A Coins for Humanity due diligence checklist before you put tokens into crypto-charities

At Coins for Humanity, we believe that crypto-charities are not a fad, and that they represent a revolution in philanthropy and giving. Nevertheless, we must acknowledge there can be risks in putting your tokens into these projects.

How can we be sure that the project will be a success long-term? How can we feel safe entrusting our tokens to the project? Who is in charge of the project? How accountable are they? How secure are the code and its administrative wallets? Are donations actually being made?

There are no simple answers to these questions. Crypto-charities come and go, the technology evolves rapidly, and best practices have yet to emerge. You will have to do your own research. At Coins for Humanity, we use the following crypto-charity quality checklist.

All information in our blog is provided merely for informational purposes. Coins for Humanity does not provide investment advice.

Ecosystem

• How does the project incentivize coin holders and replenish its donation wallet?
• What is the project doing to connect with like-minded people who could further support the project?
• Is the project collaborating with established non-profit organizations or governmental agencies to increase its reach and impact?

Accountability

• Are some of the leadership identities made public? Is the project incorporated so as to ensure some form of legal protection?
• Does the leadership team hold regular ask-me-anything (AMA) sessions?
• Is the leadership team accessible and responsive on social medial platforms such as Telegram and Discord?

Security

• Has the project code been audited by 3rd party cybersecurity companies?
• Does the project have protections against “rug pull”, such as locked developer wallet or burned liquidity pools?
• Has the project invested in brand protection, such as logo copyright registration, and relevant/similar domain name registration?

Global Reach

• Is the project website multi-lingual, via professional translation (not Google Translate)?
• Does the project have language-specific channels for non-English speakers?

Donations

• How long of a donation track record does the project have? How trustworthy are these recipients? Have the recipients publicly acknowledged the donations?

These are just some of our thoughts. Please feel free to reach out to us on Twitter as we continue to update this live checklist.