Decoding Digital Philanthropy Analyzing Donors Choices in Cryptocurrency Donations

37 Pages Posted: 2 Apr 2024

See all articles by Milad Keshvari Fard

Milad Keshvari Fard

University of Bath, School of management

Jingshu Liu

Cranfield University

Fotios Petropoulos

School of Management, University of Bath, UK

Date Written: March 5, 2024

Abstract

Since Bitcoin’s inception in 2009, cryptocurrencies have found applications in various domains. However, despite the unique potential of cryptocurrencies for the nonprofit sector, especially in fundraising, there is a scarcity of research on the behavior of crypto donors. In this research, we investigate key attributes of cryptocurrencies that correlate with the amount of donations made in that specific digital currency, and explore characteristics of digital wallets that predict the donation behavior of wallet holders. For our regression analysis, we use donation data from the Aid for Ukraine campaign, one of the largest cryptocurrency fundraising initiatives launched in response to the Russian invasion of Ukraine. Our findings indicate that cryptocurrencies with a larger market cap and higher age tend to be favored by donors, while those associated with higher transaction fees are preferred less frequently. Donors also exhibit a propensity to contribute more in cryptocurrencies of higher price volatility. Moreover, everything else equal, stablecoins are used more often for donations. On the other hand, our results highlight that frequent cryptocurrency users tend to make larger crypto donations and are more inclined to continue supporting the campaign through future contributions. Furthermore, donors with identifiable names for their wallets tend to donate larger amounts, although this feature does not predict their inclination for future contributions.

Keywords: Cryptocurrency, Philanthropy, Donation, Blockchain, Crowdsourcing, Aid For Ukraine

Suggested Citation

Keshvari Fard, Milad and Liu, Jingshu and Petropoulos, Fotios, Decoding Digital Philanthropy Analyzing Donors Choices in Cryptocurrency Donations (March 5, 2024). Available at SSRN: https://ssrn.com/abstract=4748710 or http://dx.doi.org/10.2139/ssrn.4748710

Milad Keshvari Fard (Contact Author)

University of Bath, School of management ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

Jingshu Liu

Cranfield University ( email )

Cranfield
Bedfordshire MK43 OAL, MK43 0AL
United Kingdom

Fotios Petropoulos

School of Management, University of Bath, UK ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

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