Ukraine collected $212 million in crypto since war broke out, study shows
The conflict between Ukraine and its invading power Russia has been going on for a little over a year, with no end in sight.
Both sides have relied on every available resource to support their military and humanitarian activities, and it appears that crypto-assets and technology have become the latest tools in their arsenal.
A recent report by Elliptic, a blockchain forensics company, revealed that both countries have accepted donations in the form of digital assets.
However, the report also showed that the targeted nation, Ukraine, has attracted more digital asset donations than the intruder.
Since Russian forces invaded Ukraine on February 24, 2022, both sides have used blockchain technology to raise funding for their military campaigns, according to a recent report from Elliptic.
Image: Center for Strategic and International Studies
The report, which delves into the ever-changing role of cryptocurrencies in the ongoing conflict, draws on data collected by the crypto analytics company over the past year.
In a stunning revelation, the latest analysis of transactions tracked by Elliptic has revealed where the bulk of crypto assets have flowed in the ongoing conflict.
Elliptical Report: $212 million in crypto for Ukraine
A staggering $212.1 million worth of digital assets has been channeled to support Ukraine, while anti-government organizations in Belarus, a staunch political and military ally of the Russian Federation, received just $0.7 million by comparison.
The findings shed light on the staggering scale of the conflict and the enormous pressure both sides are under to secure funding to run their military campaigns.
About $5 million has been collected in cryptocurrency donations by pro-Russian organizations, including those that support the Russian military and affiliated militias.
Other organizations, including some with ties to sanctioned groups, have tried and failed to replicate Ukraine’s achievements with NFTs and DeFi.
The chain analysis findings: $70 million in crypto
Meanwhile, on the one-year anniversary of Russia’s invasion of Ukraine, a new study by Chainalysis revealed that the Ukrainian government had received just $70 million in crypto donations during the conflict.
The blockchain data platform highlighted how the government had effectively leveraged cryptocurrencies, particularly Bitcoin (BTC) and Ethereum (ETH), to support their war effort.
Crypto total market cap at $1 trillion on the weekend chart | Chart: TradingView.com
In the face of the chaos and destruction caused by the Russian invasion, Ukraine was able to turn to cryptocurrencies for a glimmer of hope. The speed of crypto payments would prove to be a decisive factor in the country’s ability to respond to the conflict, according to Ukraine’s deputy digital minister, Alex Bornyakov.
In a recent interview with Yahoo Finance, Bornyakov explained how the ability to receive crypto donations had accelerated the country’s ability to respond to the invasion, giving a much-needed boost to their military campaign.
The donations poured in during the first months of the war, with approximately 80% of the total $70 million in crypto funds received during this period.
– Featured image from Foreign Affairs
