Feb 27, 2023

Ukraine Receives $70M in Crypto Donations during Russian Conflict

The ongoing conflict between Russia and Ukraine has been greatly aided by the influx of cryptocurrencies, with the nation receiving over $70 million since the start of the war.

A recent report by blockchain data platform Chainalysis reveals that the majority of the funds have come in the form of Ether (ETH), Bitcoin (BTC) and Tether (USDT). ETH donors led the way with $28.9 million given, while donors of BTC and USDT chipped in $22.8 million and $11.6 million, respectively.

Nonfungible tokens (NFTs) have also been used to provide financial aid to Ukraine, with UkraineDAO’s auction of a Ukrainian flag NFT selling for $6.1 million.

Alex Bornyakov, Ukrainian deputy digital minister, explained to Yahoo Finance that the speed of cryptocurrency payments fast-tracked the country’s ability to respond to the Russian invasion:

“If we used the traditional financial system it was going to take days […] We were able to secure the purchase of vital items in no time at all via crypto, and what is amazing is that around 60% of suppliers were able to accept crypto, I didn’t expect this.”

Alona Shevchenko, co-founder of Ukraine DAO, added that the Crypto Fund Aid For Ukraine was an “absolute success” and that cryptocurrencies provided a solution when restrictions were imposed on the Ukrainian central banking system.

According to a tweet by Mykhailo Fedorov, Ukraine’s vice prime minister and minister of digital transformation, much of the cryptocurrency payments to the digital ministry have been used to fund the country’s military equipment, armor clothing and a range of vehicles and medicine.

The increased reliance on cryptocurrencies in Ukraine looks to have increased adoption in the country, with a September report by Chainalysis finding Ukrainians to be the third-highest adopters, behind Vietnam and the Philippines.

However, pro-Russian military groups have also used cryptocurrency to crowdfund their war efforts, including using crypto donations to fund military purchases, spread disinformation and create pro-invasion propaganda, according to Chainalysis.

The 100 groups have received a total of $5.4 million over the course of the war, however, incoming donations have fallen considerably since July. It is unclear what impact sanctions had on this downtrend, but a 10th package of sanctions against Russia was introduced on Feb. 24.

Ransomware attacks have also been used to raise funds for political agendas, with a crime report by Chainalysis finding that of the $456.8 million total ransomware payments in 2022, a majority of these funds were taken by “actors” believed to be based in Russia.

The conflict between Russia and Ukraine has highlighted the potential of cryptocurrencies and NFTs to provide financial aid and support to those in need, while also demonstrating the potential of NFT marketing and promotion to raise funds for a cause.

NFTs have become an increasingly popular marketing tool, with many companies and organizations utilizing them to drive engagement and increase awareness of their products and services.

Twitter, for example, has recently launched its own NFT marketing platform, allowing users to create and sell NFTs to promote their tweets and content.

The web3 space is also home to a growing number of NFT marketing agencies and web3 agencies, which specialize in helping companies and organizations create and promote NFTs to help them reach a wider audience and raise funds for their cause.

The conflict between Russia and Ukraine has shown that cryptocurrencies and NFTs can be used to provide financial aid to those in need, and that NFTs can be used to raise funds for a cause. As the use of cryptocurrencies and NFTs continues to grow, so too will the opportunities for companies and organizations to use these tools to promote their products and services and raise funds for their cause.

Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.