Ukraine Collects More Crypto Than Russia In War Year, Analysis Reveals –
The two sides of the bitter conflict in Ukraine have relied on crypto assets and technology to support their military and humanitarian activities, Elliptic says in a report. According to the Blockchain-forensics firm, the affected nation has attracted more digital asset donations than the invading power.
have supporters of Ukraine cryptocurrencies worth over $212 million
Both Russia and Ukraine have used blockchain technology to secure funding for their war efforts since Russian forces attacked on Feb. 24, 2022, Elliptic revealed in a report examining the evolving role of cryptocurrencies in the conflict. The study is based on data compiled by the crypto analytics company over the past year.
On the anniversary of the invasion, the company said that “many campaigns have attempted to leverage core developments in the crypto ecosystem to support their fundraising – from decentralized finance (defi) to crypto prepaid cards.” Digital cash has been used for a variety of purposes, from humanitarian causes to funding sanctioned groups.
Analysis of transactions tracked by Elliptic shows that the bulk of the money, $212.1 million worth of crypto assets, went to support Ukraine. Anti-government organizations in Belarus, a close political and military ally of the Russian Federation, attracted $0.7 million.
Pro-Russia groups have raised around $4.8 million for the Russian military and associated militias. According to the report, more than 10% of these donations came from illegal sources. These include dark web markets, sanctioned companies, and stolen credit card providers, the authors detail.
At the same time, less than 2% of cryptocurrencies donated to Ukraine came from these types of sources, Forklog noted in its reporting. The crypto news outlet also noted that since May 2022, activists supporting Russia increased their funding and more in June Bitcoin and Ethereum collected than the Ukrainians.
Between late February and late September, pro-Russian companies raised around $400,000 in crypto, according to a study conducted by digital asset compliance and risk management firm TRM Labs. In July, blockchain intelligence firm Chainalysis announced that 54 such groups collectively obtained over $2.2 million worth of cryptocurrency.
Ukraine’s Digital Minister claims that the majority of military suppliers accept crypto
Many of the crypto funding initiatives on the Ukrainian side were supported or initiated by the Kiev government, which received $83.3 million in its own wallets. Defi, non-fungible tokens (NFTs) and Decentralized Autonomous Organizations (DAOs) have played a significant role in facilitating crypto fundraising for Ukraine, attracting over $78 million in donations, Elliptic pointed out, adding that Russian attempts to emulate Ukraine’s success in this area , have failed to do this.
Speaking to Yahoo Finance UK’s The Crypto Mile podcast, Ukraine’s Minister for Digital Transformation Alex Bornyakov revealed that his country has purchased military equipment using crypto, claiming that 60% of suppliers accepted, in digital Currencies to be paid to supply Ukraine with essential goods such as helmets and bulletproof vests.
According to the report, more than 100,000 people have sent crypto to Ukraine, and Bornyakov said donations have fluctuated “from a dollar value to millions of dollars.” He pointed out that when the war started, Ukraine turned to crypto because they needed immediate help. “If we used the traditional financial system, it would take days,” he explained.
Do you think the two warring factions will continue to rely on crypto donations to fund their military and humanitarian efforts? Do share your thoughts on this topic in the comments section below.
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Source: Crypto News Deutsch
