Binance, the largest cryptocurrency exchange in the world, announced that it is airdropping funds to users affected by the floods in Libya. Extreme flooding in the eastern city of Derna has left at least 5,000 people dead, while thousands more are still missing.
"In the aftermath of natural disasters, people often lose access to traditional banking at the exact moment when extra funds are needed to help cover medical supplies, food and other essential needs," Binance said in a blog post.
To support its users in Libya, Binance said it is committing up to $500,000 worth of BNB to be airdropped directly into Binance accounts. Libyan Binance users who completed Proof of Address verification before Sept. 11 will receive $100 in BNB, and users who complete the verification between Sept. 11 and Sept. 30 will receive $25 in BNB. All other active Binance users in Libya will receive $10 in BNB.
Binance estimates that 13,000 users in Libya will receive BNB, the blog post said. Additionally, Binance Charity, the exchange's philanthropic arm, has created a public donation address where anyone can contribute BNB, BTC, ETH, USDC, USDT or BUSD. The donations will be directed to an authorized NGO, which will direct the funds to help those in need.
"In these difficult times, Binance stands by our users, and we will continue to work on additional ways to help our community in Libya," the blog post said.
Mediterranean storm Daniel caused extreme flooding in several eastern towns in Libya over the weekend, with the city of Derna being hit the hardest, AP News reported. Waves as high as 23 feet swept away entire buildings after two dams above the city collapsed.
Natural disasters can leave residents with no access to cash and no way to make critical transactions, Iron Mountain reported.
Crypto can serve as a way to provide fast relief across borders after natural disasters, CoinTelegraph reported.
“Cryptocurrency is cross-border, instantaneous and liquid, making it an ideal technology for raising funds and getting them to where they are needed most quickly," Chainalysis research director Kim Grauer said. “The transparency of blockchains is a unique benefit to cryptocurrency, providing opportunities to aid organizations to track donations and for law enforcement agencies to identify and trace illegitimate schemes attempting to capitalize in times of crisis.”
The number of charitable organizations on Forbes' list of "America's Top Charities" that accept donations in the form of crypto increased from 12 in 2019 to 49 in 2022, according to a Binance blog post.
