These crypto firms are joining the battle against COVID-19. Will this move feature the advantages of digital currencies and build up the business?
Everywhere throughout the world, specialists, attendants and clinical assets are stressed as the battle against the coronavirus proceeds. Accordingly, numerous beneficent associations and humanitarians from different businesses have approached to offer their help.
In the digital currency industry, organizations, for example, BitMEX, Binance and the Stellar Foundation have been standing out as truly newsworthy without fail for being at the cutting edge trying to make sizable gifts to COVID-19 alleviation reserves. Here is a glance at the absolute greatest and most amazing gifts from crypto-related organizations.
Toward the start of April, the Stellar Development Foundation declared the dispatch of the XLM-gift coordinating system controlled by Stellar-based Lumentrhopy, a pledge drive that enables magnanimous associations to acknowledge Stellar Lumens.
One of the philanthropies, with which the SDF plans to coordinate gifts, is with the Tor Project. Reports demonstrated that SDF is set to coordinate gifts to a sum of $79,300, which means about 1.9 million XLM tokens. The Stellar Development Fund will likewise coordinate gifts to Unicef France; Heifer International, an association battling hunger through contribution support for little scope ranchers; and Watsi, a philanthropic that smoothes out medicinal services financing through structure innovation. In a discussion with Cointelegraph, Lauren Thorbjornsen, the chief of correspondences and advertising at SDF, stated:
“The Stellar Development Foundation is fortunate to have XLM reserves and an active community. Combining the power of those two things, we’ve been able to work together to help organizations (UNICEF, The Tor Project, Heifer International, Watsi, Freedom of the Press and Women Who Code) that are creating vital change in the world.”
She also mentioned that SDF has “worked with Stellar network partner, Lumenthropy, to give back to this group of charities,” which they believe are relevant to some of the pressing challenges given the unfolding crisis.
The Giving Block
On March 23, The Giving Block, a company that helps nonprofit charitable organizations accept crypto donations, announced the start of the #cryptoCOVID19 alliance. The initiative wants to unite the crypto community in the fight against the coronavirus. Gitcoin, one of the partners in the campaign, kicked off the donation by matching $100,000 in Ether (ETH) on the Dai platform. The Giving Block has also partnered with the likes of Brave, Gemini and Axiom Finance to raise $500,000 in crypto donations.
In response to a question about how the company ensures transparency throughout the process, Alex Wilson, the co-founder of The Giving Block, responded by saying:
“We vet all of the nonprofits we work with to make sure they are legitimate and putting the funds to good use. All the crypto donations (BTC, ETH, LTC, BCH, ZEC, GUSD) all go directly to the nonprofit’s wallets and can be converted to USD so they can use the funds on the front lines immediately.”
He also added that “all registered nonprofits must report their cryptocurrency donations and include it in their annual filings.”
In a commitment to the global response by organizations and individuals concerning the COVID-19 pandemic, Ripple Labs announced its donation of $200,000 on March 25. The company has donated $100,000 to the Tipping Point Community, a nonprofit organization based in San Francisco, which later raised the total donation to $1.1 million for victims of the coronavirus in the U.S.
Besides, Ripple Lab’s donations will also go to the Silicon Valley Community Foundation, which is a dedicated regional fund in response to the coronavirus outbreak in Silicon Valley. While dwelling on the impact and transparency of donations during this period, Cointelegraph spoke to a Ripple spokesperson who said that: “Ripple is working with local Bay Area partners who are on the frontlines to help our communities who have been heavily impacted by COVID-19.” The spokesperson continued:
“Ripple and its co-founder, Chris Larsen, have together donated $5 million to local food banks and meal service providers to combat food scarcity, and $1.1 million to the COVID-19 emergency funds of Tipping Point, an organization leading the local crisis response.”
BitMEX, the derivatives exchange backed by Arthur Hayes, recently announced that it is donating a total of $2.5 million in support of the fight against the coronavirus. In an announcement, BitMEX stated that the funds will be directed to four organizations at the forefront of the fight against the pandemic. These organizations include a biosecurity program called the Nuclear Threat Initiative, the Gates Philanthropy Partners, Our World in Data and OpenMinded.
In a statement, Hayes said that the company is “committed to thoughtful grant-making and ensuring that” its “actions during the COVID-19 crisis can make the biggest impact now and in the future.”
Golem, a computing network, is another contributor from the crypto sector to join the fight against COVID-19 through the Folding@Homes project. Golem and blockchain platform Tezos have set aside hundreds of Tezos coins (XTZ) that will be given to the biggest F@H donor by the end of April.
Cointelegraph reported earlier that there were around 20 teams from Tezos that had donated different resources to the F@H initiative by March 12. Another major contributor to the initiative is Ether miner CoreWeave, which has donated computational power of about 6,000 GPUs. Nvidia has also contributed toward the project by urging gamers to donate unutilized GPU computing resources.
Notably, blockchain company Bitfury announced on March 31 that the Amsterdam-based firm had dedicated some of its GPU computer nodes to the “Folding@Home” research project to help organizations look into the coronavirus.
In a slightly different use of computing power, blockchain company Real Items announced that it would be working with microfiber manufacturer Tricol Group’s factories in Seattle and China to track the authenticity of their production of KN95 masks using blockchain technology.
The United States Food and Drug Administration had recently approved the use of KN95 masks for health care workers, which are manufactured in accordance with Chinese rather than American standards, as N95 masks are becoming increasingly hard to find.
On April 7, Jack Dorsey, the CEO of Twitter and the founder of Square payment solution, announced that he had moved $1 billion to his newly started company called Start Small LLC, which currently aims to fight COVID-19. Notably, the fund is around 28% of his wealth. Dorsey promised that the funds will be operated transparently with a #startsmall tracker.
Dorsey is also a well-known supporter of Bitcoin (BTC). Addressing the U.S. government, he proposed that they unite together to use existing technology such as Square’s Cash App to seamlessly help people during the pandemic — even the unbanked.
As more blockchain and crypto-related companies join the fight, it is becoming evident that blockchain technology can be used beyond solving the challenges of the financial world. According to some, such moments like these will push the dialogue forward on the subject of using cryptocurrencies daily.
For example, while Thorbjornsen believes that the dominance of paper cash is still strong, she agreed that the current pandemic will further increase talks about the use of blockchain technology and cryptocurrencies. According to Wilson, the pandemic has shown that the crypto community can collaborate despite various disagreements:
“COVID-19 has shown that the cryptocurrency community is willing to put differences aside and come together to support those in need during difficult times.”