Business and NGOs are embracing cryptocurrencies
Startups and humanitarian organizations seem to be increasingly interested in cryptocurrencies, both to access funding and donations but also as a new secure payment method.
It must be said that the virtual currency has many advantages, such as lower fees for online transactions, better protection against identity theft and flexibility in carrying out transactions.
Cryptocurrency fundraising to finance startups
More and more startups looking to accelerate their development are favoring ICO (Initial Coin Offering), or cryptocurrency fundraising, as a way to access funding. Combining cryptocurrency and crowdfunding, the ICO allows to raise important funds that can amount to tens of millions of dollars in a very short period of time.
These fundraisings are often intended for the creation of decentralized applications based on an existing blockchain. They can also be directed at funding a new blockchain. Big names in Silicon Valley have already used cryptocurrency fundraisers to finance their new projects.
In addition to allowing startups to raise significant funds, this online fundraising method remains beyond the reach of regulators, while offering an optimal level of security.
French startups are not left out, as they are more and more numerous to bet on the ICO. One example is the video game start-up “Beyond The Void”, which has managed to raise 110,000 euros to launch new projects. For its part, the startup “iEx.ec” was able to raise $12.5 million in just 3 hours in April 2018.
Cryptocurrency donations on the rise
Cryptocurrencies, such as Bitcoin, Ethereum or XRP, often spark debate, and for good reason. This market continues on its particularly bullish trend. As an example, Bitcoin reached its all-time high in February 2021, surpassing the $47,000 mark!
Despite the speculative phenomena that cause virtual currency prices to skyrocket, the fact remains that the cryptocurrency community is backed by solid values of mutual aid, humanism and knowledge sharing. It also aspires to change society through the decentralization of money.
Cryptocurrency donations are a way to meet this challenge, and many organizations have figured it out! To diversify their funding sources, they now accept these virtual currencies; this allows them to manage humanitarian aid more transparently and securely at the international level thanks in particular to the blockchain. Among these organizations, let’s mention the American Cancer Society, Wikimedia, la Quadrature du Net in France, the United Nations or UNICEF.
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