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The meteoric rise of Bitcoin and other cryptocurrencies has made fortunes for investors. Following the 2024 federal election in which almost 300 pro-crypto candidates were elected, the market capital for the crypto sector rose to over $3 trillion.
While backers of both sides of the political aisle seek to promote crypto as a legitimate alternative to conventional forms of monetary exchange, the fact remains that Bitcoin and crypto have an image problem — one that philanthropy could help to overcome.
Controversies within the sector are an ongoing challenge in establishing widespread acceptance and credibility. From the collapse of the FTX exchange that cost investors over $10 billion to the more recent failure of Hailey “Hawk Tuah Girl” Welch’s $HAWK meme coin, some investors continue to see crypto as a risk not worth taking.
The general perception of the crypto community is that it is dominated by young males who are bullish on blockchain technology and decentralized finance, eager to show off their wealth on social media and are largely dismissive of those who criticize the sector’s lack of regulatory oversight.
This is where crypto-backed philanthropy presents an opportunity that could help turn the tide.
The precedent is well established. Industries that embrace philanthropy help solidify their standing in society and quickly earn broader public acceptance. When the tech sector exploded in the late 1990s and 2000s, public perception was similar to how crypto is viewed today: young men getting rich in the absence of regulatory oversight without contributing much back to society.
However, to their credit, companies like Google, Microsoft and Salesforce have leveraged philanthropy by infusing it into their corporate DNA and boosting their company’s profile and that of the tech sector overall.
Google.org has delivered billions in grants and in-kind support to causes ranging from digital inclusion to combating climate change and youth education initiatives. Microsoft is also focused on sustainability, digital skills training and supporting nonprofits through donations of digital equipment and software. Salesforce’s 1-1-1 model, which commits 1% of its equity, technology and employees’ time to support initiatives that contribute “to a more equitable and sustainable world.”
The ascent of AI offers other lessons for the crypto sector, given that most of the key voices in AI development are proponents of its ethical use and the creation of sensible regulatory frameworks. The crypto sector made a strong step forward in that direction by voicing its support for FIT 21, the first concerted effort in the US to regulate digital assets.
While adequate regulatory oversight is a key step in furthering crypto’s broad adoption, embracing philanthropy would do wonders for accelerating that process.
Beyond technological innovation and financial gains, people need to trust the deeper ‘why’ behind any movement—especially one as disruptive and controversial as crypto.
Related: Why Not Owning Bitcoin is Making You Poor
Today, it’s easy to see massive wealth being generated in the sector, but what’s not clear to the general public is the higher-order purpose that could inspire confidence and credibility. By actively investing in philanthropic causes, the crypto community could demonstrate a level of maturity and responsibility that would reassure skeptics and help foster trust in crypto as a force for good.
Just as they rallied together to support FIT 21, crypto’s leading voices should consider establishing impact funds that pool wealth for social good, particularly since the blockchain technology that underpins crypto holds significant potential for helping nonprofits demonstrate full transparency.
Of course, normalizing crypto donations to charities and nonprofits is another part of the equation due to the limited resources those organizations have to adopt new technologies, particularly when the regulatory and taxation environments remain murky.
Platforms like The Giving Block are helping nonprofit organizations accept crypto donations by serving as an intermediary that converts crypto donations into cash on behalf of the recipient. The Giving Block’s 2024 annual report states that over $1 billion in cryptocurrency was donated to nonprofits in 2024 alone. While that number may sound big, it’s relatively minimal given the $3 trillion in market cap and unrealized capital gains associated with the sector.
Moving forward, crypto companies and leaders should work with charities and nonprofits to help educate them and provide training and resources so they can directly accept crypto donations – rather than go through an intermediary that converts the donations into cash. The Salesforce 1-1-1 approach would be a great model for crypto companies to follow to that end.
Over the years, we’ve seen massive, high-profile donations that have helped change the perception of the ultra-wealthy and the sectors they represent. Ted Turner, who founded CNN, famously donated $1 billion to launch the United Nations Foundation in 1997. Investment banker Warren Buffet has donated over $50 billion to charities since 2006 and has committed to donating 99% of his remaining wealth after his death – an amount that could exceed $150 billion.
So I’m here with a challenge for the leaders of this new wave of technology millionaires and billionaires that represent the crypto sector: Seize the moment by making a bold, game-changing donation — one that captures public attention while fostering lasting respect, credibility and impact.
There has never been a greater opportunity than today for the promise of crypto to be realized, but it’s up to those within the sector to help move the ball over the goal line. Embrace philanthropy in a meaningful while continuing to lobby for sensible regulation. These actions could be the critical final pieces to facilitate the widespread adoption of crypto.
