Tensions between Moscow and Kiev reached a boiling point when about 70% of Russian forces were on hand for a large-scale invasion. However, the underdogs still have an asset in their hands to crowdfund the looming conflict with Russia.
Ukraine, which is much smaller compared to Russia in terms of economy or armaments, has turned to cryptocurrency for support. Ukrainian non-governmental organizations (NGOs) saw a surge in Bitcoin donations according to a report by blockchain analytics firm Elliptic.
Donations amounted to several hundred thousand dollars to Ukrainian NGOs and volunteer groups. Mainly to get financial support for soldiers, weapons and medical supplies over the past ten years. The chart below shows an increase of more than 900% in 2021.
According to the report,
“Elliptic has identified several cryptocurrency wallets used by these volunteer groups and NGOs, which have collectively received funds totaling just over $570,000 – much of that in the past year.”
Bitcoin emerged as an important alternative funding method, allowing international donors to bypass financial institutions that could block payments to groups. This club/group includes: come back alive† Ukrainian Cyber Alliance and Belarusian cyber partisans
Activists have used the donated crypto for a myriad of purposes. Such as equipping the Ukrainian army with military equipment, medical supplies and drones. He then funded the development of a facial recognition app that would be used to identify Russian mercenaries or spies.
Last year, the Ukrainian Cyber Alliance alone received nearly $100,000 in† † and † However, crypto-related donations still made up a small portion. Most of the funds were fiat currencies through traditional payment systems.
Cryptocurrency has proven to be a robust and increasingly popular alternative over the years. Elliptic’s chief scientist Tom Robinson outlined a few advantages. He thought:
“Cryptocurrency is ideally suited for international fundraising because it does not respect national borders and is censorship resistant. There is no central authority that can block transactions, for example in response to sanctions.”
Overall, Ukraine has had an on/off relationship with digital assets. However, grassroots cryptocurrency adoption continued to make headlines here. Ukraine ranks 1st in the Eastern European region according to the Chainalysis report. In addition, a bill was enacted to legalize payment with cryptocurrency.
This post Ukrainian NGOs Receive Cryptos Worth $570k in Crowdfunding Amid Border Tensions
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