Connect with us

Projects

Using Cryptocurrencies to Spread Holiday Cheer through Charitable Giving

This holiday season, charitable crypto campaigns strive to give back by showcasing the effectiveness of cryptocurrency and NFT donations.

Published

on

#nft #nfthours #charity #holiday #season

The holidays are an ideal time to give back, and the rise of cryptocurrency has opened up even more possibilities for charity endeavors. This was emphasized at Giving Tuesday 2021, the Tuesday after Thanksgiving when the nonprofit fundraising portal The Giving Block raised almost $2.4 million in cryptocurrencies.

Some in the industry anticipate that crypto donations will continue to rise as crypto philanthropy becomes a new subsector of the cryptocurrency economy. Alex Wilson, the co-founder of The Giving Block, said that the group collected roughly $4 million in crypto donations last year and expected to receive over $100 million this year.

According to Wilson, this surge is partly attributable to the fact that donating crypto is more tax-efficient than donating money. “Anyone who donates by Dec. 31 will be eligible for a deduction for the tax year 2021. So this is a fantastic approach to counterbalance some of your advantages.” According to Wilson, the Giving Block presently accepts crypto donations from over 1,000 NGOs, including St. Jude, Save the Children, and United Way. “We have a lot of agreements going live next year, and we expect our growth to pick up. We expect to process approximately $1 billion in donations and work with over 6,000 NGOs next year.”

For the holidays, there are several cryptocurrency giving campaigns

While a handful of NGOs have begun to accept cryptocurrency donations, it’s worth noting that cryptocurrency philanthropy initiatives are being launched this Christmas season.

For example, Upbring Innovation Labs, a Texas-based nonprofit dedicated to advancing technology in the nonprofit sector, created the Give Big TX Crypto Fund in early December. According to Ryan Park, Upbring’s vice president of innovation, the fund is a collaborative cryptocurrency effort including twelve Texas-based nonprofits:

“You can think of this as a ‘cause fund.’ The cause here is to make Texas a better place to live. This is also about showing nonprofits that they can adopt new Web 3.0 technologies to advance. The larger goal overall is to see Texas emerge as a leader in crypto philanthropy.”

According to Park, the Give Big TX Crypto campaign collaborates with Austin Pets Alive, Big Brothers Big Sisters Lonestar, Catholic Charities of Central Texas, and eight other groups. He also mentioned that the Texas Blockchain Council, a 501(c)(6) organization, is a part of this project because of the group’s work in developing blockchain across many businesses in Texas.

According to Kelsey Driscoll, senior innovation program strategist at Upbring, the campaign will accept over 40 different types of cryptocurrency for donations through Dec. 31, all of which will be processed by The Giving Block. “When donations are made, The Giving Block converts them to US dollars automatically, so accepting crypto has been just as easy, if not easier, than receiving fiat donations,” she explained. Driscoll also mentioned that the r/Bitcoin subreddit group would match Bitcoin (BTC) donations given to any of The Giving Block’s recognized charities.

This month, Pawthereum, a decentralized community-run enterprise that supports animal shelters, announced the launch of a philanthropic cryptocurrency campaign. Pawthereum’s 12 Days of Crypto Giving campaign, according to John Weathers, allows crypto donations to be made for specific programs that support animals in need. The Pawthereum project is a fork of the Grumpy Cat Coin joke cryptocurrency, which collected $70,000 in crypto money for the Sterling Animal Shelter in Massachusetts.

Pawthereum has raised $25,000 for Muttville Senior Dog Rescue, a San Francisco-based animal shelter that cares for dogs with special needs, thanks to crypto donations. According to Weathers, since the campaign began on Dec. 14, close to $400,000 in cryptocurrency has been given.

This year, NFTs are also being used to raise funds. Given that the market for NFTs is predicted to expand to $17.7 billion by the end of 2021, this industry is hosting one of the season’s major crypto charity events. This public auction, known as Right-Click, Give!, is hosted on the NFT platform Opensea. All proceeds from the auction will go to Blankets of Hope, a nonprofit that gives warm blankets to the needy and teaches kindness to children in schools.

As an ardent NFT collector, Mike Fiorito, co-founder of Blankets of Hope, is well aware of how welcoming the NFT community is as a whole. As a result, he anticipates the emergence of more NFT-focused humanitarian projects. “There are a lot of generous folks in the NFT field who are generating fortunes — big and small — and want to give back,” he said.

Park also mentioned that the Give Big TX Crypto campaign allows NFT artists to collaborate directly with NGOs to give money from nonfungible token minting. “Many NFT drop artists want to collaborate with NGOs, and this is an opportunity to do so. As a result, two NFT initiatives have agreed to donate the proceeds from their mints to our cause.”

Will charity cryptocurrency campaigns become popular?

Although there are presently only a few philanthropic cryptocurrency campaigns, the advantages of cryptocurrency donations may lead to broader usage in the future.

While crypto-assets donated to a registered nonprofit in the United States are exempt from capital gains taxes, there are other technological advantages. When it comes to crypto donations versus money, for example, Nawzad Amiri, a community leader at Pawthereum, remarked that the transparency afforded by a blockchain network, as well as the speed of transactions, is amazing.

Furthermore, according to data from The Giving Block, crypto donors may be willing to donate more to charity, with the average bitcoin donation size on The Giving Block being $11,000. According to Giving USA, the average charity donation for Americans in 2020 will be $737.

While the advantages may be obvious, education appears to be the most significant barrier to adoption. Even though Texas is becoming one of America’s greatest crypto capitals thanks to its welcoming attitude toward blockchain and mining power, Park said it has been challenging to recruit Texas NGOs to the Give Big TX Crypto campaign:

“We reached out to about 60 nonprofits and are partnering with 12 total. It seems like this would have been a shoo-in but there is still a long way to go in terms of educating the world on the potential of crypto philanthropy.”

Another issue worth highlighting is that, while NFTs may appear to be significant donation assets, tax deductions are questionable. Fiorito said he’s still figuring out whether donating NFTs is a tax-deductible event. “Because we are so early in the NFT space, this is a hazy region,” he said. Because of this ambiguity, the Right-Click, Give! Auction is now accepting cryptocurrency donations via The Giving Block.

Crypto philanthropy has opened up new doors of opportunity for youth ready to give back despite the challenges. For example, Park pointed out that many of the NGOs involved in the Give Big TX Crypto campaign had a donor base that was over 70 years old. The average age of crypto users is 38 years old, according to data from The Giving Block, as Wilson pointed out:

“The people donating here are individuals that live and breathe Web 3.0 or that have held crypto for a long time. A big piece of this now is just educating those people that this opportunity exists.”

NFT

Users’ email addresses are massively exposed due to an OpenSea data breach

The NFT marketplace stated that it has informed law enforcement of the occurrence and that an investigation is in progress.

Published

on

The largest nonfungible tokens (NFT) marketplace in the world, OpenSea, has issued a warning to users after learning that a Customer.io employee may have sent the list of OpenSea users’ email addresses to a third party while working on the platform for managing email newsletters and campaigns.

All users who have provided their email addresses to the marketplace, whether it be for the platform or its newsletter, have been impacted by the incident. OpenSea warned consumers about potential phishing attempts after the hack.

On Thursday, the NFT market reported that it had spoken to law enforcement about the incident and that a probe was ongoing.

The most recent data breach is far from the only significant attack this year on OpenSea and its subscribers. The popular NFT marketplace’s Discord server was compromised in May, which sparked a flood of phishing attacks. Numerous user wallets were in fact abused. The platform experienced one of its most severe attacks to date in January, during which a vulnerability allowed attackers to sell NFTs without authorization. The market covered losses of $1.8 million.

Customer.io rival Hubspot was breached in March, exposing users’ usernames, contact information, and email addresses on BlockFi, Swan Bitcoin, NYDIG, and Circle. Names, phone numbers, and email addresses of users of various platforms were disclosed to an unidentified entity.

Hackers may try to contact OpenSea clients by sending emails from domains that resemble OpenSea.io or OpenSea.xyz, according to a warning from OpenSea. Spam calls, texts, and emails have all increased, according to Twitter users.

Continue Reading

NFT

The Future of NFT Gaming Doesn’t Rely on Big Capital Expenditures

Large game publishers typically oppose your ability to trade freely. The economic model used in popular games, where players purchase in-game cash or points in order to unlock more content and improve their experience, is at existential risk from NFTs (non-fungible tokens).

Published

on

If it were possible to regulate the flow of NFTs in a closed market, this would be a different story. Interoperability will be key in the future, according to industry upstarts, and digital assets represented by NFTs will be portable from one platform to another.

Large gaming companies generate billions of dollars from microtransactions, and a key factor in their success is their ability to retain players willing to pay money for in-game items. These businesses have developed systems that entirely exclude any legitimate third-party access to certain material or digital assets because they want their player base to invest a lot of money in the game.

NFTs have the potential to be revolutionary since they open the door for broad lending of these assets in addition to allowing speculators to profit. It’s no longer necessary for a player to put a significant number of money into the game in order to fully enjoy it by enabling investors to purchase an NFT and then loan it out to someone – either for a fee or a profit-split arrangement.

How play-to-earn is implemented

A fully developed gaming ecosystem will see the emergence of two different types of stakeholders. Investors who have a sizable portfolio of in-game NFTs are less likely to play the game in exchange for a daily return of $50. Then there are gamers from all over the world, who in certain circumstances would make significantly more money than the minimum wage under a profit-sharing system for lending.

The second category, who can have less money, is more worried about the short-term volatility and low liquidity of digital assets. They are unable to take the risk of accumulating NFTs in the hopes that they will be steadily profitable and hold or increase in value.

In the gaming industry, tradeable digital assets already exist. However, the practice of putting these assets on the blockchain is expanding; this was a general trend in 2021, when NFTs earned $8.4 billion in revenue. The logical next step for this sector is video games, and since more and more of these sales are shifting to blockchain gaming, there may soon be a noticeable increase in established companies moving in-game objects, characters, and skins on-chain.

As opposed to nominally belonging to the investor or player but really being at the mercy of a centralized gaming platform that can ban the user at any time, on-chain assets are designated as unique and belonging to one true owner. It’s more decentralized and provides users a lot more room to choose their own routes, especially when it comes to lending in-game items and lowering entrance barriers.

creating the framework for play-to-earn players to borrow If NFTs result in a rapid expansion of the player base in new markets, they can be extremely advantageous for game producers. Even before one considers how digital assets might be coded to meet cross-platform use cases or be employed in metaverses, making the industry more accessible irrevocably alters the entire landscape.

The compatibility of digital resources

The idea of full cross-metaverse employment of NFTs on a single digital identity raises a host of hitherto unimagined benefits. As a result, potential value is unlocked and speculation may be brought under control in a less erratic and more stable market.

The restrictions must be adjusted and will be based on the rarity of particular assets and what you may do with them. Can they be upgraded? Can you construct on NFT land to increase its value? Should players be able to own an entire mountain, or can they only purchase plots? It will be entirely community-driven if gamers own everything, but creators should have some voice and may feel the need to impose restrictions.

It is likely that a DAO (decentralized autonomous organization) operated system, in which the entire globe is owned by members and NFT holders, is now being developed. However, it is unclear whether this will be sustainable without a rigid set of regulations.

establishing NFT financing

When you attempt to transfer an actual NFT to another user’s digital wallet, problems happen. You would want the loanee to post collateral to secure the loan because there is a danger of the loanee defaulting. This creates a capital cost that acts as a barrier to entry for a sizable number of potential players.

A preferable approach would be one in which the NFT’s utility, or “wrapped,” is the sole thing rented out. An NFT holder can put the asset in a smart contract, specify the loan terms, post it for rent on the market, and let the free market function as it should.

The wrapped NFT is a newly created copy that has the same metadata, URLs, and other characteristics as the original and can be programmed to expire after a specific date. By doing so, the human-trust layer is removed, and the remarkable security that blockchains offer is provided. In essence, this wrapped NFT is only useful and cannot be spent.

It expires, returns to the smart contract at the maturity date, and is burnt as the result of a frictionless, risk-free, and collateral-free NFT lending system. Additionally, if the loanee improves a piece of land or gives a character a lot more playtime, the original NFT might appreciate as a result of the loan.

The blockchain will be updated with these changes as a direct result of the wrapped NFT’s experience. Most NFT projects and protocols are moving in the direction of this methodology in the wake of the infamous Axie Infinity hack, which cost $600 million.

The rumor about large developers

Popular game producers will find it more difficult to avoid presenting some sort of product if current trends continue and the NFT lending sector experiences significant expansion over the following few years.

Ubisoft and Epic Games are already testing, and it’s feasible that NFTs may follow the same trajectory as the idea of cryptocurrencies in general, where everyone will eventually use elements of distributed ledger technology. The notion is that this will become too alluring for businesses to ignore, or they may employ private chains or something similar.

The play-to-earn buzz is not something that traditional gamers like, and they frequently have a point. The overall quality of the market is now relatively low, and players just play these games to earn cryptocurrency, so there isn’t much to get excited about. This has a detrimental effect because it was once hailed as the new paradigm.

The problem of people quitting a project because the value of the rewards has declined due to a token price fall is still there.

Some time may pass before those seeking a better future in NFT gaming. The profitability of large developers’ existing strategies won’t be simply abandoned in favor of a more decentralized NFT-based economy because doing so would undermine their economic model. However, seasoned creators may begin experimenting with already-existing in-game assets as NFTs, and they may profit greatly in this fashion.

Unless their bottom line is in danger or a highly lucrative opportunity arises, multibillion-dollar corporations often adapt slowly. Maybe both of these elements will be crucial in bringing about a change in how we handle digital assets.

Continue Reading

NFT

How Axie Infinity Recovers From $600M Hack and Relaunches New Ronin Bridge?

The popular non-fungible token (NFT) game Axie Infinity’s developer, Sky Mavis, celebrated the Ronin Bridge’s re-launch.

Published

on

Users may deposit, stake, withdraw money from the game, and access additional functions thanks to this cross-chain platform. In March 2022, the bridge’s remaining $600 million was drained.

Sku Mavis and the Axie Infinity team have been collaborating with law enforcement since the incident to retrieve the 173,600 ETH and $25.5 million in USDC. In this way, they have re-deployed the Ronin Bridge and compensated any users who lost money as a result of the attack.

All users have been fully compensated, as indicated in the release. Two outside firms, Verichains and Certik, have audited the new Ronin (RON) network. These businesses investigated the Ronin Bridge Smart Contracts and its components, then made their security findings public. Verichains reported

The audit team found certain weak points in the application during the audit process and made some recommendations as a result. The Sky Mavis team addressed and updated the smart contract code in accordance with our suggestions. There were no issues of Medium, High, or Critical severity with the Ronin Bridge Smart Contracts.

The updated architecture of the Ronin Bridge has added a new “circuit-breaker” feature in addition to the two independent audits of its smart contracts. This was specifically included to stop malicious actors from repeating the prior attack or making use of any potential new attack vector.

The corporation will reportedly make an effort to find the stolen monies, according to the notification. As previously announced, all users will be able to withdraw their funds in the interim:

As promised, all wETH and USDC that Ronin Network members own are now completely backed 1:1 by ETH and USDC on Ethereum. The entire user base has been restored.

This prevented the Axie Infinity DAO’s 56,000 ETH from being used. The condition of these assets will depend on how well law enforcement efforts go. The Axie DAO will “vote on next moves for the treasury” if this plan doesn’t produce any results after two years.

How Users Will Be Protected By Axie Infinity From Potential Attacks
The circuit-breaker system will function using a withdrawal restriction depending on total value. Large withdrawals will require the approval of over 70% of the node or, if they exceed $1 million, the signatures of 90% of the validators.

Withdrawals of more above $10 million require the approval of a manual review process that takes up to 7 days and requires the signatures of 90% of the validators. The daily maximum withdrawal amount on the new Ronin Network will be $50 million.

This limit must be manually reset by a Ronin administrator if network transactions exceed it. The project’s leadership stated:

We are more determined than ever to see Ronin establish itself as the de facto standard for consumer and gaming blockchain applications.

Continue Reading

Trending

bitcoin
Bitcoin (BTC) $ 19,158.73 4.73%
ethereum
Ethereum (ETH) $ 1,027.27 9.36%
tether
Tether (USDT) $ 1.00 0.10%
chiliz
Chiliz (CHZ) $ 0.094771 7.41%
enjincoin
Enjin Coin (ENJ) $ 0.475414 9.88%
decentraland
Decentraland (MANA) $ 0.815870 7.98%
flow
Flow (FLOW) $ 1.42 12.47%
the-sandbox
The Sandbox (SAND) $ 0.977714 7.25%
wax
WAX (WAXP) $ 0.088083 10.53%
ecomi
ECOMI (OMI) $ 0.001332 5.60%