Anonymous Individual Donates $56 Mln in Bitcoin to 60 Different Charities

  • David Dinkins
    ⭐ Features

    An anonymous donor, known only as “Pine,” posted to Reddit that he had made more money than he could ever spend off his Bitcoin investment and solicited grant requests

Anonymous Individual Donates $56 Mln in Bitcoin to 60 Different Charities
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An anonymous donor, known only by the alias “Pine,” has just given away $56 mln worth of Bitcoin to numerous charities. The gifts went to 60 different organizations, with amounts ranging from $50,000 to $5 mln.

The recipients of Pine’s gifts were generally fairly small organizations, and in many cases, he gave an amount equal to their entire annual budget. The head of one charity that received a multimillion-dollar donation was moved to tears, saying that the money arrived at the perfect time.

Pine initially posted his plans on Reddit, soliciting donation requests from any interested charities. He also sought out a number of charities on his own. He picked organizations where his money would have a “multiplier effect,” enabling rapid expansion or partnerships that would leapfrog the charity’s work.

Pine’s giving was completely transparent. He created the Pineapple Fund to convey his gifts and listed the charities, the amount given to each and the transaction ID of his Bitcoin donation, proving that he really gave the money.

Changing the image

Pine has chosen to keep his identity secret, in part for personal safety. But the bigger reason, Pine said, was that he wanted his gifts to draw attention to the entire cryptocurrency community.  The media has been full of reports of crypto millionaires over the last six months, with most of them focusing on the outrageous.

In one such example, a teenage millionaire calling himself the “Wolf of Crypto Street” is pictured standing next to his three Lamborghinis. Yes, three. Indeed, “lambos” has become a sort of rallying cry on the Ethereum subreddit, as investors in the currency’s ICO have found themselves with an ROI of more than 300,000 percent. A mere $1,000 invested in Ethereum’s ICO is now worth a staggering $2.9 mln.

With the media portraying early crypto investors as a bunch of greedy, get-rich-quick types who happened to get lucky, Pine is changing the narrative. He told The Chronicle of Philanthropy that he had made more money from his Bitcoin investments than he could ever spend, and he wanted to give back. In doing so, he hoped to raise the profile of cryptocurrency investors everywhere, and perhaps inspire other like-minded crypto millionaires.

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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan
    ⭐ Features

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money

Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.

You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

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Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

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