After a cryptocurrency fall disrupted the Ukraine’s fundraising efforts in May, which has been pummeled by the war. It expects to continue to harness crypto investors to help collect funds.
The cryptocurrency fall was caused by Russia’s invasion of Ukraine on February 24, 2022. Resulting in the Ukrainian government requesting cryptocurrency donations on social media. Mykhailo Fedorov, Ukraine’s Vice Prime Minister, attended the World Economic Forum in Davos this week.
The government said on March 19 that they had raised more than $60 million in cryptocurrencies. However, according to Ukraine’s deputy minister for digital transformation, Alex Bornyakov, the total raised two months later, on May 19, was $51.5 million which is a result of the cryptocurrency fall.
In recent weeks, cryptocurrency prices have plummeted rapidly. Following a 17 percent decrease in April, Bitcoin lost more than 20% of its value in May, illustrating the risks faced by investors of the extremely volatile assets.
The government was able to spend $45 million of the money raised in the “Aid for Ukraine” to fund equipment for Ukraine’s army before the fall, according to Bornyakov in written responses to Reuters inquiry.
Ukraine has used cryptocurrency to help support its war effort. Bitcoin donations to Ukrainian volunteer groups have risen the year before leading up to the war. Government forces were able to use them to supply the army. While cryptocurrency may bring some much-needed revenue, Kyiv has calculated that it would require $15 billion in the coming three months to assist its war-torn economy to recover.
Despite the volatility, crypto-assets continue to attract Ukrainians looking to raise capital.
Cryptocurrency Fall and NFT For Water Supply
Obolon, Ukraine’s largest independent beer brand, intends to sell NFTs to distribute free water for humanitarian needs. The goal is to follow the footsteps of Ukraine’s Ministry of Digital Transformation, which raised 286 ether with the “Museum of War” NFT collection. This is another effort to avoid the current cryptocurrency fall situation.
After the conflict, Obolon proposes to sell 5,000 NFTs for 0.1 ether (about $200) each. The trade can also use in exchange for a commemorative beer bottle.
Since there is no clear sign of whether the war will escalate quickly or not, Ukraine’s fundraising is critical for this matter. Furthermore, the rapid decline in cryptocurrency value makes this approach much more difficult to meet its goal.
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