Ukraine crypto donations hit $100 million

Cryptocurrencies have proven to be a major boon to Ukraine as it struggles in its war with Russia. The country has to date received over $100 million in crypto donations.

This data excludes NFTs (themselves a major source of Ukraine crypto money), and comes from Tradingplatforms.com. Ironically, just before the war started, Ukraine cracked down hard on illegal crypto farms, on the basis of the drain they placed on the electricity grid.

Since then the nation passed the Virtual Assets Law, allowing a legal framework around crypto operations in the country. This was done explicitly in recognition of the importance that digital assets were proving to be for Ukraine in the war effort.

A mixed blessing?

There are questions about whether crypto is superior to other forms of donation within the context of war. Significantly, crypto assets remain highly volatile. Just today, reports show that $215 billion have been wiped off the global value of crypto due to a large crash. Within an already volatile situation, volatile currency can complicate the use of digital assets to purchase critical supplies.

Additionally, crypto scams are a big problem, and there is the ever-looming potential for scammers to prey on the population of Ukraine. With the government being so proactive in legitimising crypto, the sense of security that comes from official support for digital assets could have some significant impacts on those fleeing the country, or those trying to survive within devastated areas.

Nonetheless, the outpouring of support from the crypto community is undeniable, and the Ukrainian government is certainly grateful for donations, regardless of the form they come in.