Crypto enthusiasts have donated millions of dollars in virtual currency in support of Ukrainian groups since the invasion of Russia in the country on February 24.
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Among the high-profile personalities such as Vitalik Buterin, Justin Sun, and Gavin Wood have all called for support or made personal pledges. Decentralized autonomous organizations (DAOs) have raised sufficient funds to support those in need, with the local government getting in on the act via social media, calling for donations in Bitcoin (BTC), Ethereum (ETH), and Tether, among others.
Ukraine, considered a relatively tech-savvy country, has for long already been on the radar of crypto enthusiasts, as the country boasts crypto-friendly laws and regulations. Further measures have also been issued by the government in past years to help grow the tech industry which saw more than $ 6.8 million in information technology exports in 2021, according to the Wall Street Journal.
Ukraine’s Path Towards Digitization
According to the Chainanalysis Global Crypto Adoption Index, Ukraine, among other high-ranking crypto-ports such as Vietnam, India, and Pakistan, has been forging a path towards digitization, setting up new regulations that provide fraud prevention for citizens.
The popularity and feasibility of crypto in the country have now helped it to spark the interest of enthusiasts and crypto investors to assist with digital currency donations and pledges during the ongoing conflict.
Although the current situation has placed a lot of stress on international financial systems, the growing acceptance of digital assets has now made it easier for non-government and nonprofit organizations to work with tech-based pledges. Meanwhile, FTX Crypto exchange has offered local citizens $ 25 if they register on their platform, as central banks and currency markets have been temporarily suspended, which has banned foreign currency transactions.
This has highlighted yet again the importance of businesses and nonprofits to transition into the digital space. A report by Infoxchange Group revealed that around 97% of charities struggled during the height of the COVID-19 pandemic as a result of not being technologically adapted.
In recent years since the outbreak of the pandemic, charities managed to rapidly adapt and change their direction, and now some well-known organizations including the Red Cross, United Way, Electronic Frontier Foundation, and Heifer International, among others are leading the change, both digitally and philanthropically.
Digital assets have now become an important milestone for various charities facing cross-border conflicts or internal problems. Using a decentralized system of technology enables nearly any person or private company to easily transfer or donate towards a charity of their choice.
Crypto Leaders Grow Awareness For Charities And DAOs
Allowing better access, and more structured regulation has enabled some of the biggest “crypto leaders” to assist and grow awareness for charities and DAOs. In a recent turn of events, Ethereum co-founder, Vitalik Buterin asked his more than 3.4 million Twitter followers to consider donating to one of the various DAOs directed at assisting personnel and government entities during the Ukrainian crisis.
It’s now become so much easier for any charity or nonprofit to raise the funds they need. Well-known grantmaker, Fidelity Charitable received among the most cryptocurrency donations in 2020, with more than $ 28 million reportedly received.
While Fidelity Charitable seeks to distribute all of its donations, private foundations, such as the Tron Foundation set up by Justin Suncreator of Tron Blockchain, were able to donate more than $ 200,000 USDT to local government accounts in Ukraine. This prompted others to follow, with more than $ 712,062 USDT donated within 24 hours according to Sun.
Large Scale foundations and pledges aren’t just the only routes available to increase awareness of dire financial aid. Well-known Munchcoin, a nonprofit seeking to alleviate water scarcity and food shortages, raised around $ 2.7 million in charity coins. These coins, such as the more than $ 5 million donated by Polkadot founder Gavin Wood, provide cross-border transactions, and legitimate transparency for both the donor and the receiver.
While crypto and digital remain at high focus, social media has played a vital role nonetheless, enabling widespread communication to millions of users all at once. Through platforms such as LinkedIn and Twitterhigh-profile crypto startups, such as Crypto.com can quickly round up millions of community members, creating awareness for charities such as the International Committee of the Red Cross.
Throughout the growing digital market, Non Fungible Tokens (NFTs) have also been able to make a major humanitarian impact. To ensure more adaptability, an organization set up by NFT and Web3 artists, RELI3F, has now started humanitarian aid, which sparked major interest from artists on OpenSea to do the same.
Digital currencies and assets have enabled us to connect philanthropy with technology which aids charities and nonprofits during a time of need and distress. The use of cryptocurrency has proved its weight tenfold through a global catastrophe that is now witnessed by every nation.