It all started back in March when the Covid second wave started wreaking havoc in India and as time passed it was getting apparent that India’s medical infrastructure was losing the war against the Covid-19 virus with a humongous number of people succumbing to it every day. At this point, it was clear that India’s health infrastructure was not well equipped to handle the dire situation as it severely lacked medical supplies and infrastructure to manage such a pandemic. During such dire times, the crypto community came forward to help. It all started with the co-founder of Polygon (earlier Matic), Sandeep Nailwal setting up a crypto relief fund in April and announcing it via a Tweet.
The relief fund attracted a lot of international support with the most notable donation coming from the co-founder of Ethereum Vitalik Buterin. Vitalik Buterin had donated 50 trillion Shiba Inu tokens to this great cause that amounted to $1 Billion at that time. The Shiba Inu tokens were originally gifted to Buterin by the founders of the token to promote it. However, after the donation, the Shiba Inu token lost its value by 50% and now the donation is worth around $400 million.
What happened to the donation?
In a recent interview with Bloomberg, Sandeep Naiwal stated that the relief fund has faced several hurdles due to the lack of a proper regulatory guide for crypto in India and also due to the Foreign Contribution Regulation Act. The crypto donation had to be first liquidated into US Dollars and then into Indian Rupees to adhere to the law. Currently, 80% of the funds have been liquidated and a total of $20 million have been donated for covid relief and another $20 million is in the pipelines.
The focus of the crypto relief fund project is to reach out to the underdeveloped areas in India that lack the basic medical infrastructure required to tackle the Covid pandemic. The project is helping to set up proper medical facilities with proper arrangements like ICU facilities required to tackle the pandemic.
The current aim of the team managing the crypto relief fund is to utilise the fund to ensure India is prepared to take on the third wave, which is predicted to hit India soon.
Naiwal further stated that they are aware and cautious with the disbursement due to the regulatory hurdles and also promised to offer independent audit reports to ensure transparency.
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