February 27, 2023

Ukraine Received Crypto Donations Worth $70 Mln Since Start of War

Ukraine Received Crypto Donations Worth $70 Mln Since Start of War Featured Image

Since the beginning of the Russian invasion of Ukraine on February 2022, crypto donations to Ukraine reached more than $70 million, showing the role of cryptocurrencies in supporting the war-torn country in defending its territories. 

In a report, blockchain data platform Chainalysis said the majority of the crypto funds, which Ukraine received came in the form of Ether and Bitcoin. Ether donations to Ukraine reached $28.9 million, while Bitcoin donations recorded $22.8 million in addition to $11.6 million in Tether. 

The non-fungible tokens (NFTs) also played a role in supporting Ukraine as the country received donations in form of NFTs following UkraineDAO’s auction of a Ukrainian flag NFT, which was sold for $6.1 million. 

Chainalysis found that about 80% of the $70 million of donations came in the first few months of the war as well as the speedy cryptocurrency payments which the country received to face the Russian invasion. 

In this regard, Ukrainian Deputy Digital Minister Alex Bornyakov explained in an interview with Yahoo Finance: “If we used the traditional financial system it was going to take days […] We were able to secure the purchase of vital items in no time at all via crypto, and what is amazing is that around 60% of suppliers were able to accept crypto, I didn’t expect this.” 

Meanwhile, Alona Shevchenko, co-founder of Ukraine DAO, said the crypto donations provided solutions at a time the Ukrainian financial system faced restrictions, especially after the introduction of limits on foreign currency transfers in and out of Ukraine, adding the crypto fund contributed to covering the Ukrainian army’s needs, a matter which confirms a tweet by Mykhailo Fedorov, Ukraine’s vice prime minister and minister of digital transformation in August on this matter. 

In September 2022, Chainanalysis found that the Ukrainians are the third-highest adopters of cryptocurrencies, following Vietnam and the Philippines.

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