How cryptocurrency donations helping Ukraine

By Srikanth
3 Min Read

Cryptocurrencies have taken out as a part of the ordinary role in the Ukraine war. Cryptocurrencies are helping the government in raising millions of dollars to facilitate the funding in the fight against the Russian military offensive.

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Why is Ukraine faced with cryptocurrencies?, and How is the developing crypto industry changing its goodwill and having an impact over the clouds of war?

How many currencies have been raised by Ukraine?

Apart from the conflict circumstances, the addresses for two crypto wallets on their Twitter account have been shared by the Ukrainian officials, giving donors a straight and clear address of the needy ones.

The crypto wallets have attracted more than $10.2 million (€9.2m) just after four days of the invasion.

Since then, around more than $100 million cryptocurrency has already been elevated, with the Crypto Fund for Ukraine being run by the CEO and founder of the Ukrainian crypto exchange Kuna, Michael Chobanian that also accounts for around 60% of all donations.

As observed by Mr Chobanian 37, they are still collecting the currencies. The funds are utilized to overcome aid like daily rations and bulletproof vests and helmets.

On an initial basis, a set of two funds have already been raised- one for humanitarian purposes and the other to support the Ukrainian military.

Furthermore, after the violence climbed across the different parts of the Ukraine, the funds were merged and concentrated fully on supporting the military aspects.

According to the report by the AFP, the larger ratio of crypto donations arose in the form of Bitcoin, Ethereum and stablecoin Tether, which is also a limited coin one-to-one to the dollar.

What are the advantages of taking donations in the form of crypto?

Aid packages sent to Ukraine in fiat money from countries like the US and the EU dwarf cryptocurrency donations.

A US crypto charity, The Giving Block, also used to believes that cryptocurrency donations have the potential to attract some of the “younger donors” who are more of the time willing to support several causes across the different sector.

Another key reason why crypto donations are of greater value is that they are less governed by some of the factors which include the geopolitical or macroeconomic.

Another benefit of the transactions is the speed of the money transfers. Bank transactions may take up to a day to get verified and validated between two countries. Furthermore, cryptocurrency takes less period of time to transfer.

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