What Is Warm Crypto?
I first heard the term “warm crypto” from former Time magazine president Keith Grossman during an NFT fundraiser he led on Twitter in 2022 for the charity New York Cares. (Full disclosure: Author donated to a past New York Cares charity NFT project.) Grossman used his media influence to raise money for the charity, using NFTs for good.
But what is “warm crypto,” and what are some examples? These days, it seems like all we read about are scams, hackers, scallywags, rug pullers and Ponzi schemes. Then, of course, there are the bad people in digital currencies as well!
Warm crypto is digital currency used for good. This concept is about the power of community, and I believe it can apply to any charity, business or business leader. When a community comes together, often seemingly impossible things can happen.
For instance, OnChainMonkey and Metagood are web3 companies where an NFT is more than a JPEG — it is considered membership to a forward-thinking global community. The community has helped raise and donate to charitable organizations through Metagood Giving Fund, helped fund the relocation of Sharbat Gula, a well-known Afghan refugee and many other worthwhile causes.
Another example of leveraging crypto for good is Nadya Tolokonnikova, a creator of the feminist art movement, Pussy Riot, who has helped raise over $7 million to help families in Ukraine. The proceeds were deposited into a DAO, or decentralized autonomous organization, which is a “type of bottom-up entity structure with no central authority,” where members own tokens and “can vote on initiatives for the entity.”
This shows how community can come together to use crypto for good. But how can it also be applied to an everyday startup or entrepreneur with good intentions but without global recognition?
Recently, CryptoNovo, a web3 personality well known for wearing a computer-generated mask, had his digital wallet hacked and hundreds of thousands of dollars worth of NFT works stolen, including a CryptoPunk (which is a valuable form of identity in Web3). Followers and friends of his held a fundraiser to help get his beloved CryptoPunk back, which had been listed for sale online. The campaign was successful, and CrytopNovo then returned the goodwill by organizing an NFT art exhibition with several contributors earlier in 2023. This is a clear example of “giving precedes getting,” which I’ll explain in a later paragraph.
The Rolling Stone Culture Council is an invitation-only community for Influencers, Innovators and Creatives. Do I qualify?
Beyond the bad news headlines, there is an underlying bedrock of high-minded individuals seeking a more fair and equitable future for artists, musicians, brands, etc.
My advice for the countless charitable organizations doing good in the world yet experiencing challenges in fundraising via traditional means is this: Consider connecting with an established crypto/NFT community. But remember: Don’t just say “yes” to someone who contacts your organization with an NFT project. Do your due diligence first, looking into the community, and examining the culture and how it operates.
One secret that has helped me succeed in web3 is giving precedes getting. If there is a company or person you wish to work with, start following them online. Like and comment on their posts, and, over time, look to see if there is something they need that you might be able to help them with. When the opportunity presents itself, reach out, even if it’s a quick message to them. I have made countless friends as well as lucrative business partnerships by giving before getting.
It may sound overly simple, or you may ask yourself, “How do I even find the right people, investors and doors I want to open?” But when the student is ready, the teacher appears.
When it comes to web3, I tell people we’re late to a party that hasn’t started yet. The user adoption and friction to entry into web3 are still in their infancy. It reminds me of how some people once described the internet as a passing fad that would never last. Remember that Time magazine cover in 1994 declaring it was “the strange new world of the internet”?
The naysayers declaring that the internet was just a fad in the Nineties were wrong, and I believe the naysayers that believe crypto and NFTs are a scam are likely wrong now. From my perspective, the party hasn’t even started yet — we are living in rapidly changing times on every level.
When a community joins together to do good, we must never underestimate the power of good that is inherently encoded in the hearts of everyone.