This is not the first donation from Binance. The Crypto Exchange is donating a large sum of money for China’s coronavirus victims.
Stock exchange provides money for victims in former home China
The provision of donations is an equally proven and popular means in the crypto world, sometimes with the aim of a serious paint job. Because there are still some black sheep, several companies in the industry are in legal conflicts. Some stock exchanges, for example, are in dispute with the US Securities and Exchange Commission (SEC), and the authority continues to block the hoped-for approval of Bitcoin Futures in particular. However, the Binance exchange, which is now based in Malta, wants to do something for the people in its former home country China with its latest action. The “largest Bitcoin exchange in the world” wants to make a financial contribution to the fight against the dreaded so-called coronavirus. Critics might think that the exchange for trading BTC, Ethereum and other tokens, would have liked to dig deeper into its pockets.
One of many charity campaigns of the exchange
Translated into US dollars, 1.5 million, which is equivalent to around ten million Chinese renminbi, may not seem like a very large sum for the company at first glance. Nevertheless, the impact of the announcement by Binance CEO Changpeng Zhao should not be underestimated. After all, the measure can also serve as a role model for customers of the stock exchange, who in turn will then make donations. In addition, Binance is generally not only characterised by a massive expansion policy, which recently led to a stronger commitment in Australia. In “Down Under”, the exchange had also launched a charity campaign for the victims of the rampant fires in Australia, in which interested parties were able to participate on the basis of the exchange’s own currency, Binance Coin (BNB). And, as the Binance Charity Foundation repeatedly emphasised, they can continue to do so. In this case, potential donors have a quarter of a year to make their own NBB contribution.
Digital currencies not suitable for direct donation distribution?
The company had already launched similar campaigns earlier. In the current case of the donation for the coronavirus victims, Binance is probably targeting not least the overburdened clinics around the particularly hard hit city of Wuhan. The hospitals are under considerable pressure – including financial pressure – due to the onslaught. The donation can also be used to purchase protective masks and other medical equipment. It may be surprising that Binance this time does not prefer the NBB for the provision, but mentions the national currency. CEO Changpeng Zhao commented in social media reports on the donation that the allocation of the funds in crypto-currencies to the victims/recipients is not “realistic”, at least not at present.