CoinJar Launches Bitcoin Donation Drive for Teen Entrepreneur

Stan Higgins
May 15, 2014 at 19:01 UTC
Updated Aug 20, 2014 at 15:10 UTC

woman with sheep

Australia-based bitcoin wallet and exchange service CoinJar has pledged nearly A$4,000 in bitcoin to a crowdfunding campaign started by young entrepreneur Madelaine Scott.

The 19-year-old owner of Madelaine’s Organic Eggs, based in Melbourne, Australia, is seeking to raise at least A$60,000 on Pozible to purchase an egg-grading and cleaning machine for her 900-plus flock of hens.

In addition to the initial bitcoin donation, CoinJar has said that it will match any contributions made in the digital currency by its user base, up to an additional A$10,000.

In a statement on its website, the company cited the success of the dogecoin NASCAR crowdfunding project, which fielded $50,000 to sponsor driver Josh Wise, as a driving factor behind the initiative, saying:

“If r/dogecoin can sponsor a NASCAR, surely we can help Madelaine get her business to the next level.”

How it works

The exchange says customers can make donations to Scott directly through Pozible, while finalizing the transaction with CoinJar.

After going through an approval process on Pozible, users can opt to pay with BTC. CoinJar notes that customers need to input a valid return address in case the crowdfunding project does not meet its goal.

Pozible then gives the user the option to sync with their CoinJar wallet. Once redirected to the wallet service, the user finalizes the payment and their pledge is authorized.

The fundraiser ends on 26th May, and to date, Scott has raised more than $45,000. Like other crowdfunding platforms, donations through Pozible earn users scaled rewards that, in this case, include egg shipments and weekend getaways at the organic farm.

Digital currency’s crowdfunding potential

CoinJar growth strategist Samuel Tate told CoinDesk that the company was drawn to Madelaine’s business because of her entrepreneurial spirit and her ability to quickly grow her home-spun business.

Additionally, it proved an opportunity to see the impact of bitcoin on targeted crowdfunding projects.

Tate said that:

“Bitcoin allows the costs of money transfer to be reduced, which makes micro payments more feasible. Previously small transactions were not practical due to paypal and credit card costs. Bitcoin makes it possible for more platforms like Pozible to reduce their costs of money and pass these benefits onto people like Maddy.”

Scott agreed, telling CoinDesk that bitcoin’s role in crowdfunding may very well grow in the future, saying the digital currency “will become more versatile over time”.

Additionally, bitcoin donations could serve as a way for people to avoid some of the fees traditionally associated with sending money between parties.

She added that she has seen a noticeable impact since CoinJar began its donation drive. Further, she said that a potential egg client has expressed interest in purchasing orders using bitcoin exclusively.

Bitcoin growth

Australia has emerged as one of the more active areas for bitcoin businesses in recent months.

Last week, Australia-based VC firm Future Capital launched a US$30m global investment fund for bitcoin companies, while cashless ATM provider Diamond Circle introduced a bitcoin debit card.

Australia’s regulators have not been as enthusiastic toward digital currency, however. The country’s central bank, the Reserve Bank of Australia, suggested in a document published in late April that bitcoin poses a “limited” risk to the country’s existing payments infrastructure.

The report went on to add that bitcoin’s “appeal of low fees and fast transaction times” would likely not form the basis for broader adoption.

Image via CoinJar