Over the weekend, as Russia’s invasion intensified, Ukrainian officials issued an unexpected appeal on Twitter: send us your cryptocurrency. Online wallet addresses for Bitcoin, Ether, and Tether, three of the most prominent cryptocurrencies, were published in a series of tweets issued from official accounts. According to statistics given by the blockchain tracking firm Elliptic on Monday evening, Crypto investors have donated more than $22 million worth of digital assets to the Ukrainian government and a nonprofit supporting the country’s military since then.
Crypto investors have donated more than $22 million
The turmoil in Ukraine has brought the burgeoning cryptocurrency industry under increased attention, with politicians and regulators concerned that the digital tokens could be used by Russian firms and government officials to circumvent sanctions. However, as more traditional crowdfunding techniques face challenges, cryptocurrency has created a way for investors all across the world to quickly shift funds to Ukrainian soldiers.
Come Back Alive, a Kyiv-based nonprofit that has raised funds to arm and train Ukrainian armed men had a page on the crowdfunding website Patreon taken down last week. Patreon claimed the page had broken its rules against military support.
However, Come Back Alive now has a new source of funding: UkraineDAO, a crypto collective founded last week by crypto enthusiasts who collaborated with the Russian protest band Pussy Riot. UkraineDAO announced it had raised more than $4 million in cryptocurrency for Come Back Alive, according to a spokeswoman.
Come Back Alive member Nadya Tolokonnikova claimed in an interview that the band had agreed to use the proceeds on medical help for war victims rather than equipping fighters.
“Blockchain allows us to expand our efforts in ways that we couldn’t previously,” Ms. Tolokonnikova said of the decentralized ledger technology that underpins cryptocurrencies. “Sometimes the old means of raising money are incredibly slow and awkward.”
A request for comment from Come Back Alive was not immediately returned. As of Monday evening, the Ukrainian group had raised more than $7 million in cryptocurrencies, according to Elliptic. Elliptic reported that the Ukrainian government had received $15.4 million in cryptocurrency contributions.
In the perspective of the struggle, the gifts are insignificant. Ukraine’s defense budget was around $4 billion last year; Russia’s military budget is more than ten times that.
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