According to some Kenya-based activists, raising funds through sales of cryptocurrencies and non-fungible tokens (NFTs) is not only faster but also less expensive. The activists added that the digital currency also has “the potential to create new ways for young people to earn, spend, save and send money.”
Drying out traditional financing channels
After the Covid-19 pandemic dried up traditional funding channels, some African activists responded by raising funds through sales of cryptocurrencies and non-fungible tokens (NFTs). The funds raised, in turn, ensured that the campaign’s sponsorship business continued unimpeded by the challenges associated with the pandemic.
While cryptocurrency is still relatively new to some activists, the director of a Kenyan slum-based non-profit organization known as Kibera quotes Thompson Reuters Report Noting that this is actually a faster way to raise funds.
“Raising funds through cryptocurrency was something new to us. But now he will know how we carry out our welfare activities because we have seen how quickly we can move in fundraising,” explained Byronis Khenga, Technical Services Manager at the Humanitarian Needs Project.
According to the report, the Khainga Human Needs Project has been involved in installing a statue made of plastic depicting a giant faucet. The statue was created by Benjamin Von Wong who is an artist/activist – who raised money by selling NFTs – and Degenerate Trash Pandas, the Kenyan NFT community that advocates for plastic waste. They reportedly raised $110,000 through NFTs and that money was used to install a giant plastic statue.
Crypto lowers entry barriers
Besides being a faster way to raise money, “crypto .” [also] It reduces entry barriers,” said Roslyn Wanjiru, a researcher at the Blockchain Association in Kenya. She adds that more companies and individuals are turning to this financial technology.
The report also cites Scott Onder, senior managing director at Mercy Corps Ventures, as explaining why cryptocurrencies do better move money across borders. He said:
Cryptocurrency removes this costly barrier and has the potential to create new ways for young people to earn, spend, save and send money.
While critics often highlight the energy inefficiencies of cryptocurrencies like bitcoin, Big Mitch, a Kenyan choreographer and youth coach, argued that the good things about technology should not be ignored. For Von Wong, any fundraising approach that makes it easier to move capital more quickly and at low cost “is always a good thing.”
Register your email here to get a weekly update of African news sent to your inbox:
What do you think of this story? Tell us what you think in the comments section below.
photo credits: Shutterstock, Pixabay, Wikicommons