Why Ukraine’s >5 Million Bitcoin, Ether, USDT Donations Matter

As civilians in Ukraine take up arms and build Molotov cocktails, crypto donations are pouring in from supporters around the world to aid military and relief efforts. With the battle turning both physical and cyber, it’s time to watch the action on the blockchain.

Friends in need. † †

Ukraine’s official Twitter account — formerly known for its scenic photos of the country and historical trivia — recently shared addresses to accept Bitcoin, Ether and USDT donations. As one of the top five countries on the Chainalysis Global Crypto Adoption Index 2021, this was no surprise.

However, the response was both complex and overwhelming.

If we look at the Bitcoin blockchain data for the linked address, we can see that more than 33 BTC or about $1.3 million was sent to the address. The address has since sent seven BTC.

Source: blockchain.com

In addition, Etherscan shows that the second address has received about 1,636 Ether or about $4.4 million in donations.

However, it’s important to remember that these are not the only organizations and resources that solicit donations.

In addition, others like Tron founder Justin Sun have also sent money. For his part, Sun donated $200,000 USDT on the Tron blockchain.

Source: ether scan

In fact, Ethereum founder Vitalik Buterin also promoted UkraineDAO – a project to “sell” the country’s now famous blue-and-yellow flag to raise money for civilian efforts.

Crypto donations are more than a publicity stunt in the war between Russia and Ukraine. Following the National Bank of Ukraine’s suspension of e-money transfers, some have argued that they have no choice but to use crypto.

A gassy pursuit?

One thing to be questioned here is Ethereum’s popularity as a means of raising money – despite skyrocketing gas prices. Both ConstitutionDAO and AssangeDAO faced the same challenges when raising donations. It remains to be seen how UkraineDAO will minimize the loss of funds from gas taxes.

Meanwhile, an NFT rally on OpenSea aimed at raising funds for Ukraine has resulted in gas costs soaring to more than 1,300 gwei on Ethereum. Though praised for raising money, the group – RELI3F UKR – has also been criticized for the high profits miners received in the process.

Later, however, on February 26, the gas price dropped back to 55.69 Gwei.

Life Hack: Don’t Get Hacked

Vitalik Buterin initially shared his doubts about the crypto addresses posted on Ukraine’s official Twitter account. Many even feared that the account might have been hacked by Russian cybercriminals or that incorrect addresses had been provided.

Buterin soon claimed that some Ukrainian sources had assured him that the addresses were legitimate.

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