- Raising funds for the army
- The donations started even earlier
- The effect of politics on cryptocurrency prices
On February 24 and 25, the Ukrainian army received generous crypto donations.
Cryptocurrency researcher Elliptic reports that Come Back Alive, a Ukrainian NGO that raises cryptocurrency funds for the national army, has received digital tokens for the amount of over 400 thousand U.S. dollars. The average donation size is between one and two thousand dollars, and over 317 donations have been transferred in the last two days.
Jessica Symington, head of research at Elliptic, says that the donations keep coming and their contribution is expected to increase. The donations have poured in as pro-Ukraine communities and crypto groups on social media accounts including Facebook and Twitter have called for help.
On February 8, Elliptic published a report stating that non-governmental organizations and volunteers have been using crypto crowdfunding to collect funds for the Ukrainian army in preparation for a potential conflict with Russia for quite some time. They have raised more than 570 thousand U.S. dollars over the past twelve months. The funds were donated to the national army, cyber activist groups, and other organizations. Elliptic says that it has been tracking donations by monitoring the cryptocurrency wallets used by various entities.
According to the above-mentioned report by Elliptic, a sharp increase in the number of cryptocurrency donations is a sign that digital assets have “emerged as an important alternative funding method, allowing international donors to bypass financial institutions that are blocking payments to these groups.”
According to Symington, when Crimea joined Russia in 2014, both sides promoted their crowdfunding campaigns involving crypto donations but were not able to raise significant funds.
Since that time, cryptocurrencies have become popular in both countries. Moreover, Ukraine is currently one of the world’s top jurisdictions for crypto. According to a report published by blockchain data platform Chainalysis in October 2021, Ukraine ranks number four in crypto adoption, while the amount of crypto going in and out of the country on an annual basis exceeds 8 billion U.S. dollars.
Last week, the national government passed a bill to legalize crypto which will be the first step on the way to a crypto regulation and management framework.
Prices on the crypto market have dropped over the past two weeks . The value of the crypto market has decreased by over 150 billion U.S. dollars.
On February 23, the Ukrainian Ministry of Defense opened a bank account for donations to the country’s armed forces. Nevertheless, the authorities have said that they will only be able to receive fiat money and not donations in crypto or PayPal payments.