Tag Archives: bitcoin

Can NFTs Help HBCUs Close The Endowment Gap?

Black people lived right by the railroad tracks, and the train would shake their houses at night. I would hear it as a boy, and I thought: I’m gonna make a song that sounds like that. – Little Richards

The individual, familial, community, and institutional wealth gaps between African America and all other groups continues to widen. Despite the consequential donations from Mackenzie Scott and Michael Bloomberg in 2020 to HBCUs it is simply not enough consistently and overwhelming enough to put out the fire. That fire being the HWCU-HBCU endowment gap, which is over $100 to $1 – and widening. Ironically, African America is often standing there with a water hose in their hand watching their house burn while waiting on their neighbor to bring a bucket of water over and help. Why do we say African America has the water hose? By HBCU Money estimates, African America’s tuition revenue value to all colleges is worth $60 billion annually – only $6 billion of that goes makes it way to HBCUs. There are 100 plus HBCUs, but only two have institutional banking relationships with African American owned banks. In other words, there are things that if we just looked inwardly there would be substantive change happening. Instead, we continue to wait for the “lottery” of other’s grace to befall upon us. And to that point, one of the greatest financial opportunities of our lifetime maybe falling upon us to use a resource within our institutions – our creativity.

It is no secret that African American creativity drives American culture. African American creativity has and is often exploited to the social and financial benefit of other groups. There maybe no greater example of that than hip-hop (and the music industry in general) where African American musicians created a genre of music that is now global in reach, but very little of it is actually owned by African Americans. Enter, the internet. Enter, NFTs. The internet is not flat nor is it democratized – after all even on the internet all of the mediums like Amazon, Facebook, Alphabet, Twitter, Square, etc. none are owned by African Americans. However, there is an increasing amount of decentralization that seems to be taking root in pockets of the World Wide Web where opportunities can be staked out. For instance, had an HBCU endowment in July 2011 purchased 5,000 bitcoins which at the time were $13.91 for a total of $69,550, then that HBCU today would have a value of $330 million today. To the best of our knowledge, there are no HBCUs holding bitcoin or any other cryptocurrencies in their portfolio. And while there is still plenty of time to add cryptocurrencies to the portfolio, there is also a new opportunity that one could easily argue is the equivalent of buying cryptocurrencies ten years ago. The NFT.

NFTs or non-fungible tokens are “Non-fungible” more or less means that it’s unique and can not be replaced with something else. For example, a bitcoin is fungible — trade one for another bitcoin, and you’ll have exactly the same thing. A one-of-a-kind trading card, however, is non-fungible. If you traded it for a different card, you’d have something completely different.”, says Mitchell Clark from The Verge. NFTs also work off the Ethereum blockchain, Ethereum being a cryptocurrency and blockchains are a digital distributed, decentralized, public ledger that exists across a network. So what can be a NFT? Again, Mitchell Clark from The Verge, “NFTs can really be anything digital (such as drawings, music, your brain downloaded and turned into an AI), but a lot of the current excitement is around using the tech to sell digital art.” NFTs are already showing their potential. A 14-year old girl made over $1 million from selling 8,000 NFTs according to Business Insider. The most expensive NFT sold to date went for $69 million at Christie’s. An amount that would still be greater than any donation ever given to an HBCU. Now imagine unlocking the creativity that exist on HBCU campuses with students, faculty, and staff.

This could ultimately be a win-win for everyone involved if setup properly. HBCUs can provide the space, hardware, infrastructure, and other support needed while students, faculty, and staff can provide the immense creative capital that we know. Unlocking African America creativity on campuses could quite literally means tens if not hundreds of billions into African American families, communities, and HBCUs. The incentive for HBCUs to invest in this infrastructure is simple. Financially more stable graduates, improved retention rates, potentially higher alumni donor rates, and a new stream of income for endowments.

Students could see themselves earning enough to reduce or eliminate student borrowing costs. An immense hinderance to HBCU graduates creating generational wealth for themselves and their family. This barrier to wealth also is something that it could be argued contributes to poor alumni donor giving at HBCUs. HBCU donations of significance often come from older HBCU alumni who tend to wait and give a large donation either at the end of life or through their estate once they have passed on. HBCU students on a whole as reflecting in HBCU Pell Grant numbers are coming from far more low-income backgrounds their PWI counterparts. Brookings reports that almost 60% of HBCU students expect $0 in family contributions (graph below) to their education as opposed to less than one-third for non-HBCU students. On the other end less than 6 percent of HBCU students expect their family to contribute at least $19,300 to their education versus over 20 percent of non-HBCU students. This means that despite HBCUs on average costing significantly less than their PWI counterparts, HBCU students are still more likely to graduate with student loan debt and significant student loan debt loads. The most recent HBCU Money report showing that 86 percent of HBCU graduates finish with debt and a median of over $34,000 in student loan debt versus 40 percent and $24,000 in student loan debt for those coming from Top 50 endowed colleges and universities.

For HBCUs, the previous mentioned is great for their long-term sustainability, but in this case there is a huge financial reward to be had by HBCU endowments today. By providing the infrastructure, helping ensure the intellectual property rights, and more – HBCUs can create financial partnerships with students, faculty, and staff. This means that in the same way there is NIL (name, image, likeness) happening in collegiate sports, HBCUs too could use these partnerships as a means to recruit more African American faculty who often cringe at the pay rates at HBCUs. It also means that if a student, faculty, or staff produces an NFT for example that sells for $100,000, then potentially on a 50-50 split that the HBCU’s endowment just increased by $50,000. There is also the opportunity to have a foray into the entrepreneurship that is already taking root in the NFT as well as the supporting properties that will support it as an industry and asset class. As we mentioned, intellectual property attorneys in this new age will become even more valuable. There are currently six HBCU law schools who could create a focus on both IP and on digital IP in particular and those schools would be rewarded handsomely by being at the forefront of the curve. Simply put, there is just too much opportunity and money that has yet to even scratch the surface of value for HBCUs to not get involved in NFTs.

The acute importance of closing the endowment gap must be at the forefront of HBCU alumni conversations if our institutions are to be sustained into the next Millenia. It must be if we are to take serious the closing of the individual and institutional wealth gaps for African America. More importantly if HBCUs are to move beyond simply surviving and into empowered institutions that are truly able to serve the social, economic, and political interest of African America and the Diaspora, then having the institutional wealth and endowments necessary to do so is paramount. Climbing this mountain will be no easy task, but we can simply look at the wealth that has been created by our labor and our creativity as an enduring possibility of possibility. This time we must be the ownership of that creativity and protect its ownership at all costs.

HBCU Money™ Dozen 8/11 – 8/15


Did you miss HBCU Money™ Dozen via Twitter? No worry. We are now putting them on the site for you to visit at your leisure. We have made some changes here at HBCU Money™ Dozen. We are now solely focused on research and central bank articles from the previous week.


Password killers: 7 futuristic authentication systems DARPA is funding l Network World http://ow.ly/AkRMd

First Solar Ships Modules To Australia’s Largest Solar Power Project l Clean Technica http://dlvr.it/6cVS6R

Hackathon generates ideas, strengthens ties, promotes fun l Livermore Lab http://1.usa.gov/1sZ56eB

From toilet to tap: could you get over the yuck factor and treat your own dirty water at home? l New Scientist http://ow.ly/Aksbz

Zero Waste project in Maryland l Reduce In Motion http://ow.ly/AkSyy

The biggest iPhone security risk could be connecting one to a computer l CSOonline http://bit.ly/1rvLR9J

Federal Reserve, Central Banks, & Financial Departments

Wall Street returns to buying risky mortgages? l Housing Wire http://hwi.re/6cVQdL

How one credit union formed a unique partnership in order to boost commercial lending l CU Journal http://bit.ly/1qa8sH0

What happens when governments behave like entrepreneurs? l World Economic Forum http://wef.ch/1oCBpij

Bitcoin vs. the dollar l Cleveland Fedhttp://ow.ly/AkV3d

Peer-to-peer lending is poised to grow l Cleveland Fed http://ow.ly/AkWsU

Elementary teachers: Use our lessons with trade books to teach economics, and personal finance l Econ Lowdown http://bit.ly/1roY81A

Thank you as always for joining us on Saturday for HBCU Money™ Dozen. The 12 most important research and finance articles of the week.

HBCU Money™ Dozen 2/3 – 2/7


Did you miss HBCU Money™ Dozen via Twitter? No worry. We are now putting them on the site for you to visit at your leisure. We have made some changes here at HBCU Money™ Dozen. We are now solely focused on research and central bank articles from the previous week.


What does space travel have to do w protecting human health + the environment? l US EPA http://go.usa.gov/BZPm

Could giant mixers offer a “stirring” solution to one lake’s algae problem? l IL-IN Sea Grant http://fb.me/2F8VMiUkn

Kelp off California coast to be tested for Fukushima radiation l CA Sea Grant http://ow.ly/tmAAw

2013 Wind Energy Installations Stall In U.S., Surge In China l Clean Technica http://dlvr.it/4smFjR

Bitcoin: read everythng you need to know about the future of money in our special l New Scientist http://ow.ly/tlTKO

Surveying Sandy-impacted fisheries, marina industries l NY Sea Grant http://ow.ly/tk18w

Federal Reserve, Central Banks, & Financial Departments

Using agriculture as a teaching tool to give children a hands on learning experience l Council 4 Econ Ed http://ow.ly/tmnbe

How people in their prime working years have fared since the recession l Atlanta Fed http://goo.gl/TMRGLu

Gender gaps in labor force participation rates and unemployment rates across the world l St. Louis Fed http://bit.ly/1b2dBKn

What might SE employment look like in 2014? Recent survey data l Atlanta Fed http://goo.gl/jtD3JF

Senate rejects unemployment bill l Floor Action http://bit.ly/LUkxDu

Pre-K Remains Hot State Policy Topic l Council 4 Econ Ed http://ow.ly/tlNQ9

Thank you as always for joining us on Saturday for HBCU Money™ Dozen. The 12 most important research and finance articles of the week.

HBCU Money™ Dozen 12/2 – 12/6


Did you miss HBCU Money™ Dozen via Twitter? No worry. We are now putting them on the site for you to visit at your leisure. We have made some changes here at HBCU Money™ Dozen. We are now solely focused on research and central bank articles from the previous week.


Fighting the world’s largest landfill starts at the local level l California Sea Grant bit.ly/1hAqDG9

CIOs Say Cost, Complexity Impede True Mobile Gains in Enterprise l CIOonline trib.al/64qXmKx

This clever microbe steals its neighbour’s electricity to make methane l New Scientist http://ow.ly/rumQE

2 million stolen login credentials discovered for Facebook, Google, LinkedIn, Twitter, other sites l CSOonline http://ow.ly/rumV6

China bans banks from trading in Bitcoin e-business l ComputerWorld http://ow.ly/run8y

Obama says iPhone is insecure; DoD agrees l ComputerWorld http://ow.ly/runz9

Federal Reserve, Central Banks, & Financial Departments

Helping cities access private financing & achieve low-carbon l World Bank http://wrld.bg/rsRmk

New EPR study investigates the effect of the recession and federal stimulus on New Jersey schools l NY Fed http://bit.ly/1bjlnhv

Sales of new one-family houses in US jumped in October l St. Louis Fed http://bit.ly/1cbJH6i

Economy has grown steadily w/ GDP growth averaging over 2%, 7 million new jobs, low inflation l Atlanta Fed http://goo.gl/OVfknT

Worldwide, 50% of youth are either working outside the formal economy or not up to their full potential l World Bank http://bit.ly/1dz3Ppo

Average price for new houses sold in the U.S. rose by 2.5 percent in October to $321,700 l St. Louis Fed http://bit.ly/19hQ5rQ

Thank you as always for joining us on Saturday for HBCU Money™ Dozen. The 12 most important research and finance articles of the week