Changpeng Zhao, the CEO of Binance, has responded to criticism following the company’s substantial cryptocurrency donation for earthquake relief in Morocco. Despite the charitable gesture, the move faced some negative feedback on social media platforms.
On September 12, Binance contributed $3 million in its native token, BNB, to support relief efforts for the earthquake in Morocco.
In response to the criticism, Changpeng Zhao expressed his thoughts on September 18. He noted that the objections mainly came from traditional charitable organizations unfamiliar with cryptocurrency donations. Zhao went on to outline five common issues raised regarding cryptocurrency donations.
One of the critiques was that people affected by the disaster need food and water, not cryptocurrency. In response, Zhao explained that Binance has dual programs, as the company has previously donated essential supplies like food, water, masks, and oxygen tanks. However, these physical donations take time to reach those in need, whereas cryptocurrencies can provide instant relief.
Another point of contention was the difficulty of converting BNB into Moroccan Dirham (MAD) in the country. Changpeng Zhao disagreed with this assertion, stating that cryptocurrencies can be easily converted into cash. He used an analogy, comparing a non-crypto person saying crypto is not cash to a blind person stating that lights are useless.
Critics also argued that Binance donations only benefit Binance/BNB users and not all individuals in need. Zhao agreed with this criticism, acknowledging that their reach is limited to their user base but emphasized their intention to help where they can.
In response to questions about why Binance doesn’t donate through traditional charity organizations, Zhao explained that the company does work with such organizations. However, he pointed out that traditional charities have their own issues, including traceability problems.
Additionally, Binance has extended its charitable efforts beyond the Morocco earthquake relief. They also donated $500,000 worth of BNB to assist those affected by devastating floods in Libya.
Changpeng Zhao highlighted that through cryptocurrency donations, they have been able to directly assist around 70,000 people in Morocco and an additional 12,000 people in Libya. He emphasized Binance’s belief in the power of direct giving.
On September 18, Binance published a blog post discussing “how crypto can transform charitable giving.” Furthermore, the company donated $7 million directly to the United Nations and various humanitarian organizations as part of its Ukraine Emergency Relief effort.
