The use of cryptocurrency by Ukrainians is an effort to fight back against Russian troops positioned in their country. A blockchain analytics firm Elliptic revealed that Ukrainian crowdfunding had increased 900% since 2021, with most donations coming from within Ukraine itself rather than externally like before when it was funded mainly by other countries or organizations who saw what they called “a crisis.”
These groups have seen a significant rise in cryptocurrency funding thanks to Bitcoin. As a result, digital currency is becoming an alternative channel for donors, despite restrictions imposed by traditional financial systems.
Bitcoin allows people worldwide to make connections and create change that lasts far beyond anyone’s donations – crypto contributions can now harness this power.
In 2021, non-government organizations and volunteer groups received more than $500,000 worth of Bitcoin as crowdfunding. This marked a 900% increase from 2020.
Since the Ukrainian military was effectively crumbling against the Russian invasion, many citizens have taken up arms to fight. They are called “volunteer groups.” They get funding from private donations.
Ukrainian Fundraising Campaigns Receive Crypto Funding
In the modern era, cryptocurrencies are becoming more popular as funding for fundraising campaigns. Elliptic’s study shows that digital currency users can contribute to these types of organizations and receive payment from them more effortlessly than ever before without having any interference or problems with cross-border payments, which makes it very attractive, among other things too.
With the potential of their payments being denied, private donors have turned away from bank wires and app payment systems in favor of Bitcoin. Some fundraising campaigns have had accounts closed before due to financial institution restrictions on certain funds raised through that particular means. Relatively new to this type of donation process. Still, it’s becoming more popular among those seeking alternative ways to donate money.
Elliptic has revealed that one of the organizations they’ve uncovered thus far, Come Back Alive– a group that received nearly $200,000 in funding recently from September to December last year–provides support primarily for Ukraine’s army.
Cybersecurity organizations have been receiving funding via cryptocurrencies for years now. One such organization is the Ukrainian Cyber Alliance. The group primarily carries out cyber operations against Russia-based hackers and propaganda disseminators. The organization get help from its supporters worldwide through Bitcoin donations or Litecoin mining ventures. They’ve received almost $100 thousand in Bitcoin and other cryptocurrencies to fund their operations against Russia last year.