Binance, a heavyweight of the crypto arena, dropped a whopping $3 million in Binance Coin (BNB) for victims of Morocco's recent earthquake. In the wake of the earthquake, Binance Charity airdropped BNB directly to Moroccan users. But this benevolent act quickly became the center of a heated debate.
Binance, the world's largest cryptocurrency exchange by trading volume, established the Binance Charity Foundation (BCF) to use blockchain technology and cryptocurrency for social benefit, and it has been involved in philanthropic efforts all over the world. You can read all about it in this useful article.
Controversy
However, critics wasted no time labeling this move a PR stunt, arguing that disaster victims are in dire need of immediate essentials like food and water, not fancy digital coins. A valid point, you would think.
The man at the helm, CZ Binance himself, weighed in. In a bid to clarify Binance Charity's stance, he stated, "People need food and water, not crypto. We agree with that. Binance has a history of providing essential items. These take time to organize. Crypto is fast." Fair point, but the questions persist.
Binance Charity boasts a dual approach to disaster relief, offering essential items alongside direct access to funds through crypto-based donations. The speed and transparency of crypto transactions are undeniably impressive. BNB Chain transactions happen almost instantaneously, offering clarity that traditional financial transactions can only dream of.
Some have questioned the exclusivity of the donation, saying that it will primarily benefit existing Binance users. CZ defended this, arguing that Binance's user base already understands how to navigate crypto wallets and convert digital assets into local currency. The funds are expected to reach approximately 70,000 Binance users residing in Morocco.
But they also recognize the value of traditional aid and pledge to collaborate with local organizations, channeling funds from the public to local charities and users alike. That’s, firstly, condescending, but OK, they get there in the end.
Binance Charity remains open to feedback and data-driven improvements. They're even willing to engage with humanitarian experts to refine their initiatives further, according to the boss.
A Fascinating Prospect
Head of Binance Charity, Helen Hai, emphasized that they deploy "100% of funds to recipients,". Now, that is worth noting. Because most traditional charities spend huge sums of money on all sorts of things, including advertising, logistics, operational overheads, et cetera. If what Hai says is true, then that is worth lauding.
Though, it’s also worth noting that Hai has resigned from her position… Hmmm.
Time to get serious - We’ve done some digging, and it’s unclear as to how crypto is being used to aid victims of natural disasters, or those in need of relief. It’s clear that the blockchain can be certainly be used in all sorts of innovative ways. However, it seems that there’s a way to go before crypto can be considered a mainstream means of supporting those in need.
As for Binance and crypto… We’re unsure. What’s certain is that if 100 percent of the money goes to the intended recipients, then that’s wonderful. And, it's a wonderful thing if giving can become more transparent and easier. But, we can’t help but think that traditional supplies are a better means of supporting the victims. And, we can’t help but feel that sending funds to specific individuals, who also currently use your services could been seen as a little … shady?
