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How Ukraine is funding its defense through NFTs, war bonds, or crypto

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The most recent attempt to raise money to support Ukraine resulted in the tiniest office above the premises of a London bakery.

https://cryptoblogstar.com/how-to-store-my-cryptocurrency-basic-guide-about-crypto-wallets/ and Nathan Cohen aged 23-25, gathered at their computers earlier in the week to launch the first ever auction of digital collectibles that are unique by a federal government.
Kyiv was successful in selling more than 1,200 nonfungible tokens.
This auction utilized blockchain technology to provide funding for wartime. It demonstrates the way that Ukraine's government utilizes both traditional and innovative methods to generate funds to sustain the current crisis.
NFT and backed by PussyRit , member raises $6.7M for Ukraine

The old school is the sole playbook. Kyiv has raised approximately $1 billion via war bonds that were sold to Ukrainians and institutions. The Ukrainian population is willing to lend cash to the state, even though it is not certain they will get the entire amount back.
President Volodymyr Zelesky's administration has encouraged potential donors from all over the world to transfer cryptocurrency directly. The initiative has raised over $56 million according to Chainalysis, an analytics group. This Wednesday, NFT sales saw many collectors from Los Angeles up to Barcelona join in what was considered to be an important time for the cryptocurrency market in Ukraine as well as their country.
"The Ukraine war has been devastating and will remain in the books of history," said Ben Jacobs (co-founder of Scenius Capital which is a digital asset investment firm). "This use of technology that is crypto-based is historical in its own right."
Jacobs is located in Venice Beach, California, bought two NFTs, spending a total of $1,100 including tiny fees associated with the transactions. The Ukrainian government was paid 1,000 in Ethereum, which is the cryptocurrency commonly used for NFTs sales.
A fundraising rush
In Europe and the United States, people have been showing their support for Ukraine by hanging blue and yellow flags on buildings, hosting local fundraisers and updating their profiles on social media.
Zelensky’s team needs more then the use of words and gestures. Kyiv will require cash. It will need a lot of it. According to the Ukrainian government the conflict may have cost Ukraine $565 billion. Its economic output in 2020 was $155 billion.
"Our deficit in the fiscal space" is higher than what we anticipated, Yuriy Butsa (Ukraine's commissioner for debt management) spoke to CNN Business. He was talking about the gap between the government's revenue and spending.
The government launched an unprecedented campaign to raise funds at a global level in order to bridge the gap within the five weeks following the Russian invasion.
Viktor Szabo a fund manager at Abrdn (UK-based) declared that these guys are innovative.
A man from Barcelona wearing a ribbon with the colors of the Ukrainian flag, uses the smartphone to access his phone on the day of Mar. 1.

Kyiv used the tried and tested channels to raise funds. Ukraine has already received emergency funding of $4 billion from multilateral organizations such as the International Monetary Fund or World Bank. An additional $2 billion is being negotiated.
It is also using traditional war bonds. They are issued by government in conflict situations to gain support from citizens. They can be useful in fighting inflation as they remove cash from circulation at a time when goods are in high demand.
Ukraine has raised more than $1 billion from five transactions of bonds issued in local currency during March. Butsa said that there was an enormous demand both from institutions and individuals. The proceeds are placed into the pots of the government and used to pay for expenses such as pensions or emergency services.
Butsa said, "There are a lot more people buying $10,000 or $5,000" of this instrument.
In the current market will require an act of faith. One-year notes last month yielded 11 percent. This demonstrates the high risk of these bonds. The repayment isn't guaranteed in the event that Zelensky's government is dissolved or sent into exile, and a prolonged war harms the Ukrainian economy.
S&P Global Ratings cut its credit rating for Ukraine immediately after the invasion. The report stated that although the international community has been expected to help Ukraine with its financial requirements over the course of 12 months, there is the possibility of "governance disruptions" which could lead to commercial debt servicing being put at risk.
Butsa said that the Ukrainian government was working 24 hours a day in conjunction with bankers to come up with an upcoming $1 bond that could be sold abroad. A lot of foreign investors would like to back Kyiv but are blocked due to capital controls which make it impossible for them to receive any dividends in Ukraine’s currencies.
Butsa declared that his aim was to create an easy process for those who want to aid Ukraine to do so via the US. The team is also looking into alternatives within the European Union.
Professional investors, who have obligations to protect the money of their clients might be wary of making loans to the government of Ukraine despite its backing for Ukraine.
"We cannot invest in an asset where there is a significant chance of the money not being returned," Szabo said, however, he said he believes the market will get attractive again after the war has ended.
The crypto angle is being explored
Because Ukraine is worried about drastically increasing its debt burden There are financing options that do not require borrowing.
"We do not want to end up, as the war is in the process of reconstruction, to spend more on the debt service than what we pay on rebuilding infrastructure," Butsa said.
Here's where NFTs as well as crypto donations can be made. Ukraine has been encouraging people to make bitcoin transfers as well as other crypto currencies through the official social media accounts for weeks. The government now has access to a large group of small donors who don’t need to worry too much about complicated financial contracts or currency exchange.
Chainalysis confirmed to CNN Business that Kyiv had collected around $56 million of cryptocurrency as of March 28. The median contribution was $30. Alex Bornyakov (Ukraine's deputy minister for digital transformation), stated last month that the funds were used to purchase helmets and vests with bulletproof protection, walkie talkies, and medicines.
During the protest against the Russian invasion of Ukraine People stand in front of the large Ukrainian flag outside the White House on Feb. 24 in 2017.

An NFT of Ukraine's flag was auctioned off through UkraineDAO. The idea was backed by a member of the Russian activist organization Pussy Riot. This auction brought in more than $6.7million .
This week was the first official NFT sale, which marked the beginning of a new phase. Around the world supporters bid on digital images created with local artists, combining vibrant images with artifacts such as tweets.
Kevin Lista Navarro, a 26-year-old financial advisor in Barcelona had previously donated to aid refugees from Ukraine. He still considered the NFT Auction as an opportunity and decided to purchase two auctions.
"Thanks for this technology, now you have the opportunity to contribute to it and also receive in turn a commemorative piece of art," he stated. "Who knows what these might be worth in the future?"
Kamlish Cohen Bentata and Cohen -- the London team behind the nascent FAIR.xyz sales platform was employed for the project -- were hired after sending out cold emails to Ukrainians about the NFT project. In the last two and a half weeks, they've been in late-night work and on adrenaline to start the project.
Bentata has said that "it's been really crazy."
Kamlish confirmed that the procedure went smoothly, despite heavy web traffic that could have been caused by criminals.
Jacobs of Scenius Kapital stated, "How Ukraine really leaned to cryptocurrency as a method to gain financial support... this demonstrates how important it is for governments to be inclined to crypto and NFT technological rather than being averse to it simply because it's new and frightening."
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on Apr 24, 22