The FTX Foundation is Sam Bankman-Fried’s non-profit organization that pledges to carry out FTX’s mission of effective altruism – to maximize the amount of good being created by the organization. FTX, Bankman-Fried’s cryptocurrency derivatives exchange, funds the organization so that it can achieve its number one goal of bringing the most amount of good into the world that it can. This means thinking long and hard about where each and every coin held by the foundation can be best spent to put that money to good use.
So, how did the FTX Foundation start, and how much good is it currently bringing into the world today?
History of the Foundation
The road to the FTX Foundation was paved when Sam Bankman-Fried founded Alameda Research in 2017 after putting his experience in quantitative trading to good use. This research organization ultimately led to the creation of FTX, his very own cryptocurrency exchange. After developing and growing FTX, Bankman-Fried realized the opportunity and special position he had to make a real positive impact on the world. A cryptocurrency exchange doesn’t just have to be solely focused on helping other traders succeed — he could use the company’s influence to contribute to humanity’s long-term success.
That’s when he took his efforts to create good in the world and expanded them to the FTX community that he had created. Bankman-Fried founded the FTX Foundation in 2020 to further expand FTX’s impact on the world.
The FTX Foundation’s Purpose
The FTX Foundation was created because Sam Bankman-Fried took away a key insight from the success of the FTX exchange. As cliché as it may sound, he realized that FTX could not have taken off without the support of its fervent community and like-minded effective altruists. So, the FTX Foundation was created to uplift the voice of its users – through the foundation, the community has a collective say about where FTX’s charity contributions get placed.
Whether it’s through donations to climate change activism or fighting global poverty, the FTX Foundation is geared towards tackling the biggest problems holding back humanity.
Amount for Charity So Far
The FTX Foundation is already well on its way to helping others.
As part of the FTX Foundation, the FTX Future Fund has made 262 grants totaling $132M as of July 1st 2022.
In total user donations, the FTX foundation has generated over $12 million through user trading fees on the FTX exchange, since FTX pledges to allocate 1% of its revenue from fees to the FTX Foundation. They have also collected more than $10 million in user contributions, bringing the total amount of earmarked charity contributions over $22 million. You can track the amount of money being raised by the foundation by viewing the foundation’s charity tracker.
*Line chart data visualization of cumulative donations and collected fees over time*
How the Foundation Ties into Effective Altruism
To enact FTX’s mission of effective altruism, the FTX Foundation launched FTX Climate in July 2021, which sought to carry out three primary goals:
- Make FTX carbon-neutral by the end of 2021
- Fund climate change research
- Give widespread support to various climate-related projects
In July 2021, Bankman-Fried detailed how the company was going to sustain their carbon-neutral efforts by donating $1 million to purchase roughly 100,000 tons of carbon offsets in order to neutralize their blockchain activity’s impact. FTX also committed $1 million to permanent carbon capture and storage in addition to the roughly $500,000 given to other climate change mitigation efforts.
The FTX headquarters is located in the Bahamas, so in October 2021, the FTX Foundation also developed a fellowship program to give aid to high-impact projects there and foster an effective altruism community on the islands.
This year, in February 2022, the FTX Foundation launched the Future Fund and FTX Community, two philanthropic initiatives geared towards supporting and investing in to invest in humanitarian-focused projects focused on global poverty, animal welfare, and other causes.
How to Get Involved
If you’re a cryptocurrency enthusiast who also wants to get involved with the FTX Foundation’s mission to maximize the good it can bring to the world, sign up for an FTX account today to support their cause.
Alternatively, you can join the FTT DAO, a growing community of FTX fans who seek to uphold the same principles of effective altruism.
The FTX Foundation has brought millions of dollars’ worth of contributions to humanitarian action, and it plans to continue these efforts as the community grows. Become a part of its journey today!