Business

Crypto-powered relief aid to Ukraine

The people of Ukraine need the world’s help more than ever. As the conflict between Russia and Ukraine rages on, the world must rally behind the Ukrainian government to bring peace and stability back to the Eastern European nation.

The crypto community has done just that, with Nonfungible Token (NFT) companies, Decentralized Autonomous Organizations (DAOs) and crypto users around the world leading efforts to help Ukraine with Bitcoin donations (Bitcoin), ether (ETH), Dot pattern POINT and even NFTs.

It is impressive how quickly the crypto community has rallied behind the Ukrainian people. Two days after the Russian military entered Ukrainian territory, the Ukrainian government solicited crypto donations on Twitter, sharing Bitcoin and Ethereum wallet addresses. Deputy Prime Minister of Ukraine Mykhailo Fedorov Confirmed on his Twitter account that the appeal for donations was genuine and called on people to stand with the nation.

The crypto community rushes to defend Ukraine

Shortly after Ukraine’s Deputy Prime Minister tweeted the government’s crypto addresses, Crypto started to compress into the wallets of the Ukrainian government with unprecedented speed. In fact, Ukraine ranks fourth in the Global Crypto Adoption Index compiled by data firm Chainalysis, which estimates that around $8 billion worth of cryptocurrencies enter and leave the country annually. According to the New York Times, the daily transaction volume of cryptocurrencies is around $150 million, exceeding the volume of interbank exchanges in hryvnia.

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First, the Ukrainian government raised $4 million, then $13 million, then $37 million by March. Days later, the total sum of cryptos hijacked by the Ukrainian government totaled over $55 million. And just recently, Ukraine’s government announced that it had received crypto donations totaling “nearly $100 million,” according to Alex Bornyakov, Ukraine’s deputy minister at the Ministry of Digital Transformation and de facto crypto spokesman for the Government. Ukraine reached $108 million a week agoas tracked by Cointelegraph.

This is clear evidence that the crypto community is doing exactly what it’s been trying to do since day one – move capital effortlessly, seamlessly, and cheaply with no intermediaries, because its users believe this is the right thing to do. The crypto community around the world has shown their support for peace, stability and, frankly, the people of Ukraine with their massive donations.

Related: NFT philanthropy shows new ways of giving back

From an economic point of view, the multi-million dollar cryptos sent to the Ukrainian government could be the breakthrough. It is clear evidence that the people are behind Ukrainian President Volodymyr Zelenskyy. Crypto’s ability to remove bureaucratic hurdles is one of the best ways to provide instant services to the Ukrainian people as they need help more than ever. That’s what Bitcoin was made for – to move capital freely to where it’s needed.

NFTs, DAOs and Web3 communities come to the rescue

NFT platforms, DAOs and other players in Web3 development have shown the world what they stand for by donating everything from crypto to NFTs to the Ukrainian government.

Related: Fight economic warfare with Crypto’s double-edged sword

The folks behind Bored Ape Yacht Club (BAYC) donated $1 million in ETH to the Ukrainian government. The BAYC team donated the funds to BAYC community members, who also raised nearly $1 million in donations for Ukraine. Additionally, Everstake, a Ukraine-based decentralized staking provider, sent the first tranche of the $1 million grant to Ukraine, donated by the wider Solana community.

There are countless examples of NFTs and DAOs chasing the Ukrainian government’s request of someone transferring over $200,000 worth of CryptoPunk #5364 to UkraineDAO’s Ethereum wallet in Ukraine Raised over $6 million via an NFT sale to help Ukrainian citizens. DAOs and NFT companies have made their position clear – they are against the war and want the Russian invasion to end as soon as possible.

Crypto: The Future of Cause Support?

During this tragic situation in Europe, we saw that blockchain enabled us to scale our efforts in ways that were simply not possible before. The old ways of raising money were slow, expensive, and often fraught with fraud and corruption.

The limitless form of money has changed the way people donate money to causes they want to support. With Bitcoin and other cryptos, donors can be 100% sure that the causes and campaigns will get the funds. All you need is the wallet address and send the crypto to that address. They can go to the blockchain like Etherscan and see their donation – giving all donors peace of mind that their funds have been credited to the recipient.

Related: Is the Ukraine War Putting Regulatory Pressure on Crypto Firms?

Bitcoin and other cryptocurrencies have proven to be the cheapest, fastest, and safest way to conduct financial transactions around the world. The Ukrainian government can safely store crypto without worrying about an invading power stealing it from them or their financial system collapsing due to the war. To be clear, for Ukraine, digital coins have lived up to their reputation for easily moving money across international borders.

This article does not contain any investment advice or recommendation. Every investment and trading move involves risk and readers should do their own research when making a decision.

The views, thoughts, and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Raymond Hsu is co-founder and CEO of Cabital, a cryptocurrency wealth management platform. Prior to co-founding Cabital in 2020, Raymond worked for fintech and traditional banking institutions including Citibank, Standard Chartered Bank, eBay and Airwallex.