Vasalgel project received a donation of $13,000 in bitcoin from an anonymous source last month. However, the donation was declined due to BitPay’s transaction limit and was sent back to the project’s payment processor.
Vasalgel, a male contraceptive project posted on Reddit in the year 2014 that it has started accepting donations in bitcoins. The Parsemus Foundation that develops the project uses BitPay for bitcoin donations. Last month, it received bitcoin donation which was rejected because it hit BitPay’s $10,000 limit.
In its Facebook post, the project announced, “OMG, someone just tried to donate $13,000 of Bitcoins to support Vasalgel development, but it was declined because it's over the $10,000 daily limit! Bitcoin is totally anonymous, so we can't contact them to let them know they can split the donation. Whoever you are, please try again!”
Cointelegraph.com reported that it is not possible to tell who sent the donations due to bitcoin’s pseudonymous and distributed nature. It cannot invalidate the transaction nor reverse the invalidation. The limit of $10,000 has been since raised so that attempts of donations in the future will not be returned.
Wall of Coins CEO Robert Genito questioned Vasalgel refusal of donations saying that it only represents a challenge presented to bitcoin users who go through a third-party platform like BitPay following financial regulations. He questioned saying, “Just hold onto the coins and not allow the customer to use them until the customer supplies more information on their business. Who's to say the donator has access to that private key still? Who's to say the donator doesn’t have to jump through hoops to get that donation back – such as the case where the donation was sent from an institutional market? Who's to say the donator is going to feel as generous after the price jumped up?”
The donor has not been identified yet. Vasalgel is a male contraceptive project and a polymer gel injected into the vas deferens. Vasalgel is being developed as a “social venture,” a company that makes enough money to stay afloat, with affordable pricing and wide availability as its mandate.
