On November 11, 2022, cryptocurrency exchange FTX filed for bankruptcy, prompting its swift fall from grace. As the findings came to light, the company and its Founder and CEO, Sam Bankman-Fried were accused of defrauding investors and mishandling billions of dollars.
Throughout his time as CEO of FTX, Bankman-Fried was a prominent supporter of effective altruism (EA), a philosophical and social movement that aims to find the best ways to help others, and put them into practice. Bankman-Fried’s prominence in the space has brought about a lot of questions surrounding the future and ethics of the EA movement.
It’s incredibly disheartening to see Bankman-Fried use philanthropy – specifically effective altruism – to cover up his wrongdoings, but we want to remind everyone that beliefs held by an alleged criminal are not criminal by association. Bankman-Fried’s association with the EA movement doesn’t invalidate the great work that thousands of effective altruists are doing around the world.
The same goes for philanthropic work in general. Just because a bad actor donates money or volunteers, doesn’t mean that everyone donating money or volunteering is a bad person. It’s important to separate an individual’s behavior from an industry’s behavior. The overwhelming majority of people doing philanthropic work are good people.
We’ve gotten a lot of questions from nonprofits and media on what the FTX fallout means for the future of philanthropy. Quite frankly, FTX played a very small role in Crypto Philanthropy and this does not slow down the growth of the industry. Despite this bad actor, Crypto Philanthropy is still on the rise. Twice as many nonprofits are accepting cryptocurrency donations through our platform than a year ago and crypto donors continue to generously support charitable causes all over the world.
At The Giving Block, we’re looking forward to seeing the crypto community come out in full force to raise millions of dollars for amazing causes around the world this Bag Season.
Best,
Alex Wilson and Pat Duffy
Co-Founders of The Giving Block
FAQ Section
Does this impact The Giving Block?
No, FTX does not impact The Giving Block. We use Gemini, a NY Trust Company where the crypto received by our clients is instantaneously converted to US Dollars that are FDIC insured.
How does this impact the Crypto Philanthropy industry?
There are hundreds of thousands of Crypto Philanthropists (and millions more who are incentivized to donate crypto), many of whom have not only sustained their giving this year, but expanded it. Since the fall of FTX, we have seen no impact on the industry as a whole. We recently received a $9.4M crypto donation, our largest of all time, and we’ve matched over $750K in donations over the last couple of weeks. We’re confident that this will be a blip on the radar as Crypto Philanthropy continues to grow into a pillar of the broader philanthropic ecosystem.
How does this impact my nonprofit’s crypto fundraising strategy?
We understand your concerns about crypto fundraising at a time when the industry is in the spotlight. However, it’s important to note that longtime crypto investors are familiar with the volatility of the marketplace and press on with their steadfast belief in the positive impact crypto can have across the globe. These holders are potential donors who are still seeking nonprofit organizations to support, even with the current market dynamics. At The Giving Block, we’ve had the pleasure of seeing the best side of crypto’s impact – with millions of dollars donated to organizations like yours – and that generosity has remained true throughout all trying times in this industry.
Standing with crypto donors at this time and sharing your belief in their community, the positive impact crypto has had on your organization, and the good that can come from Crypto Philanthropy, is an excellent way to cultivate and steward the individuals who have given to you in the past.
If you are new to crypto fundraising or your board and leadership would prefer you take a more conservative approach, we encourage you to share non-cash asset messaging at this time. Non-cash asset messaging keeps you within the category of both stocks and cryptocurrency donations, both of which are now accepted right within your Donation Form. You can find templates for this messaging in The Giving Block’s Crypto Knowledge Base.
For more support, join us for an upcoming Office Hours session. To register, log in to your Crypto Knowledge Base, email your Crypto Fundraising Strategist, or reach out to our Support Team. Rest assured within no time, this will be out of the newscycle and you can go back to your regularly scheduled crypto fundraising strategy.
