In light of the COVID-19 pandemic during which physical donations were out of the question, several charities turned to cryptocurrency in order to raise funds. Quick to follow, NFTs soon emerged as a boon for nonprofits that were looking for ways to fund their causes. Now, NFTs may be the way to go for donations in the future.
How can NFTs raise funds?
The most straightforward way in which NFTs can raise funds is through collaboration with creators and ambassadors. Celebrities and artists alike have donated the proceeds from their NFT sales to charities. Beeple, for instance, auctioned off “Ocean Front” for $6 million, all of which went to the Open Earth Foundation. Charities can also mint their own NFTs and sell them on NFT trading platforms to fund their causes.
NFTs also allow nonprofits to offer certain perks to the highest bidder. This could certainly serve as an incentive for donations and is sure to increase the number of funds raised.
NFTs do have their environmental drawbacks, yes. But one must also consider how NFTs have the potential to change millions of lives and causes, all for the better. The Ethereum Merge, too, may reduce energy consumption by more than 99% which might make NFTs a great way to donate to your favourite cause.