Bitcoin Donations Surge For Ukrainian Army, People Have Given Over $400,000 In Crypto

The average amount of donation is $1,000 to $2,000, and the group has received at least 317 individual donations in the past two days, said reports

Ukraine’s Ministry of Defence has also set up a designated bank account to accept donations for its troops in legal currencies. Image: Getty

New Delhi: As Russia began military operations in Ukraine on Thursday, people all over the world started donating the Ukrainian army in cryptocurrencies to support them financially, according to news report.

New data from blockchain analytics company, Elliptic, shows that over a 12-hour window on Thursday, about $400,000 in bitcoin was donated to Come Back Alive, a Ukrainian non-governmental organisation (NGO) providing support to the armed forces.

The average amount of donation is $1,000 to $2,000, and the group has received at least 317 individual donations in the past two days, said reports.

Pro-Ukraine groups and pro-crypto communities on social media platforms such as Twitter and Facebook have also contributed.

Activists have deployed the crypto for a variety of purposes, including equipping the Ukrainian army with military equipment, medical supplies, and drones, as well as funding the development of a facial recognition app designed to identify if someone is a Russian mercenary or spy, CNBC said.

The surge of donations in cryptocurrencies signifies that digital assets have “emerged as an important alternative funding method, allowing international donors to bypass financial institutions that are blocking payments to these groups,” according to Elliptic.

Their analysis shows that hundreds of crypto-asset donations totalling several hundred thousand dollars have been made to these groups, increasing by over 900 per cent in 2021.

Elliptic has identified several cryptocurrency wallets used by these volunteer groups and NGOs, which have collectively received funds totalling just over $570,000, much of it over the past year.

The Ukrainian Cyber Alliance has received close to $100,000 in Bitcoin donations over the past year. Ukraine’s Ministry of Defence has also set up a designated bank account to accept donations for its troops in legal currencies.

Top cryptocurrencies such as Bitcoin, Ether, Cardano, Solana were in the red as Russian forces invaded Ukraine. Bitcoin prices plunged nearly 9 per cent, slipping to one-month low of $35,000, according to Coindesk data. The second-largest cryptocurrency, Ether, was trading at $2,339, down over 12 per cent on Thursday.

While Dodgecoin was down by over 12 per cent, Shiba Inu fell by over 10 per cent. Polkadot fell by over 10 per cent, and Polygon dropped by over 12 per cent. XRP was down by over 9 per cent, reports said.