Wikimedia Announces an End to Crypto Donations after a 3-Month Debate

Key Insights:

• Wikimedia, behind Wikipedia, officially announces it will no longer accept crypto donations on environmental grounds.
• 71.17% of fewer than 400 users voted in favor of ending crypto donations.
• Technical indicators are bearish, with BTC below the 50-day EMA.

Bitcoin (BTC) mining has been the hot topic of 2022. The China ban on Bitcoin mining has led to a sharp increase in government and regulatory scrutiny over the impact of proof-of-work mining on the environment.

Concerns over crypto mining have led to calls for a ban on Proof-of-Work mining by lawmakers in the EU and the US.

Corporations have also responded to demands for a move away from Proof-of-Work cryptos.

Wikimedia Announces an End to Accepting Crypto Donations

Over the weekend, Wikimedia, the non-profit organization behind Wikipedia, announced an end to accepting crypto donations.

The decision comes in response to Requests for comment/Stop accepting cryptocurrency donations.

According to Wikimedia,

“A little under 400 users participated in the voting and discussion concerning the proposition that the Wikimedia Foundation stop accepting cryptocurrency donations.”

The request for comment was open from January 10, 2022, to April 12, 2022.

Wikimedia noted that arguments in favor of a ban included,

“Issues of environmental sustainability, that accepting cryptocurrencies constitutes implicit endorsement of the issues surrounding cryptocurrencies, and community issues with the risk of the movement’s reputation for accepting cryptocurrencies.”

Common arguments in opposition to a ban included,

“The existence of less energy-intensive cryptocurrencies (proof-of-stake), that cryptocurrencies provide safer ways to donate and engage in finance for people in oppressive countries, and that fiat currencies also have issues with environmental sustainability.”

A total of 232 users, accounting for 71.17% of the total vote, voted in support of the proposal.

The decision follows news of the Mozilla Foundation ceasing to accept Proof-of-Work crypto donations.

In response to a backlash over Mozilla’s position on cryptos, Mozilla updated its policy on Crypto donations.

In April, Mozilla took to Twitter, sharing its updated policy.

An update to our policy on accepting cryptocurrency donations.

We got it wrong, we heard you, and we've evolved. https://t.co/0bSThVJsCC

— Mozilla (@mozilla) April 7, 2022

According to the revised policy on crypto donations,

• Mozilla will no longer accept ‘proof-of-work’ cryptocurrencies, which are more energy-intensive.
• Mozilla will accept ‘proof-of-stake’ cryptocurrencies, which are less energy-intensive, and will develop and share a list of cryptocurrencies we accept by the end of Q2 2022.

Bitcoin Price Action

At the time of writing, Bitcoin was up 0.29% to $38,592.

Technical Indicators

Bitcoin will need to avoid the day’s $38,205 pivot to target the First Major Resistance Level at $38,944. Bitcoin would need broader market support to break out from the morning high of $38,813.

In the event of another extended rally, Bitcoin could test the Second Major Resistance Level at $39,407 and resistance at $40,000. The Third Major Resistance Level sits at $40,616.

A fall through the pivot would bring the First Major Support Level at $37,736 into play. Barring an extended sell-off, Bitcoin should avoid sub-$36,500. The Second Major Support Level at $36,997 should limit the downside.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. Bitcoin sits below the 50-day EMA, currently at $39,058. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also pulled back from the 200-day EMA, BTC negative.

A move through the 50-day EMA would support a return to $40,000.