Ukraine will issue irreplaceable tokens to finance the armed forces Ukraine

Ukraine has announced it will issue irreplaceable tokens to fund its armed forces as cryptocurrency becomes an increasingly popular means of supporting the government in Kyiv.

Mikhail Fedorov, Ukraine’s deputy prime minister, said on Twitter on Thursday that the government would soon issue an NFT to help pay for the army.

NFT provides ownership of a unique digital item – with works of virtual art that are proving to be particularly popular – to its buyer, even if that item can be easily copied. Ownership is recorded in a digital, decentralized register known as a blockchain.

Fedorov did not elaborate on the NFT, but said the government had canceled earlier plans to reward cryptocurrency donors with airdrop, a free digital token commonly used by the crypto community to encourage participation in a project.

The move comes after Ukraine’s call for donations of cryptocurrencies exceeded $ 50 million (£ 38 million) after Fedorov posted a request for donations in bitcoins, ethereum and theater on Twitter last week.

The appeal has already raised $ 54.7 million for the Ukrainian government and a Ukrainian NGO, according to Elliptic, a blockchain data and analysis company. Most of the money went to the government, with a smaller amount sent to Come Back Alive, an organization that funds “real-time needs to protect Ukraine.”

According to Elliptic, there have been more than 102,000 donations of cryptocurrencies since the invasion began last week, including a $ 5.8 million donation from Gavin Wood, the British co-founder of the blockchain platform Polkadot. Elliptic added that a $ 1.86 million donation appears to come from the sale of NFT, originally intended to raise money for Julian Assange, the founder of WikiLeaks. CryptoPunk NFT worth $ 200,000 has also been sent to the Ukrainian government.

“Most of the donations received so far have been in bitcoin and ether, although stable US dollar coins contribute a significant share,” Elliptic said this week. However, the company added that fraudsters also appear to be raising funds by luring consumers who are trying to donate to Ukrainian causes.

NFT’s global market reached $ 25.5 billion last year, according to DappRadar, a company that tracks sales, rising sharply from just $ 100 million in 2020. The rising value of NFT has sparked warnings from skeptics that token obsession carries everyone distinctive features of a speculative bubble. DappRadar’s head of finance and research, Modesta Masoyt, said Ukraine’s move was a “turning point” in cryptocurrencies and blockchain technology.

Ukraine has also raised significant sums through conventional means. Last week, she raised £ 200m from the sale of military bonds and is in talks with the International Monetary Fund and the World Bank to raise additional funds.