Skip to main contentdfsdf

Home/ cardanospwp219's Library/ Notes/ How Ukraine funds its defense through NFTs, war bonds, and crypto

How Ukraine funds its defense through NFTs, war bonds, and crypto

from web site

coin cardano ada price cryptocurrency what is crypto world mobile token

The center of the latest effort to raise funds for Ukraine was a bare-bones office above a bakery in north London.

Isaac Kamlish was joined by Nathan Cohen and Isaac Bentata aged between 23-25. They gathered together with their laptops earlier in this week and began the first sale for one-of a kind digital collectibles at a national government.
Kyiv utilized technology created by the three to offer more than 1,200 tokens that are not fungible (or NFTs) within 24 hours. The company raised around $600,000.
The auction, which used blockchain technology as a method to finance wartime operations, demonstrates the way that Ukraine's government uses both modern and traditional tools to procure the money it needs to get through the economic crisis.
NFT funded by a member of Pussy Riot raises $6.7million to Ukraine

One of the playbooks has been traditional. Kyiv has raked in around $1 billion from the sale of war bonds Ukraine to institutions and individuals. It is a sign that people are open to lending money to the state, even if they do not get their cash back.
President Volodymyr Zelesky's administration urged potential donors around the globe to transfer cryptocurrency directly. The campaign has brought in more than $56 million, according to Chainalysis an analytics firm. The NFT auction on Wednesday saw people all over Los Angeles to Barcelona rush to join in what they saw as significant for Ukraine and the crypto world.
"The Ukraine war is devastating and will go down in history books," said Ben Jacobs who is the co-founder of Scenius Capital, an investment firm that invests in digital assets. "This crypto-technology use is historical in its own rights."
Jacobs, who is based in Venice Beach, California, purchased two NFTs for around $1100, including tiny fees associated with the transactions. The government of Ukraine received $1000 in ether (the currency most frequently used to purchase NFTs)
A fundraising rush
People in Europe and in the United States have displayed solidarity with Ukraine by the hanging of yellow and blue flags on their buildings organizing fundraisers, as well as updating their avatars through social media.
But Zelensky's team needs more than just gestures and words. In order to keep Ukraine's government in operation and equip its military, Kyiv requires cash -- and lots of it. It estimated that $565 billion could be used for the war. Its 2020 economic output was $155 billion.
"Our deficits in the fiscal realm are larger than we expected when the year started," Yuriy Butsa - Ukraine's commissioner to public debt management said to CNN Business. She was referring specifically to the gap in government revenues and expenditure.
The government launched an unprecedented effort to raise money on an international level to bridge this gap in the five weeks that followed Russia's invasion.
Viktor Szabo of Abrdn's fund manager, Viktor Szabo said, "These guys have been being inventive."
A man sporting a ribbon featuring the colors of the Ukrainian flag is seen using the phone in Barcelona and Mar. 1.

Kyiv used tried and true methods to raise money. Ukraine has already received $4 billion of emergency funding from multilateral organizations which include the International Monetary Fund, World Bank and World Bank. A further $2 billion is being negotiated.
It also makes use of classic war bonds, which can be issued by government during conflict to draw support from citizens. They also can be used to stop inflation by taking cash out of circulation during times where there is an absence of merchandise.
Ukraine has raised more than $1 billion through five sales of bonds issued in local currency during March. Butsa said there was an enormous demand from both the institutions as well as individuals. The government holds the funds and utilizes them to fund expenses such as pensions and emergency services.
Butsa has stated that there are many who buy $10,000 or $5,000 of this instrument.
This is why you need to make a leap of faith when purchasing bonds under the current economic climate. One-year notes from the month of December yielded 11.1 percent. This shows the risky nature of these bonds. The government's repayment or exile, or a prolonged conflict that destroys the Ukrainian economy is not certain.
S&P Global Ratings lowered its credit rating for Ukraine within a short time following the conflict. The report stated that although the international community is expected help Ukraine in its financial needs over 12 months, there's the risk of "governance disruptions" which could lead to commercial debt servicing becoming at risk.
Butsa stated that Ukraine's government is working "24/7" to create an anew dollar bond that it can sell to foreign investors. While many are eager to back Kyiv however, they are constrained by capital controls , which prevent them collecting returns in Ukraine’s currency, as well as other logistical issues.
Butsa declared that his aim was to develop an easy method for anyone wanting to help Ukraine to do so via the US. Butsa's team is also considering possibilities within the European Union.
Despite the support of Ukraine professionals- who have a duty to protect their clients' money -- may be nervous about giving money to the Ukrainian government at the moment, even if it can come up with a method to issue bonds abroad.
"We cannot invest in an investment where we see [a] significant chance of the money not being returned," Szabo said, however, he said his opinion is that the market may get attractive again after the war ends.
The Crypto angle
Alternative financing options that do not require borrowing are also appealing, since Ukraine is wary of drastically growing its debt load.
Butsa said that "we don't want it to finish after the war has come to a reconstruction phase and we have to pay more for the debt servicing than we do for the reconstruction infrastructure."
That's where donations to crypto and NFT sales may help. Ukraine is encouraging citizens to donate bitcoins and other cryptocurrency via official social media accounts for a few weeks. This has enabled the government to gain access to a large number of small donors, who don't have to be concerned about complex financial arrangements or currency exchange.
Chainalysis reported to CNN Business that Kyiv raised approximately $56 million in crypto-related funds as of the 28th of March. This was with an average donation of $30. Alex Bornyakov of Ukraine, the deputy minister for digital transformation has stated in the last month, that the money was being used to buy vests that are bulletproof. Walkietalkies, helmets as well as medications.
During the protest of the Russian invasion of Ukraine the crowd gathers in front of a large Ukrainian flag outside the White House on Feb. 24 in 2017.

The auction of the NFT Ukraine's flag by UkraineDAO was backed by a member of the Russian activist group Pussy Riot. More than $6.7 million was raised .
This week, the official NFT Auction marked a new stage in the NFT's efforts. The supporters from all over the world bought digital photos created by local artists. The images were a mix of vibrant images and war artifacts such as tweets.
Kevin Lista Navarro is a 26-year old financial adviser from Barcelona. He's already donated money to refugees from Ukraine. He saw the NFT Auction as an opportunity and bought two tickets.
https://cryptoblogstar.com/internet-from-arpanet-decentralized-network/ added, "Thanks in part to this technology, it's possible to give to the cause and receive as a result a work of art that is commemorative." It is possible that they will be useful in the near future, but who is to say?
After cold emailing representatives from the Ukrainian government, Kamlish Cohen, and Bentata (the London team whose is still in the early stages of launching FAIR.xyz was utilized for the sale), Bentata, Cohen and Cohen were given the opportunity to work. They've been involved for the past two-and-a-half weeks, pulling late nights and running on adrenaline to get the launch ready.
Bentata declared, "It's been really crazy."
Kamlish said that even though there was a significant amount of visitors to the site, it went smoothly.
Jacobs of Scenius capital stated, "How Ukraine has really turned to crypto as a method to garner financial support... it demonstrates how governments lean into crypto and NFT technology instead of fighting against it due to it being a new and scary technology."
cardanospwp219

Saved by cardanospwp219

on Apr 28, 22