Coinbase and DustAid Partner to Facilitate Charitable Cryptocurrency Donations

San Francisco-based cryptocurrency exchange Coinbase has announced a partnership with DustAid, an organization that facilitates cryptocurrency donations to support charities as Christmas approaches.

According to Coinbase’s announcement, the partnership will let Coinbase users within the UK donate cryptocurrency to three charitable organizations fighting for different causes. To support these organizations, DustAid will be using Coinbase Commerce, the exchange’s solution for merchants to accept cryptocurrency payments.

These are the NSPCC, a leading children’s charity in the UK keeping them safe from abuse, the Little Edi Foundation, which supports struggling rural communities in Romania, and Space for Giants, which works to protect and secure the future of elephants and their landscapes.

The NSPCC’s Lead Digital Producer Louse Corden was quoted as saying:

We are really grateful for the backing we have received from DustAid and Coinbase, and we now hope that users of cryptocurrency go to their platforms to make a festive donation to Childline.

Duncan Murray, Managing Director at DustAid, said that the organization believes blockchain technology can help charities positively impact people throughout the world. The cryptocurrency community is notably known for its philanthropy.

Fidelity’s charity unit, Fidelity Charitable, revealed earlier this year it has received over $100 million in cryptocurrency donations since it started accepting them in 2015. In 2017 alone, when the market was booming to new all-time highs, Fidelity Charitable received $69 million worth of cryptocurrency.

An anonymous BTC supporter created last year a bitcoin charity called the Pineapple Fund, which donated over 5,100 BTC, then worth $55 million, to various projects, including the Free Software Foundation, the Electronic Frontier Foundation, and The Water Project.

Featured image by Sandy Millar on Unsplash.

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Trans-Fee Mining Crypto Exchange 'FCoin' Insolvent After Mistakenly Being Too Generous

One of the first cryptocurrency exchanges to adopt the controversial trans-fee mining (TFM) model, which has been called a “disguised ICO” has paused trading and withdrawals over a shortage of crypto worth up to $130 million.

According to a statement published by FCoin’s founder Zhang Jian, a former Huobi CTO, the exchange is now unable to process withdrawals as its reserves are down by between 7,000 to 13,000 bitcoin, worth over $130 million at press time, over an issue that’s “a little too complicated to be explained in a single sentence.”

Zhang’s statement details the cryptocurrency exchange wasn’t hacked, nor is it pulling an exit scam on its users. He detailed that an internal system error gave users more mining rewards than they should have received, noting the error wasn’t detected for a long period of time.

The transaction-fee mining model, which saw FCoin’s trading volume surpass $5 billion per 24 hours numerous times, sees the cryptocurrency exchange incentivize trading via its own token, FT. FCoin reimbursed users for transaction fees paid in BTC or ETH with FTs until 51% of the coin’s supply was distributed, and redistributed 80% of the BTC and ETH it collected to those holding FT tokens.

The controversial model drew criticism and saw Zhang defend it, claiming it was a misunderstood invention. At the time, he said:

If you look back at history, all new things were not recognized at the beginning. Many were believed to be fraud. Jack Ma was recognized as a fraud when he first promoted the internet in China.

Various cryptocurrency exchanges started adopting the TFM model shortly after, with research showing these platforms had unusually thin order books and low traffic taking into account the trading volumes they had.

According to Zhang, the errors in FCoin’s system gave away too many tokens in mining rewards from mid-2018 to mid-2019, when a complete back-end auditing system was implemented. As throughout 2019 the price of FT kept on dropping, Zhang and his team reportedly used their own funds to buy back tokens and drive up demand, a decision he claims was an error.

This, as it gave users a chance to sell their FT tokens and withdraw as much as possible from their accounts, while FCoin bought up tokens that kept on losing value. Zhang’s announcement came shortly after FCoin suspended its platform over a risk-control issue.

Zhang is now reportedly manually processing users’ withdrawal requests sent via email. The founder of the exchange claimed he will “switch tracks” to start again, and noted he hopes he can use the profits made from new ventures to “compensate everyone for their losses.”

Featured image via Unsplash.