The cryptosphere continues to mobilize for Ukraine after the Russian invasion.
Digital currency donations to charities and the Ukrainian military continue to climb. Since Thursday, the first day of the invasion, more than $5 million in cryptocurrency has already been raised, according to last data rom blockchain analytics firm Elliptic.
"Cryptocurrency donations to the Ukrainian military are soaring," Elliptic posted on Twitter.
In a blog post, the firm added that: "Following the Russian invasion of Ukraine, NGOs and volunteer groups in the country have raised at least $5.1 million from 2,750 cryptoasset donations" as of February 26 at 11:00 GMT.
The day before, the counter was at $4 million.
Sam Bankman-Fried, the young billionaire and CEO of cryptocurrency FTX, whose valuation hit $32 billion recently, announced that the cryptocurrency exchange had given in cryptocurrency the equivalent of $25 to every Ukrainian.
"We just gave $25 to each Ukrainian on FTX," Bankman-Fried wrote on Twitter. "Do what you gotta do."
Crypto Allows for Easy Transfers
Donations are boosted by cryptocurrency billionaires. According to Elliptic, one non-governmental organization "received a single bitcoin donation worth $3 million." The identity of the donor is not known.
"Volunteer groups have played a critical role in the Russo-Ukraine conflict over the past decade, and they are often very closely linked to the Ukrainian government," explained Elliptic.
"These groups are funded by private donors, who have used bank wires and payment apps to donate millions of dollars," but "cryptoassets such as bitcoin have also emerged as an important alternative funding method."
Donations are being sent in cryptocurrency, especially bitcoin, because "they allow quick, cross-border donations, which bypass financial institutions that might be blocking payments to these groups," Elliptic argued.
These groups include Come Back Alive, which takes its name from the inscriptions on the bullet-proof vests that were its first donations to the army, according to Elliptic.
"Come back Alive provides a range of military equipment, training services and medical supplies. It even funded the development of a drone-based reconnaissance and targeting system for Ukrainian artillery units," added then firm.
But Patreon, a content creator’s membership platform based in California that can also be used as a source of crowdfunding, has announced that it has banned Come Back Alive for violating its policies.
"The website of the organization says they use contributions to finance and train military personnel," Patreon wrote in a statement on its website.
Come Back Alive claims for example to use funds they received for training "350 snipers, more than 2,000 sappers and more than 3,000 gunners, and training is being conducted to train UAV operators,” Patreon said.
"We don’t allow Patreon to be used for funding weapons or military activity. It is a violation of our policies, and so we have removed the page. All remaining funds in the account will be refunded to contributors."
Beware of Crypto Scams
Come Back Alive established in 2014 after the outbreak of a conflict between Ukraine and Russian-backed separatists.The NGO claims to provide armor and medical equipment to Ukrainian fighters.
The night from Friday to Saturday was marked by an intensification of the air raids of Russia on Kyiv, the Ukrainian capital two days after the beginning of Ukraine by Russia.
The U.S and the European Union have already announced an unprecedented package of sanctions against Russia, without taking drastic measures. Russian President, Vladimir Putin, and his minister of Foreign Affairs, Sergei Lavrov, are now targeted, in addition to more than twenty personalities from the business world.
The death toll continues to rise: The Ukrainian health minister said in a Facebook post on Saturday that 198 people had been killed in the fighting, including three children, and 1,115 were wounded, including 33 children. Early Friday, Ukraine's president, Volodymyr Zelensky, had said that at least 137 people had been killed and 316 wounded.
These ongoing battles are generating a proliferation of initiatives to help Ukrainians financially: from traditional means of raising money such as crowdfunding to donations to NGOs, including donations in cryptocurrencies to DAOs, decentralized autonomous organizations that use blockchain technology to raise cryptocurrencies.
Activist and fierce critic of Putin, singer Nadya Tolokonnikova, launched UkraineDao to raise cryptocurrencies for Ukrainians. Tolokonnikova is one of the founding members of the feminist punk rock band Pussy Riot.
"Using the power of web3 tech and community to raise funds for Ukrainian organizations that are helping those suffering from the war in Ukraine," UkraineDao presents itself on Twitter.
"Funds go towards Ukrainian civilians helping those suffering from the war. "Come Back Alive" is one of the most effective and transparent Ukrainian charitable and volunteer initiatives," Pussy Riot explained.
However, Elliptic warns against the scams that have multiplied on social media to take advantage of the situation.
"Scammers appear to be taking advantage of the current situation by tricking unsuspecting users wishing to donate to Ukrainian NGOs," Elliptic warned.
