The Government of Ukraine today announced that its Aid for Ukraine crypto fundraising campaign has sold a donated money cryptopunk NFT and raised more than $100,000 to support its war effort against Russia.
Cryptopunk #5364 was donated to the Ukrainian crypto fund in March. Yesterday, the fund sold the NFT to an anonymous buyer for 90 ETH. NFTs are blockchain-based tokens that show ownership over digital or physical assets.
Alex Bornyakov, Ukraine’s Deputy Minister of Digital Transformation – the agency responsible for overseeing wartime crypto fundraising – announced the sale in a tweet today.
Breaking news about crypto donations: #CryptoPunk #5364 sold for 90 ETH. It’s over $100K. A few months ago this NFT was donated for @_AidForUkraine fund. Crypto community continues to support Ukraine.
A crypto group at the beginning of March Raised $6.75 million for the country’s war effort through the sale of a single NFT of the Ukrainian flag. A few weeks ago, the Ukrainian rap group Kalush Orchestra, this year Eurovision championstheir music competition trophy up for auction to raise nearly $1 million in ETH for the fund†
The crypto fund helps to buy non-lethal supplies for the Ukrainian military, ranging from bulletproof vests to medical supplies† The funds are not owned or spent by the Ukrainian government, which only endorses and oversees the project. Ukrainian crypto exchange Kuna manages the fund’s treasury, which is used to finance volunteer purchases.
Ukraine’s wartime embrace of crypto has served as a case study for the potential benefits of using crypto in geopolitical conflicts where fiat currencies (such as US dollars) can be difficult to move quickly.
It has also pointed out potential drawbacks. The International Monetary Fund warned in April that Russia circumvent economic sanctions by mining cryptocurrencies, although US Treasury Secretary Janet Yellen says this practice has not been widely observed.
Furthermore, crypto and NFT donations are fully exposed to the current crypto bear market. The price of Ethereum has plummeted almost 70% in the past ten weeks, inexorably influencing the fundraising potential of NFT collections like Cryptopunks built on Ethereum.
The Cryptopunk sold yesterday generated just over $100,000 in wartime fundraising for Ukraine; that same amount of ETH would have been worth over $267,000 on the day the NFT was donated in March.
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