Binance, the Moroccan Earthquake and the $3 Million Controversy

<p>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.</p><p>Binance, the world's largest cryptocurrency
<a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> by trading volume, established the Binance Charity Foundation (BCF) to
use <a href="https://www.financemagnates.com/terms/b/blockchain/">blockchain</a> 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 <a href="https://www.financemagnates.com/cryptocurrency/how-has-binance-and-other-companies-helped-donate-to-the-relief-effort-in-morocco/">useful
article</a>.</p><p>Controversy</p><p>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.</p><p>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.</p><blockquote><p lang="en" dir="ltr">In response to the devastation caused by the recent earthquake in Morocco, <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw">#Binance</a> Charity will airdrop up to $3 million to <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw">#Binance</a> users living in areas affected by the tragedy.We expect our efforts will reach around 70,000 users living in Morocco.<a href="https://t.co/TKjsw6djLK">https://t.co/TKjsw6djLK</a></p>— Binance (@binance) <a href="https://twitter.com/binance/status/1701398491581559131?ref_src=twsrc%5Etfw">September 12, 2023</a></blockquote><p>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.</p><p>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.</p><p>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.</p><p>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.</p><p>A Fascinating Prospect</p><p>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.</p><p>Though,
it’s also worth noting that Hai has resigned from her position… Hmmm.</p><p>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 <a href="https://www.algorand.foundation/news/how-blockchain-is-transforming-disaster-relief">all
sorts of innovative ways</a>. However, it seems that there’s a way to go before
crypto can be considered a mainstream means of supporting those in need.</p><p>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 <a href="https://www.financemagnates.com/cryptocurrency/education-centre/transforming-philanthropy-the-impact-of-cryptocurrency-in-charitable-giving/" target="_blank" rel="follow">more transparent and easier</a>. 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?</p>

This article was written by Louis Parks at www.financemagnates.com.