Ukraine’s authorities confirm today that they will be giving assistance for Ukraine’s crypto fundraising. This comes from an effort by Cryptopunk NFT that raises more than $100,000 to help the country’s struggle against Russia.
In March, they were able to donate Cryptopunk #5364 to a Ukrainian cryptocurrency foundation. The fund was traded the NFT to a mysterious bidder for 90 ETH yesterday. NFTs are digital or physical property that embodies blockchain tokens.
In a recent tweet, Alex Bornyakov, Ukraine’s Deputy Minister of Electronic Transformation agency, announces the auction. Furthermore, he is in charge of supervising the country’s crypto fundraising throughout the war.
The Latest on Crypto Contributions
They donate the NFT to the AidForUkraine charity a few months ago. Ukraine continues to receive support from the cryptocurrency community. In late February, just after Russian soldiers penetrate the country, Ukraine begins to receive crypto and NFT contributions. Since then, they say that the country accumulates more than $135 million in cryptocurrencies. This is through crypto pledges and the selling of NFTs that they give.
A crypto organization collected $6.75 million for the Ukrainian military effort in early March by selling a single NFT of the Ukrainian flag. The Ukrainian rap ensemble Kalush Orchestra will be trading off their trophy to generate over $1 million in ETH for the foundation a few weeks ago.
They will use cryptocurrency funds to acquire non-lethal military goods for Ukraine, such as protective jackets and medical supplies. The Ukrainian government does not really hold or spend the monies.
This is only an endorsement and oversight of the project. The fund’s banking system is run by the Ukrainian cryptocurrency exchanges Kuna.
They offer 5,500 bulletproof jackets, 500 ballistic covers for body armor, and 500 helmets to the Ukrainian Army utilizing such funding. They also obtain 3,125 thermal imagers and lenses, 60 two-way radios, 3, 2427 medications, and more than 400,000 meals.
Ukraine’s Crypto Adoption During the War
Ukraine’s wartime use of cryptocurrency offers a case study of the potential benefits of using cryptocurrency in geopolitical situations. This happens when moving fiat cash is difficult.
They also pinpoint possible disadvantages. Russia might avoid economic sanctions by mining cryptocurrency, according to the International Monetary Fund. The technique hasn’t been generally observed, according to US Treasury Secretary Janet Yellen.
This warning came with a proviso from the international organization. They claim that the proportion of mining in such nations indicates that the size of flows has a limit. However, there are still threats to financial integrity.
Furthermore, the present crypto bear market has completely exposed crypto and NFT contributions. The price of Ethereum has dropped about 70% in the previous ten weeks, severely limiting the fundraising possibilities of NFT collections like Cryptopunks.
The Cryptopunk that they sell yesterday raises a little over $100,000 for Ukraine’s military budget. Thus, the same value of ETH would’ve been worth almost $267,000 on the same day the NFT contributes in March.
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