Crypto donations amplify speed and global reach during crisis

cointelegraph.com:

Donations made in cryptocurrencies are proving to be a fast and far-reaching means of providing financial aid during times of crisis, according to multiple industry players.

This has proven to be the case after devastating earthquakes hit parts of Turkey and Syria in February. Blockchain analytics firm Chainalysis estimates that around $5.9 million of donations have been made to support relief efforts in the region in the month since the natural disaster took place.

The likes of Turkey’s Ministry of Interior Earthquake Humanitarian Aid campaign, Turkish Red Crescent, Save the Children and Project Hope have received cryptocurrency-based donations. In addition, a number of cryptocurrency exchanges, including Binance, Tether, Bitfinex, OKX, and KuCoin, donated more than $9 million to support victims in the area.

Cointelegraph reached out to Chainalysis to unpack the methodology used to monitor crypto-based donations supporting disaster relief efforts in Turkey and Syria.

Chainalysis director of research Kim Grauer said the firm uses a combination of human intelligence gathered by its experts and proprietary heuristics to identify and monitor flows to cryptocurrency services. This includes organizations accepting donations as well as scams that have looked to divert donations from unwitting supporters.

Grauer believes that the speed of transactions and global nature of cryptocurrency transactions are proving to be an important means of providing quick monetary support during times of crisis:

Grauer also highlights the ability to accurately monitor blockchain data as another strong argument for the utility of cryptocurrencies in facilitating donations and support after disasters and major emergencies:

Antonia Roupell, Web3