The Ukrainian army is getting millions of dollars in donations in cryptocurrencies, according to new data from Elliptic.
A single $3 million donation was made early Friday, the day after the invasion began.
On Thursday alone, one organization received over $675,000 in the virtual currency, and by Friday morning, that number had ballooned to more than $3.4 million, thanks to a single donation of $3 million.
Volunteer groups have been involved in the conflict for a long time. The work of the military of Ukraine has been augmented by these organizations. In the case of the ousting of the pro-Russian president of Ukraine, legions of volunteers stepped up to support the protesters.
Since they allow for quick, cross-border donations which circumvent financial institutions that might block payments to Ukraine, cryptocurrencies such as bitcoin have emerged as an important alternative funding method.
There is no central authority that can block transactions for example in response to sanctions, which is why it is suited to international fundraising.
The Ukrainian army was given military equipment, medical supplies and drones, as well as funding the development of a facial recognition app, if someone is a Russian mercenary or spy.
Robinson of Elliptic, a company that sells tools to banks and some of the world's largest cryptocurrencies platforms, said that crowdfund war is being used with the tacit approval of governments.
Come Back Alive, which began accepting cryptocurrencies in 2018, provides the military with equipment, training services and medical supplies, as well as funding the development of a drone-based targeting system for Ukrainian units.
Other groups supporting the Ukrainian resistance have asked for donations in the form of NFTs.
Cryptocurrency is increasingly being used to crowdfund war, with the tacit approval of governments.
Some Ukrainians are turning to cryptocurrencies as the central bank cracks down on digital money transfers in connection with a nationwide declaration of martial law.
Domestic buyers are paying a premium for theUSDT stable coin, which is pegged to the price of the U.S. dollar, according to Kuna.
We don't trust the government. We don't trust the banking system. Michael Chobanian, founder of Kuna, said in an interview that they don't trust the local currency.
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