Ukrainian Government Announces Airdrop as Crowdfunding Effort for Bitcoin, Ether, and DOT Exceeds $50 Million
Ukraine’s government has launched an airdrop after the receipt of millions of dollars in cryptocurrency to assist in funding the country’s military operations following Russia’s invasion.
An airdrop is a process through which project developers distribute crypto tokens for free to members of their community — often early adopters — as a thank you for their support. Additionally, they are an efficient marketing technique for attracting new users in order to increase adoption.
The official Twitter account of the Ukrainian government tweeted Wednesday that an airdrop has been confirmed, adding that the snapshot will take place tomorrow (March 3) at 6 p.m. Kyiv time.
Additionally, the tweet implies that information on Ukraine’s cryptocurrency fundraising drive would be released by Vice Prime Minister Mykhailo Fedorov rather than the government’s official account.
El Salvador airdropped $30 worth of bitcoin to anyone who downloaded the Chivo wallet last year, after the country’s adoption of bitcoin as legal coinage. However, the next one in Ukraine will be the first time in history that a nation has given crypto assets through an airdrop. It is yet unknown precisely what assets the war-torn country will distribute.
Since Russian President Vladimir Putin authorised a military assault on Ukraine on Feb. 24, the cryptocurrency community has rallied in favour of the Eastern European country.
Slowmist data indicates that approximately $50 million has been paid to Ukraine’s official crypto addresses and non-governmental organisations supporting the country’s military. Donations in many cryptocurrencies are welcomed, including Bitcoin, Ether, Polkadot’s DOT tokens, Dogecoin (DOGE), and Tether’s USDT.
Additionally, UkraineDAO, a decentralised autonomous organisation, was founded last week to generate cash to assist Ukrainians in need by selling non-fungible tokens (NFTs) of the country’s flag.
As the military crisis between Russia and Ukraine intensifies, so does interest in crypto. As the ruble falls, Russians are increasingly flocking to bitcoin. Russia has been rumoured to utilise cryptocurrency to avoid sanctions, however, commentators argue that this will be exceedingly difficult.
Meanwhile, big cryptocurrency exchanges are under pressure to ban “ordinary” Russian cryptocurrency users’ accounts. Binance and Kraken have both declined.