secure their actions are motivated by genuine concern and not just marketing strategies.
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