Estimated reading time: 4 minutes, 18 seconds
In the giving spirit this holiday season? Then you have to hear about the AidCoin project. CharityStars, the company behind AidCoin, is using blockchain technology to revolutionize how charitable giving occurs. By implementing AIDPay, a tool that takes donations in fiat and automatically exchanges them for cryptocurrency, which is then distributed to the charities.
CharityStars has used the unique method of forging relationships with celebrities and those that have access to memorabilia. They take these donations or experiences and auction them off to the highest bidder. A lunch with former Italian Prime Minister, Silvio Burlesconi, sold for $80,000!
Check out the video to see how AidCoin is changing the donation landscape!
What is AidCoin & what problem are they trying to solve?
AidCoin is an ERC-20 token with the goal to become the primary form of donation and paying service fees related to charitable giving. With the use of blockchain technology, AidCoin has installed a real token economy designed to incentivize the purchase and use of the token.
For some, they might see the opportunity to speculate and try to make money using the currency. If you’re very committed to giving a confident in the platform, it might be a good idea to purchase some tokens watch them grow in value, and then use those tokens to give. Instead of increasing your purchasing power if the currency grows, your increasing your giving power.
There are a couple components to the network that help it function AIDPay is an exchange payment solution that charities could easily integrate and accept donations in crypto. AIDPay instantly converts fiat and cryptocurrencies into AidCoin, providing a tax deduction receipt to donors. People can support a great cause and easily save money from their taxes. AIDPay’s fees are paid in tokens.
AIDChain is a platform that tracks AidCoin donation flows. It will be accessible to anyone – it’s basically their block explorer. (If you don’t know what a block explorer is or how to use one, we’ve got you covered in our How to video: How to read a transaction receipt.) AIDChain will be able also to track fiat money flows thanks to the integration with the banks’ API, providing a full transparent picture on how charities are using the funds.
Moreover, charities can use the platform to register, verify identity, and manage communications with the donors. AidCoin tokens will be required to access the different services offered on AIDChain.
What are the market conditions facing the project?
The online donation market is $15bn in the U.S. alone. It’s naive to think that the adoption of cryptocurrency will only affect the for-profit landscape.
If we do get to a level where cryptocurrency is used by a significant number of people, it’s very feasible that we could see a big change in how charitable contributions are given. Especially if it can cut down on operating costs, directing as much of the donation as possible towards the actual cause, and not someone’s salary or office supplies.
As much as we’d like to think that people solely give based off of the goodness of their heart, many, especially in the US, have made it regular practice to take deductions for their charitable giving. As stated, AidCoin will provide a receipt. My questions is if the IRS doesn’t recognize this as donating fiat to a tax exempt charity, will people who use AidCoin still receive the benefit of this deduction?
There are a couple projects doing similar things as this project. However they are using different strategies to achieve the same goal.
Who’s the team behind AidCoin’s ICO?
The AidCoin project was created and developed by CharityStars, a company that has worked with 500+ charities including UNICEF, Save the Children, and World Wildlife Fund.
How the organization came about is actually a pretty interesting story. The founder heard about someone paying $3M in a charitable auction just to have lunch with Warren Buffett. This idea sparked the main idea behind CharityStars.
CharityStars specialized by auctioning unique experiences (VIP backstage tickets, dinners with celebrities and top CEOs, etc.) and rare collectibles (jerseys worn by athletes, signed music memorabilia, luxury limited edition watches, artworks, etc). This affordable fundraising tool is a win-win-win for:
(1) charities, which gain with an effective channel to increase donations and achieve public awareness,
(2) brands and celebrities, who can improve their visibility while doing good, and
(3) bidders looking for original items and unique experiences have an opportunity to do so…
What are the details of the ICO?
- Symbol: AID
- Initial Value: 1,000 AID = 1 ETH
- Pre-sale: Nov 20th, 2017
- ICO: Jan 16th, 2018
- Type: ERC-20
- Maximum Cap: 30,000 ETH
- Token Supply Cap: 100,000,000 AID tokens
ICO or NO covers some of the hottest tokens sales from the coolest projects! Jeremy, though his patented Four Question System*, dissects each project to help you better understand the token sale! Check out more of our ICO or NO episodes here, and subscribe to our YouTube channel for future ones!
*Patent Maybe Pending