More than ever, the people of Ukraine need the help of the international community. The conflict between Russia, Ukraine and other countries continues. The world must support the Ukrainian government in order to restore peace and stability to this Eastern European country.
With non-fungible token (NFT), companies and decentralized autonomous organisations (DAOs), the crypto community has helped to make this happen. Crypto users from all over the globe are leading the effort for Ukraine aid with donations of Bitcoin (BTC), Ether(ETH), Polkadot’s DOT, and even NFTs.
It’s amazing how quickly the crypto community rallied behind the Ukrainian people. The Ukrainian government requested crypto donations via Twitter two days after Russian troops invaded Ukraine. They shared their Ethereum and Bitcoin wallet addresses. Mykhailo Fedorov, Vice Prime Minister of Ukraine, confirmed that the request for donations was genuine and asked people to stand by the nation.
Support the people of Ukraine. We now accept cryptocurrency donations. Ethereum. Bitcoin and Tether (USDTtrc20) BTC — 357a3So9CbsNfBBgFYACGvxxS6tMaDoa1P ETH — 0x165CD37b4C644C2921454429E7F9358d18A45e14 USDT (trc20) — TEFccmfQ38cZS1DTZVhsxKVDckA8Y6VfCy
— Mykhailo Fedorov, @FedorovMykhailo, February 26, 2022
The crypto community jumps on Ukraine’s defense
After the vice prime minister of Ukraine tweeted the addresses of the government, crypto began to flow into the wallets of the Ukrainian government at incredible speeds. According to Chainalysis data, Ukraine is fourth in the Global Crypto Adoption Index. This index estimates that approximately $8 billion worth cryptocurrency enters and leaves the country each year. According to the New York Times the daily volume for cryptocurrency transactions is around $150 million. This figure exceeds the volume of interbank trades in the Hryvnia.
The first was $4 million. Next came $13 million and then $37 million. The total crypto raised by the Ukrainian government was $55 million within days. Alex Bornyakov (de facto crypto spokesperson and deputy minister for Ukraine at the ministry digital transformation) announced that the Ukrainian government had received crypto donations totalling close to $100 million. Cointelegraph reported that Ukraine reached $108 million last week.
This is a clear sign that the crypto community is doing what they’ve been trying since day one: to move capital seamlessly, seamlessly, and cheaply, as its members believe it is right to do. With its large donations, the crypto community around the world has demonstrated that it supports stability, peace, and, to be honest, the peoples of Ukraine.
Similar: NFT Philanthropy shows new ways to give back
The millions of dollars of crypto that was sent to the Ukrainian government could prove to be a breakthrough in economic terms. This is a clear sign that people support Volodymyr Zelenskyy, the Ukrainian president. The ability of Crypto to eliminate bureaucratic red tape makes it one of the most effective ways to immediately provide service to the Ukrainian people. They need our help more than ever. This is why Bitcoin was created: to move capital where it’s needed, without any obstacles.
The rescue comes to NFTs, DAOs, and Web3 communities
DAOs, NFT platforms and other players in Web3 development have demonstrated the world who they are by donating everything crypto to NFTs to Ukraine’s government.
Related: Fighting economic war with crypto’s dual-edged sword
Bored Ape Yacht Club (BAYC), donated $1 million in Ethereum to the Ukrainian government. The funds were donated by the BAYC team to match BAYC members who raised nearly $1 million for Ukraine. Everstake, a Ukrainian-based provider of decentralized staking, also sent $1 million in the first tranche of financial assistance to Ukraine. This was donated by the extended Solana family.
It has been inspiring to see our community unite in support of Ukraine. Nearly $1m in Ethereum was donated by wallets that contain a BAYC ecosystem NFT. Today, we are matching it with a $1m ETH gift of our own.
— Bored Ape Yacht Club (@BoredApeYC) March 8, 2022
There are many examples of NFTs or DAOs supporting the request of Ukraine government. These include someone who transferred CryptoPunk #5364 worth more than $200,000 into Ukraine’s Ethereum wallet, to UkraineDAO raising $6 million through an NFT sale to help Ukrainian citizens. The position of DAOs and NFT firms has been clear: they oppose war and want to see the Russian invasion stop as soon as possible.
What is the future of supporting causes in crypto?
We have discovered that blockchain can be used to scale up our efforts during this difficult time in Europe. The traditional methods of raising money were slow and expensive, and often fraught with fraud and corruption.
This new form of money is a non-transferable and has revolutionized the way people donate money to charities they support. Donors can be sure that their funds will reach the campaigns and causes they support with Bitcoin and other cryptocurrency. They just need to know the address of the wallet and then send the crypto to it. They can log in to Etherscan to see the donation and provide peace of mind for all donors.
Related: Does the Ukraine War increase regulatory pressure on crypto-firms?
Bitcoin and other cryptocurrency have proven to be the most cost-effective, fastest, and secure way to transact financial business around the globe. The Ukrainian government is able to store crypto safely without worrying about invading forces stealing it or their financial system crumbling due to the war. Let’s not forget that digital coins are able to move money easily across international borders for Ukraine.
This article is not intended to provide investment advice. Every trade and investment involves risk. Readers should do their research before making any decision.
These views, thoughts, and opinions are solely the author’s and do not necessarily reflect the views or opinions of Cointelegraph.
Raymond Hsu, the CEO and co-founder of Cabital, is a cryptocurrency wealth management platform. Raymond Hsu worked in fintech and traditional banks before co-founding Cabital 2020.