FTX Collapse & Effective Altruism (news)

Using the Whole Whale - A Nonprofit Podcast

What The FTX Collapse Does & Does Not Mean For Crypto Philanthropy & Effective Altruism

Crypto-exchange FTX, one of the largest such exchanges, collapsed last week, leaving the cryptocurrency world in disbelief as stakeholders try to piece together what happened and what comes next. The company’s founder Sam Bankman-Fried (known by the moniker SBF) was a visible proponent and donor to the effective altruism movement, as well as someone who built a personal brand as a prominent crypto-philanthropist. As noted by The New York Times, SBF was perhaps one of the most visible supporters of Effective Altruism, a community underpinned by a utilitarian approach to giving where donors focus on giving only to the most impact-efficient charitable causes. Created by Oxford philosopher William MacAskill, the Effective Altruism movement faces serious reputational trust issues as supporters worry it was a cover for the reckless FTX founder. It was also revealed by The New York Times that the two largest FTX Foundation grants went to nonprofits where MacAskill was on the board or directly supported the work of Effective Altruism. Bankman-Fried, who has also spoken frequently of his crypto giving, may have abused the crypto-philanthropy space to shield himself from questioning, but nonprofits should still understand that 38% of millennials own crypto and represent a major (and growing) potential source of donation revenue. (Editor’s Note: The above link is a blog post written by Whole Whale CEO George Weiner, the publisher of this newsletter. The Giving Block is a proud partner and client of Whole Whale.)
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