More and more people are using cryptocurrencies such as Bitcoin to raise funds or donations. Indeed, these digital assets are a fast, cheaper and simpler alternative for money transfers.
A report, published on February 8 by blockchain analytics firm Elliptic, revealed that hundreds of thousands of dollars in Bitcoin and other cryptocurrency donations have been made to Ukrainian non-governmental organizations (NGOs) and volunteer groups. .
The report pointed out that cryptocurrency funding for such organizations increased by more than 900% in 2021 compared to the previous year. In addition, the wallets used by these volunteer groups and NGOs received a total of $570,000.
Often, banks and financial institutions block payments intended for these groups. This is why cryptocurrencies have become a funding medium of choice, the report pointed out.
“Bitcoin has also become an important alternative funding method. Because it allows international donors to avoid financial institutions that block payments to these groups”.
Cryptocurrency donations to fight oppression
Part of the Bitcoin donations were used to finance military and medical equipment as well as drones for the Ukrainian army. Another part has enabled the development of a facial recognition application to identify enemy mercenaries or spies.
Tom Robinson, Elliptic’s chief scientist, commented:
“Cryptocurrencies are particularly suitable for international fundraising, as they do not respect national borders and are resistant to censorship. There is no central authority that can block transactions, for example, in response to sanctions”.
In addition, the report points out that some Ukrainian NGOs and volunteer groups have close ties to the government. This confirms the “trend of nation states to turn to cryptocurrencies as a means of raising funds”.
Russian troops have been gathering on the Ukrainian border for several weeks as tensions between the two countries escalate. World leaders have called for diplomatic solutions, but these have yet to see the light of day as the aggressors refuse to back down.
Crypto crowdfunding is gaining ground
Crypto has become a tool of choice for crowdfunding movements and protesters. Indeed, often centralized financial platforms refuse to execute payments, perhaps due to state pressure.
Recently, the “Freedom Convoy” movement in Canada has also turned to crypto funding following GoFundMe’s refusal to process payments. The “HonkHonk Hodl” movement has chosen the Bitcoin funding platform, Tallycoin, and has already raised 14.6 BTC, or $640,000 at the current price.
A Decentralized Autonomous Organization (DAO) created to fund the freedom struggle of WikiLeaks founder Julian Assange has also received cryptocurrency donations. As of this writing, AssangeDAO has already raised over 17,422 ETH. At the current price, that equates to around $54 million.
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