Coinbase, the prominent cryptocurrency exchange listed on Nasdaq under COIN, has declared the closure of its Givecrypto initiative, a nonprofit project originally funded by CEO Brian Armstrong to provide cryptocurrency aid. In the announcement, Coinbase stated:

“Despite the positive impact observed, we were unable to instigate lasting change solely through unconditional cash transfers. Givecrypto, a charitable program under Coinbase aimed at ‘enhancing global economic freedom,’ has prompted us to reconsider our approach.”

Introduced by Armstrong in June 2018, Givecrypto aimed to empower individuals financially by globally distributing cryptocurrency, particularly focusing on those in emerging markets amidst financial crises. However, a Fortune article from September 2022 shed light on how Coinbase’s $1 billion crypto philanthropy goals resulted in disappointment and left workers in limbo.

The recent announcement from Coinbase elaborates on Givecrypto’s journey:

“Over the years, Givecrypto successfully distributed cryptocurrency to numerous individuals in need, showing short-term improvements in their situations. Additionally, it highlighted the ease of transferring small sums of money across borders directly to recipients, bypassing intermediaries.”

“Regrettably, we couldn’t achieve sustained positive changes with recipients, as they reverted to their initial state after the aid concluded,” emphasized the cryptocurrency firm.

Coinbase revealed that the remaining Givecrypto funds will be redirected to Brink and Givedirectly. The exchange clarified, “Brink focuses on enhancing Bitcoin’s software and protocol, while Givedirectly is better equipped to ensure that crypto donations reach those most in need, fostering sustained benefits.”