Crypto exchange Coinbase is winding down Givecrypto, a nonprofit set up to provide crypto to those in need. “Over the years, Givecrypto distributed cryptocurrency to thousands of individuals in need,” Coinbase said. However, the exchange admitted: “We were unable to create lasting change purely through unconditional cash transfers.”
Coinbase Drops Givecrypto
Cryptocurrency exchange Coinbase (Nasdaq: COIN) announced Friday that it is winding down the Givecrypto initiative, a nonprofit funded by its CEO, Brian Armstrong, to provide crypto to those in need. The announcement details:
Despite the positive impact it has had, we were unable to create lasting change purely through unconditional cash transfers.
Givecrypto has been one of Coinbase’s charitable programs dedicated to “increasing economic freedom worldwide,” the firm described, emphasizing: “After much consideration, we have recognized that we need to take a new direction.”
Armstrong introduced Givecrypto in June 2018. The executive described in a blog post at the time that its mission “is to financially empower people by distributing cryptocurrency globally.” He added that “Initial recipients will be people living in emerging markets, especially those going through financial crisis.” However, a Fortune article published in September 2022 details how “Coinbase’s $1 billion crypto philanthropy ambitions left a trail of disappointment and workers in the lurch.”
Coinbase’s Friday announcement explains:
Over the years, Givecrypto distributed cryptocurrency to thousands of individuals in need, with measured short-term improvements in their outcomes. We also validated how cryptocurrency makes it easier to send small amounts of money across borders, directly to the intended recipient instead of through middlemen.
“Unfortunately, we were unable to create a lasting impact with recipients, who returned to the same baseline after payment ceased,” the crypto firm stressed.
According to Coinbase, all remaining Givecrypto funds will be donated to Brink and Givedirectly. The exchange noted: “Brink is working to strengthen the Bitcoin software and protocol and Givedirectly is better equipped to ensure crypto donations reach those who need them most and will experience sustained benefits.”
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