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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.

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#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

Could this trademark application indicate that PayPal is developing an NFT market? 

A trademark application for blockchain and cryptocurrency technology has been submitted by PayPal. Some claim that the file has something to do with Web3 and the metaverse, although it may be tied to an NFT marketplace.

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A recent trademark application by PayPal has been found, and it suggests the development of a service pertaining to several facets of blockchain technology. The file, which was made on October 18, makes a notable allusion to the potential introduction of a non-fungible token (NFT) market.

For its logo, PayPal submitted two trademark applications. The first one concerns “downloadable software” for cryptocurrency trading and storage. The second discusses cryptocurrency-related payment processing services.

Although users may currently buy cryptocurrencies on PayPal’s platform, this filing suggests that there may be more to come. The concept of assets is substantially broader in the filing’s terminology. Mike Kondoudis, a trademark lawyer licensed by the USPTO, claimed on Twitter that this filing relates to NFTs and the metaverse.

Although there is no proof to support this, it would not be shocking if it were true. The finance business would be adding its name to a lengthy list of businesses that are starting to make inroads into the Web3 and metaverse spaces.

PayPal is investing more in cryptocurrency.
Over the past two years, PayPal has intensified its focus on cryptocurrencies. First, the company made a huge announcement for the industry by saying that consumers would be able to purchase cryptocurrency on its platform.

However, it didn’t start enabling users to move those funds into wallets outside of the network until recently. It indicated that it would roll out additional crypto-related features in the latter part of last year. One of those additions might be an NFT marketplace.

It teamed up with Coinbase’s TRUST network more recently. This was viewed by many as an endorsement of the sector. The TRUST network upholds consumer security and privacy while adhering to the banking industry’s Travel Rule.

Increased Criticism of Payment Giant
Additionally, PayPal has been in the spotlight for all the incorrect reasons. The business has recently come under fire for a contentious policy that penalized users for disseminating false information. Later, it claimed that false information was released with the amended policy. Crypto aficionados, however, were eager to point to this as evidence of the value of decentralization.

PayPal established a blockchain and cryptocurrency advisory committee earlier this year. According to the company’s management, working with governments is essential to overcoming obstacles and seizing possibilities.

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NFT

Seba Bank, a cryptocurrency company, aims to store valuable NFTs

Seba Bank, a cryptocurrency company, has launched its first NFT service, a blue-chip NFT-specific institutional-grade, certified, and independently audited hot and cold storage custody product.

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The launch comes in response to requests from customers to keep their NFTs with the bank alongside other crypto assets, such as the already-approved Bored Ape Yacht Club, Cryptopunk, and Clone X NFTs. The bank stated that new collections would be added based on customer demand.

With its newest offering, Seba Bank seeks to entice investors who view NFTs as an asset class and crypto natives. Not your keys, not your bitcoin is a well-known phrase in the crypto sphere, and adherents of this maxim could object to having their Apes or Punks stored with a third-party custodian.

Urs Bernegger, co-head of markets and investment solutions at Seba Bank, however, highlights a growing group of NFT holders who are more at ease handing up their NFTs and private keys to a company.

They don’t want the key because they aren’t even aware of how to handle and store it. He claimed that they’re more concerned with damaging the key than giving it to a bank.

It’s a significant issue. Between 2.3 million and 3.7 million bitcoins, according to Chainalysis, are trapped in inaccessible wallets. Numerous accounts of people have lost millions owing to losing private keys, including Russian officials, students, and engineers. Families have also been prevented from accessing substantial quantities of money following sudden deaths in which wallet owners had not disclosed their private keys.

Bernegger asserts institutional custody can be advantageous for native crypto users as well. There has been an increase in businesses providing services that employ NFTs as collateral for conventional banking services like loans.

Seba Bank is thinking about implementing these features in the future. Based in the crypto-friendly Swiss town of Zug, the four-year-old bank already backs several investing, credit, lending, and staking options for cryptocurrencies and might extend them to NFTs.

“Instead of traveling to the market, for instance, we could create a club for collectors and assist them in finding other collectors. There are a few things we have in mind, but we laid the groundwork by storing NFTs securely at first, “explained he.

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The NFT album maker for Kings of Leon now includes a metaverse music venue

YellowHeart, a Web3 ticketing startup, is opening a metaverse music venue in an effort to transform how performers, teams, and event organizers distribute tickets and interact with fans.

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The facility, constructed on Spatial, will feature Grammy-nominated blues musician G.Love as its opening act later this year. Fans can communicate with one another, participate in meet-and-greets before and after performances, and use several screens to view what is happening in various areas of the stadium simultaneously.

They will soon be able to order meals and drinks before the event, which will also be available as digital things.

The idea of an online concert has so far primarily been popularized by big gaming companies. The most well-liked virtual competitions have occurred on sites like Fortnite and Roblox. Ariana Grande’s Fortnite concert in August 2021 received 78 million viewers. Next month, Decentraland will host its second Metaverse Music Festival. Over 100 musicians are on the lineup, including well-known performers like Ozzy Osbourne and Soulja Boy.

In addition to throwing an event, YellowHeart, which assisted Kings of Leon in releasing an NFT version of their most recent album, stated that it hoped to accomplish more. It was established in 2017 with the lofty goal of revolutionizing the music ticketing sector as a whole, which has historically been dominated by powerful reselling organizations and exclusive ticketing relationships. These alliances frequently impose limitations on what purchasers can and cannot do with their tickets. Trying to resell a ticket for a concert you can’t go to might be a headache.

YellowHeart believes these issues can be resolved by returning control to artists and fans via web3 technology. Additionally, it may provide advantages that cannot be programmed into conventional tickets.

“These range from complete albums to personalized vinyl records, exclusive merchandise, and immersive visual art. Web3 tickets also allow performers to update fans on new tour dates, music releases, giveaway possibilities, and much more, according to the business.

It has already collaborated with well-known figures, including Julian Lennon, Maroon 5, and MGM Resorts. Contrary to the non-NFT versions offered on Spotify, iTunes, and other platforms, those obtained through YellowHeart entailed particular customer benefits.

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