Coinbase, a well-known cryptocurrency exchange, has announced the termination of its Givecrypto initiative. This project, founded by Coinbase CEO Brian Armstrong, aimed to provide cryptocurrencies to those in need. Despite successes in short-term aid, Coinbase admitted that it failed to achieve lasting change through unconditional financial transfers.
In the world of cryptocurrencies, which is still a novelty and mystery to many, Coinbase is one of the more recognizable brands. This cryptocurrency exchange recently decided to end its charitable project Givecrypto, which has been of interest to both blockchain technology enthusiasts and those involved in humanitarian aid from the very beginning.
The Givecrypto project, founded by Brian Armstrong in 2018, had an ambitious goal: to provide cryptocurrencies to people in difficult financial situations, particularly in developing countries and those affected by financial crises. This idea had two main advantages: first, enabling quick and direct international transfers; second, providing financial support without the need for traditional financial institutions.
Over the years, Givecrypto actually provided support to thousands, demonstrating the short-term positive effects of such assistance. Introducing cryptocurrencies as a form of financial support was innovative and showcased the potential of this technology in cross-border money transfers.
However, despite these initial successes, Coinbase admitted that the project did not achieve its expected goal – a lasting change in the lives of aid recipients. It turned out that after the cessation of transfers, the financial situation of beneficiaries returned to the initial state, which undermined the idea of the long-term impact of this type of support.
Faced with these challenges, Coinbase decided to end the Givecrypto project, transferring the remaining funds to two organizations: Brink and Givedirectly. Brink focuses on strengthening Bitcoin software and protocol, while Givedirectly has more experience in ensuring that cryptocurrency donations reach those most in need and bring long-term benefits.
This decision by Coinbase sheds light on one of the key issues in the world of cryptocurrencies: the challenge of creating lasting change in society through modern financial technologies. The story of Givecrypto becomes an important lesson about the limitations and potential of cryptocurrencies in the context of humanitarian aid and corporate social responsibility.
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