ukraine-crypto-donation
Ukraine Crypto Donation

Ukraine Crypto Donation: Now Help Can Be Extended Via Cryptocurrency

A DAO (decentralized autonomous organization) has been formed to raise funds for the Ukrainian soldiers who are currently facing the Russian army. The Ukraine crypto donation will be passed on to fund the war and the soldiers the state declared. So if you are wondering where to donate for Ukraine, then this piece of news will help you. 

UkraineDAO, a fundraising effort that is coordinated by members of the Investment team PleasrDAO, which is the NFT (Non Fungible Token) studio Trippy Labs, and also the Russian art collective Pussy Riot has already raised more than $3 million in crypto tokens that are based on Ethereum. 

Ukraine Crypto Donation: How The Scenario Works

The official Twitter account of the Ukrainian government on Saturday posted two addresses of two varied crypto wallets where one accepts only Bitcoin and the other accepts Ethereum and Tether, a token that tracks the US Dollar’s value.

As of 27.02.2022 (Sunday), those wallets have received Ukraine crypto donations worth $10.2 million, as per the report from a blockchain analytic firm Elliptic. That is additional to millions of donations from nongovernmental organizations supporting the Ukrainian military in cryptocurrency. 

Nearly money worth  $1.86 million donated to the government of Ukraine was generated via the sale of NFTs (Non Fungible Tokens), which was originally intended to raise funds for WikiLeaks founder Julian Assange. The NFTs are unique digital assets that are designed to portray ownership of virtual products, like video game characters or artwork.

The development illustrates how Ukraine is facing crypto for assistance at the time of Russia’s military offensive in the nation, which started on Thursday.

Come Back Alive, an NGO that offers equipment to the Ukrainian military has started to accept Ukraine crypto donations since 2018. It has till now raised millions of dollars worth of virtual currency since the invasion by Russia started. Total crypto donations received by the Ukrainian government and also the NGOs supporting the military presently stand at $16.7 million, as per the report by Elliptic. According to Tom Robinson, the chief scientist of Elliptic, 

“Cryptoassets such as Bitcoin have emerged as an important alternative crowdfunding method. They allow quick, cross-border donations, which bypass financial institutions that might be blocking payments to these groups.”

Come Back Alive had its own Patreon fundraising page that was suspended this week, with the company stating that it 

“does not allow any campaigns involved in violence or purchasing of military equipment.” 

Patreon allows users to receive a monthly income via paid subscriptions.

The Ukrainian military primarily suggested that it could not accept funds in virtual currencies on BTC, with a statement on the official website of the government stating,

“National legislation does not allow the Ministry of Defense of Ukraine to use other payment systems (‘Webmoney,’ ‘Bitcoin,’ PayPal,′, etc.).”

But now the government seems to have relaxed this stance. Separately on Sunday, Mykhailo Fedorov, the Ukrainian Minister of Digital Transformation called on important crypto exchanges to block payments to the Russian users. He said, 

“I’m asking all major crypto exchanges to block addresses of Russian users. 

It’s crucial to freeze not only the addresses linked to Russian and Belarusian politicians but also to sabotage ordinary users.”

The U.S, Canada, and European allies on Saturday agreed to cut off several Russian banks from the Swift Network, which is the interbank messaging system. They also agreed to safeguard the central bank of Russia from deploying its international reserves in formations that may undermine sanctions.

Ukrainian Flag NFT: Ukraine Crypto Donation Widened

Prior to the ban, Come Back Alive was accepting the U.S dollar donation for funding the Ukrainian military, in a letter illustrating its decision to block the crowdfund, Patreon quoted some sections of the official website of the organization, which signified, 

“financ[ing] and train[ing] military personnel.”

The letter further added that the entity has refunded all the donations that they have received, something that cannot be done in the case of Ukraine crypto donations. Shevchenko termed Patreon’s policy as “delusional”. She said,  

“If you put yourself in the shoes of a soldier who is running out of basic weapons, who’s not well equipped, who’s not properly cared for, who’s sacrificing his life, and you’re telling us, ‘Oh, sorry, you can’t donate to him because it’s against our rules – to me, it’s a crime to do that.”

This weekend, the decentralized autonomous organization (DAO) released a one-of-one NFT of the Ukrainian Flag, which it now wishes to buy (from itself) with the funds that have been donated. It is all occurring via the fractionalized bidding service PartyBid, which enables for group NFT buys. Donate to the organization that ends up winning the auction, and you will get a set of ERC-20 tokens which is proportionate to what you put in. 

This is a complex process because of the fact that $LOVE could have original value; a contribution to UkraineDAO is as much a charitable donation as making an investment in $LOVE tokens, which can be sold and bought on decentralized exchanges like Uniswap.

The DAO is also providing money to the NGO Proliska and has suggested it might offer it to the Red Cross. So you can donate for Ukraine Red Cross. But the way Shevchenko views it, the contributions are ideally used militarily. She says, 

“All our help, realistically, needs to be thrown for the army. If you don’t stand up for our army right now, we will have no civilians to help.”

The Bottom Line

Researchers at a blockchain firm state that the Ukrainian government, volunteer groups, and NGOs have raised money after advertising their Ukraine Bitcoin donation address via Twitter. Over 4,000 Ukraine crypto donation have been made so far, with an anonymous donor offering BTC worth $3 million to an NGO. The median donation as of now is $95. You can donate to Ukraine from Ireland and also from other parts of the world.

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