Worldcoin Price Crash Creates Problem for African Well Project

February 10, 2014 19:34 UTC

Update: It seems the Vertcoin community wants to make up the difference.

Update #2: The Noblecoin community has their own fundraiser through The Water Project, and it seems they convert everything to dollars as soon as possible.

A few weeks ago, we reported that the Worldcoin community was able to raise over $10,000 worth of worldcoins in order to fund the development of a new well system in Africa. At this time, the funds are still in the hands of someone in the Worldcoin community, and they may not be able to use them for their intended purposes. The price of worldcoins has crashed in recent days due to problems with Scharmbeck, which was supposed to be the Coinbase of Worldcoin. Since the funds were still being held in a Worldcoin paper wallet as of a few days ago, it is unlikely that the funds can be used for a Water Project sponsorship.

Requirements of The Water Project

The current US dollar value of the worldcoins and bitcoins raised by the Worldcoin Well Project is just under $5,000. While this is now half of the amount that they originally raised, the reality is that it’s still a large chunk of cash that could go towards a good cause. The only problem is The Water Project cannot be that cause. The original plan was to be a Project Sponsor in The Water Project, which is for donations of $10,000 or more. This would give the Worldcoin Foundation guaranteed recognition as the sole sponsor of a new well project in Africa. With the current price of worldcoins, the Worldcoin community will not be listed as the primary donor for a project. The fact that the amount raised by the Worldcoin community has dropped below the $5,000 threshold means that they will either need to raise more funds or simply donate those funds to an already existing project.

Volatility in Cryptocurrencies

The main thing that can be learned from this initiative setup by the Worldcoin Foundation is that cryptocurrencies are still rather volatile. The price of worldcoins has declined by more than 50% since the “completion” of the African Well Project, so there is only half as much money available to The Water Project at this point. Cryptocurrencies are still rather volatile, so it’s usually going to be a good idea to concert those funds to fiat as quickly as possible when they’re being used for a charitable cause. We actually saw the flip side of this problem in the Dogecoin community where the dogecoins raised for the Jamaican Bobsled Team actually more than quadrupled in terms of dollars before they were cashed out.

Last modified: April 20, 2014 18:31 UTC

@kyletorpey

Kyle is a freelance Bitcoin writer and the Marketing Director for Bitcloud. His work has been featured on Business Insider, VICE Motherboard, Let's Talk Bitcoin, and RT's Keiser Report . You can follow him on Twitter (@kyletorpey) or send him an email.