Ukraine crisis: Crypto funding a watershed moment for war-torn nation

moneycontrol.com:

For a country whose armed forces would be dwarfed by the Russian military, Ukraine has resorted to creative means to help mount a strong resistance against the attacks by its neighbour.

Ukraine, the second-largest country in Europe after Russia, launched a crowd funding initiative on February 26 and has raised more than $46 million in cryptocurrency donations alone, according to analytics firm Elliptic.

While Bitcoin and Ethereum made up most of the donations, some have sent non-fungible tokens (NFTs). Subsequently, Ukraine’s Vice Prime Minister Mykhailo Fedorov announced on March 3 the country’s plan to launch an NFT collection and use the proceeds to support efforts in the war against Russia.

This move effectively broadened the East European country’s crowd funding initiative to cover most crypto assets and experts said it is a further nod to the potential of cryptocurrencies to act as a mechanism for financial transactions.

Pratik Gauri, CEO of 5ire Chain, says this is a classic example of how crypto, especially NFTs, are helping Ukraine’s government.

“Three kids in London named Isaac Kamlish, Nathan Cohen and Isaac Bentata — ages 23 to 25 — gathered around their laptops earlier this week and helped launch the first-ever sale of one-of-a-kind digital collectibles by a national government,” Gauri said, adding that what is astonishing is that by selling more than 1,200 NFTs, the three helped the government of Ukraine raise about $600,000 to help fund its defence against Russia.

Also Read | Crypto fund for Ukraine: How cryptocurrencies are funding Ukraine’s fight against Russia

War bonds

He said old school techniques like war bonds have raised significant funds as well. Kyiv has hauled in roughly $1 billion from war bonds sold