Crypto Donations To Ukraine Nearing $70M – Chainalysis Report
According to a recent report by Chainalysis, Ukraine has seen an enormous influx of crypto donations totaling nearly $70M. The figure could even be as high as $200M.
What’s most interesting about this report is that part of the funds supports pro-Russian organizations. This update is a considerable development, showing that the Ukrainian government has found a way to leverage cryptocurrency and its underlying blockchain technology to fund its causes.
Crypto Contributions Surge 1 Year After Start of Ukraine-Russia Conflict
Cryptocurrency contributions have increased a year after the Russia-Ukraine conflict began, with crypto donations still streaming in. Chainalysis, a blockchain analytics company, released a research paper regarding the impact of cryptocurrency in Ukraine one year after the war started.
Per the report, as of February 2023, around $70M in crypto donations had been pledged to help Ukraine. Most of these donations were in Bitcoin and Ethereum, with Ethereum being the most popular, making up about 41% of the sum, Bitcoin contributions being 32.5%, and Tether (USDT) donations making up 16.5%.
Despite efforts by global regulators and bankers to impede the progress of the cryptocurrency industry, it continues to show its usefulness. Cryptocurrency can be an excellent tool for charitable donations, as it is much quicker and more cost-effective than traditional banking methods when sending funds across borders.
Apart from digital currencies, there have been contributions in the form of non-cashable tokens (NFTs). UkraineDAO’s sale of a Ukrainian flag NFT yielded $6.5M for the country’s war campaigns.
Ukraine’s Reliance On Crypto Persists
Meanwhile, Chainalysis stated that these contributions were insignificant compared to fiat donations. Yet, they displayed “the charity of cryptocurrency devotees worldwide and Ukraine’s willingness to accept a vast array of digital assets.”
In Ukraine, the emerging cryptocurrency market serves as a dependable value storage. Moreover, it has the potential to bolster financial autonomy and lower transaction costs between countries.
Furthermore, these cryptocurrency contributions will aid in war efforts, further fostering adoption and aiding the economy, which the conflict has hindered. According to reports, the total amount of cryptocurrency given to pro-Ukraine causes could be significantly higher than previously believed.
According to research from crypto analytics firm, Elliptic, these causes received more than $200M worth of cryptocurrency. An analyst from Elliptic claimed that Ukraine was “wise” to offer donation addresses shortly after the invasion, as this has proven to be a successful strategy.
According to recent reports, Ukraine has been acquiring military armaments using cryptocurrencies. In addition, Chainalysis compared the number of crypto donations sent to Ukraine with those for Russia-related causes.
It discovered that roughly 100 pro-Russia groups had received $5.4M after a full year of the war, less than 8% of the crypto donations given to pro-Ukraine organizations. Moreover, according to findings, centralized exchanges have received over 87% of the money assigned to pro-Russia entities.
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