NFTs, or non-fungible tokens, have created many opportunities over the past year. Data from market tracker DappRadar showed that sales of NFT reached $25 billion in 2021. In particular, Artwork NFT achieved impressive growth. Financial services firm FinancePR recently discovered that 257 artists have earned at least $1 million in the last 30 days of NFT art sales. It is also worth noting that the number of NFT transactions continues to grow despite the recent downturn in the cryptocurrency market.
But with so much revenue generated in such a short time, some may be wondering how NFT creators are using these new revenue streams. Although this question is difficult to answer, industry experts believe that NFT philanthropy has become a major trend with the increase in sales of non-fungible tokens.
Alex Wilson, co-founder of The Giving Block – a non-profit cryptocurrency collecting platform – told Cointelegraph that the growth in NFT philanthropy reflects the overall growth in the NFT sector. Wilson said that NFT philanthropy started gaining momentum about six months ago, noting that The Giving Block has already received more than $12 million in crypto, or 30% of total donations come from NFT initiatives:
“In most cases, creators sell their NFTs and then donate some (or all) of the proceeds to their favorite crypto-friendly charity. Since most NFTs are traded for ETH, many NFT-related donations also come in the form of Ethereum.”
Given the recent interest in NFT philanthropy, Wilson stated that The Giving Block is currently working on a number of major NFT platforms to make crypto easier by incorporating the concept into the core product. “For example, we are working with NFT platforms to ensure that when someone sets up an auction, they can choose a charity from a drop-down list and then automatically send the proceeds there,” he said.
In addition to The Giving Block initiatives, Graph Blockchain, a decentralized finance and altcoin company, announced on January 24 that it has entered into a stock swap agreement with Niftable, an NFT charitable foundation. This agreement will essentially allow the Graph Blockchain to own Niftable upon completion of the acquisition.
Paul Haber, CEO of Graph Blockchain, told Cointelegraph that there are a number of benefits to focusing on NFTs in the philanthropic field. He added that most charities today rely on volunteers and have no experience in the emerging world of NFT.
Great Efforts at NFT Charitable Society
While new solutions from The Giving Block and Graph Blockchain could be game-changing for NFT philanthropy, artists and foundations are also beginning to use their own resources to ensure that revenue from NFT sales goes to good causes. Many of these actions are intended to help children.
For example, Sheqonomi is a project that uses NFT to help children in need, especially girls in developing countries. Anu Bhardwaj, founder of Sheqonomi, told Cointelegraph that the rewards-based listening app is specifically designed for low-income people who don’t have access to media streaming services like Spotify:
“This podcast is a listening app for people to listen, learn and earn, especially during COVID-19. We built Sheqonomi based on KaiOS, a $10 mobile in partnership with Indian telecom operator Reliance Jio. This will encourage 150 million JioPhone users to listen, learn and earn assets. digital and rewards in the near future.”
Bhardwaj also explained that users who listen to the app can earn reward codes as an incentive to provide the platform with user-generated data. Listeners can then store these tokens in their virtual wallets or use them in NFT artwork that will soon be featured on the Sheqonomi platform. Bhardwaj Sa:
«8. March 2022, International Women’s Day, we want an NFT gallery where people can buy NFT art with their tokens. Proceeds from each sale will be donated to the charities participating on our platform. For example, at least 25% of NFT sales will be donated to The State of Women Institute, a 501(c)(3) nonprofit that advocates for the stories and issues facing young women and girls. ”
According to Bhardwaj, the platform uses NFTs for philanthropy as these digital assets represent the voices of women and girls around the world. “The most important thing we want to emphasize is divine feminism in all its manifestations.