Ukraine’s Deputy Prime Minister Mikhail Fedorov announced on Thursday that he would begin creating non-fungible tokens (NFTs) to increase resistance to Russia’s aggression, which constitutes the latest effort to use cryptocurrencies.
As the Ukrainian government continues to fight recent aggression, it is seeking cryptocurrency donations as a convenient and effective way to raise funds internationally for military and humanitarian activities. Cryptocurrencies have many advantages that make them uniquely attractive for such international financing activities. Cryptocurrency payments can be sent anonymously, helping to anonymize donors who may prefer to avoid scrutiny of their investment in the Eastern European War. In addition, the nature of cryptocurrency technology makes it very convenient for international remittances and avoids the intermediaries required for such remittances in traditional finance.
A February 8 report by blockchain researcher Elliptic (more than two weeks before Russia invaded Ukraine) reported that the Ukrainian defense and hacking group received $ 550,000 in 2021 compared to just 6,000 the previous year. It was revealed that it was a dollar.more Recent analysis According to Elliptic, Ukraine has raised $ 54.7 million through cryptocurrencies since the invasion of Russia began, below the previous donation rate as Ukraine’s defense has become the Western Cause Celebrity.
Before Thursday, Ukraine was planning a “crypto airdrop”. This is a project to provide cryptocurrency donors with free tokens as an incentive to donate to war effort.
However, on Thursday, Deputy Prime Minister Fedorov announced in a tweet that he would cancel the crypto airdrop project in support of a series of NFTs to raise funds for Ukrainian State’s defense efforts.
“After careful consideration, we decided to cancel the airdrop,” Fedorov said. “Every day, more and more people are willing to help Ukraine counter the aggression. Instead, we will soon announce an NFT to support the Ukrainian army. We have no plans to issue alternative tokens. “
Fedorov did not specify future NFT details.
Fedorov has not identified why the AirDrop project was canceled, but of a promised cryptocurrency called the “Peaceful World” token originating from an unknown entity marked by Etherscan as coming from a problematic address. Possibility of fraud that may be related to the parody.
The withdrawal from the cryptocurrency Airdrop project has caused dissatisfaction among some donors. 95% of them may have offered donations in the amount of 0.001 or 0.01 Ethereum and expected free tokens accordingly.
Last week, Fedorov urged major crypto exchanges to block transactions from Russian users as part of an effort to isolate Moscow from international finance. However, many platforms have refused to implement such bans, allowing cryptocurrencies to continue to flow into Russia.
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Nicholas Dolinger is a business reporter for The Epoch Times and author of the “The Beautiful Toilet” podcast.