NFTs: Bringing about the next level of funding social causes

NFTs: Bringing about the next level of funding social causes

NFTs are leading the new revolution in fundraising for the marginalised by reaching out to a global audience and also rewarding them for their contributions. (Representative Image: Shutterstock)



Non-fungible tokens (NFTs), digital assets backed by the technology that drives cryptocurrencies, are now spurring social change by facilitating fundraising for charitable causes ranging from female empowerment to supporting philanthropic efforts in war-torn countries such as Ukraine.

This ability to fund initiatives for a range of socially important issues through the sale of NFTs could power the next growth phase for this asset class.

Crypto-based donations have been trending since 2017, when an anonymous donor created the Pineapple fund by donating 5,104 Bitcoins to support causes including international aid and life-extension research.

NFTs are leading the new revolution in fundraising for the marginalised by reaching out to a global audience and also rewarding them for their contributions. When the proceeds from an NFT sale are used for a social cause, the donors are acknowledged with unique NFTs that can be traded further.

Last year was a landmark one for NFTs, with its total market size surging to a record $44.2 billion, largely due to their rising popularity and use-cases on account of the immutability