Ukraine Has Garnered Over $35 Million in Crypto Donations Through Several Organisations, DAOs So Far

While the likes of El Salvador have embraced crypto, this is the first time direct donations have funded a world government.

Ukraine Has Garnered Over $35 Million in Crypto Donations Through Several Organisations, DAOs So Far

Photo Credit: Reuters

Ukraine is among the first nation to accept crypto donations as a result of a war

Highlights
  • A number of DAOs have also been set up for more focussed efforts
  • Ukraine's government reached out for crypto donations on February 26
  • Elliptic has tracked more than 35,000 transactions so far

Amid Russian military threats across the country, Ukraine had asked for help from the crypto community back on February 26. Since then, it has managed to rake in upwards of $35 million (roughly Rs. 265 crore) in crypto donations to support its civilians and troops. The Ukrainian government initially opened up to donations in Bitcoin, Ether, and Tether (USDT). On March 1, it added Polkadot to the list too. Tom Robinson of Elliptic, a firm that tracks cryptocurrency transactions, states that most donations so far have been in Bitcoin and Ether while a number of people have also sent non-fungible tokens (NFTs) to the Ukrainian government's Ethereum account.

Elliptic, in a blog post, states that Ukraine has received 35,000 donations so far, including $5.8 million (roughly Rs. 45 crore) from Gavin Wood, the British programmer who co-founded Ethereum. The firm also notes that there have been several other donations of more than $1 million (roughly Rs. 7.5 crore).

That said, Elliptic, which also helps law enforcement track cryptocurrency transactions to combat money laundering, warns of scammers tricking unsuspecting cryptocurrency holders wanting to donate to Ukrainian causes.

While it isn't public information yet as to how Ukraine's government has been deploying funds gathered through crypto donation, Michael Chobanian, founder of Kyiv-based crypto exchange Kuna, appears to be a central figure in the fundraising effort for Ukraine so far. Chobanian has helped set up two charitable funds to aid Ukraine's war effort and war-affected population. The Crypto Fund of Ukraine was set up two days ago and has primarily been used to buy food, gas, medical supplies, and firearms for civilians and to help evacuate people.

The second wallet, which is coordinated by Ukraine's Ministry of Digital Transformation, is funding the army. Chobanian's exchange platform Kuna, meanwhile, is assisting the government in converting crypto to fiat money, as “the government doesn't know how to properly manage the crypto,” he said in a statement to CoinDesk.

There are other organisations that have also added to Ukraine's crypto donation causes, set up as charity projects and decentralised autonomous organisations (DAOs) for more directed efforts. UkraineDAO, a DAO created to raise funds for Ukraine, was created earlier this week by Nadya Tolokonnikova, a founding member of the “conceptual protest art group” Pussy Riot, alongside Trippy Labs and members of PleasrDAO.

Another fundraiser called Support Ukrainian Sovereignty claims to have raised over $500,000 (roughly Rs. 4 crore) to date, while NGO Come Back Alive, which was suspended by crowdfunding platform Patreon for “funding military activity”, has raised “several million dollars” in crypto, as per Elliptic.

In an initiative to support donations in several other altcoins — including NEAR, Binance Coin (BNB), Binance USD (BUSD), Solana, Polygon, and others — activists in the blockchain community have also created a charity project named the Unchain fund. Since its launch, the fund has raised more than $1.8 million (roughly Rs. 13.5 crore) in cryptocurrencies. The funds were mostly raised through NEAR token donations.

At the time of publishing, an updated figure from blockchain security firm SlowMist shows that accumulated crypto donations to Ukraine's cause have already shot beyond the $50-million (roughly Rs. 375 crore) mark.


Do Samsung's Galaxy S22 and Tab S8 series have any Android competition? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Shomik Sen Bhattacharjee
Shomik is a senior sub-editor at Gadgets 360. As someone who's screened the consumer tech space for the past four years, he's now shifted focus to the crypto-verse. When not converting currency values in his head, you may find him in an intense five-a-side football match or grinding out the newest Destiny 2 weekly challenge on his Xbox. You can reach him for tips or queries at ShomikB@ndtv.com. More
Amazon Luna Officially Launched in US With Free Games for Prime Members, New Features
Share on Facebook Tweet Snapchat Share Reddit Comment google-newsGoogle News

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2022. All rights reserved.