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Ukraine raises $54 million as bitcoin donations surge amid Russian war

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A group of local residents is seen standing in front partially-empty shelves in a grocery store in Kyiv (Ukraine), March 3, 2022.

Mykhailo Markiv | Reuters

Donations made in crypto currencies like bitcoin ethereumAs the second week of war against Russia begins, thousands flood into Ukraine.

According to data from Elliptic, more than 102,000 cryptocurrencyasset donations totaling $54.7million have been made to Ukraine’s government since February 24, when Moscow invaded. Gavin Wood (founder of the lesser-known cryptocurrency polkadot) made a $5.8 million donation to this raise.

The week saw a significant increase in donations with approximately 72,000 making their first donation within the last 24 hours. Contributions total $18.2 Million in Ethereum, $17.2 Million in Bitcoin, and $9.5 Miillion in U.S. dollars-pegged stablecoins. An anonymous $1,000,000 donation in Tether was also received. It is a controversial token that can be tied to USD.

The Ukrainian government is now accepting donations in cryptocurrency. All donations were accepted until Saturday had to travel via traditional payment channelsHowever, the government decided on February 26 to be more creative.

Twitter accounts belonging to the Ukrainian government began to solicit cryptoasset donationsIt was the first time. This was after the country had experienced a severe drought. central bank cracked down on digital money transfersIn connection with the nationwide declaration of martial laws.

Since they bypass financial institutions which might prevent payments to Ukraine, cryptocurrencies like bitcoin have grown in popularity.

Elliptic reports that over 96,000 crypto donations were received by the addresses of bitcoin, Ethereum, Tron, Pokadot and Dogecoin in tweets. This total of donations to the government amounts to $46.7 Million.

“Cryptocurrency is particularly suited to international fundraising because it doesn’t respect national boundaries and it’s censorship-resistant — there is no central authority that can block transactions, for example in response to sanctions,” said Elliptic’s chief scientist, Tom Robinson.

Also, donations of NFTs or nonfungible tokens have risen.

One CryptoPunk NFT worth over $200,000 was sent to the Ukrainian government’s ethereum account, and Elliptic says that a single transaction worth $1.86 million looks to have come from the sale of NFTs originally intended to raise funds for Wikileaks founder Julian Assange. 

In the meantime, UkraineDAO auctioned off an NFT of the Ukrainian flag for $6.5 million in ether, making it among the most expensive NFT ever sold. Elliptic states that proceeds will be donated to Come Back Alive.

Even though cryptocurrencies offer new avenues to cash to a country facing a major offensive they pale in comparison to international cash flows into the country via allies such as the U.S.

Additional to this, $350 million that the White House authorized in military aidUkraine: The Biden administration asking Congress for $10 billionIn immediate assistance to support humanitarian supplies and security forces as well as the economy of Ukraine and its central European counterparts. USAID is providing interim assistance. pledged another $54 million in humanitarian aidKyiv.



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