Locals are seen in front of partially empty shelves in a supermarket in Kyiv, Ukraine, March 3, 2022.
Mikhail Markiv Reuters
Donations in cryptocurrencies such as bitcoin and etherium are pouring into Ukraine as the war with Russia enters its second week.
Since Moscow’s invasion on February 24, more than 102,000 donations of cryptocurrencies totaling $ 54.7 million have gone to the Ukrainian government and Come Back Alive, a non-governmental organization that provides military support, according to new data from the analysis firm. of the Elliptic blockchain. The increase includes a $ 5.8 million donation from Gavin Wood, founder of a lesser-known cryptocurrency called polkadot.
Donations have increased this week, with about 72,000 of these donations coming in the last two days. So far, the contributions consist of $ 18.2 million in ether, $ 17.2 million in bitcoins and $ 9.5 million in a combination of US dollar-bound stablecoins, including an anonymous $ 1 million donation in tetar, a controversial token designed to be pegged to the US dollar.
Accepting donations in cryptocurrency is new to the Ukrainian government. Until Saturday, all donations were to travel through traditional payment channels, but on February 26, the government decided to be creative.
Twitter accounts belonging to the Ukrainian government have been launched ask for donations of cryptocurrencies for the first time. The move came after the country’s central bank imposed measures against digital remittances in connection with a national declaration of martial law.
Cryptocurrencies such as bitcoin have become more popular as they allow consumers to bypass financial institutions that may block payments to Ukraine.
Elliptic says the addresses of bitcoin, ethereum, tron, polkadot, dogecoin and solana, listed on tweets, have received more than 96,000 cryptocurrency donations totaling $ 46.7 million, going directly to the government.
“Cryptocurrency is particularly suitable for international fundraising because it does not respect national borders and is resistant to censorship – there is no central body to block transactions, for example in response to sanctions,” said Elliptic chief scientist Tom Robinson.
Donations of irreplaceable tokens or NFT have also increased.
An CryptoPunk NFT worth more than $ 200,000 was sent to the Ukrainian government’s account in ethereum, and Elliptic says a single $ 1.86 million transaction appears to come from the sale of NFT, originally intended to raise funds for the Wikileaks founder Julian Assange.
Meanwhile, UkraineDAO sold NFT on the Ukrainian flag for $ 6.5 million on air, making it one of the most expensive NFTs ever sold. Elliptic says the proceeds will be donated to Come Back Alive.
But even as cryptocurrencies open new avenues for money for a country struggling with a major offensive, the numbers are fading compared to money flowing into the country from international allies such as the United States.
In addition to the $ 350 million the White House has approved for military aid to Ukraine, the Biden administration is asking Congress for $ 10 billion in immediate emergency aid to bolster humanitarian supplies, security forces and the economies of Ukraine and its Central European partners. Meanwhile, USAID has promised another $ 54 million in humanitarian aid to Kyiv.