The conflict between Ukraine and Russia has now lasted for more than a month. From the very start of the war, cryptocurrency has been used to support civilians and the military. Vitalik Buterin, the founder of Ethereum, chose not to remain on the sidelines: he donated the equivalent of $5 million (about £3.8 million) to aid Ukraine.
More precisely, Buterin donated 750 Ethereum (ETH) to the Unchain Fund, a charity established by blockchain activists to provide humanitarian assistance to Ukraine. In addition to that donation, he also sent 750 ETH to Aid For Ukraine, a fund created by the Ministry of Digital Transformation of Ukraine. Aid For Ukraine announced on Twitter that it was grateful to receive a generous donation worth about $2.5 million (approximately £1.89 million) from Buterin.
Buterin stays modest
Buterin himself has not publicly commented on the donation. The only reason the gifts became known is that the recipient organizations confirmed them, and the Ethereum Name Service (ENS) domain “vitalik.eth” recorded the transfers.
Thanks in part to this contribution from Ethereum’s founder, crypto donations to Ukraine have surpassed $100 million (around £75 million). Significant funds from the crypto community have been directed to the Ukrainian government and a range of organizations, including the “Come Back Alive” military aid fund, UkraineDAO, Unchain Fund, Aid For Ukraine and the Cyberpolice of Ukraine.
How are the funds being used?
The Ukrainian government and charitable groups are using these crypto donations for a variety of purposes. Military and humanitarian initiatives have benefited from the generosity of the crypto community. Cryptocurrency donations enable swift, direct assistance in critical situations.
International transfers using cryptocurrency can bypass traditional financial intermediaries, allowing funds to reach their destination quickly. In most cases, however, these crypto assets must later be converted into fiat currency to purchase goods and services. We have not yet reached a point where Bitcoin or Ether can be used universally for everyday transactions.
Interestingly, the first Bitcoin donations to Ukraine began arriving on February 8. By that time, the Russian threat was already intensifying, and Ukrainian volunteers and hacker groups stepped in to provide support.
Bitcoin price rose 35% in the month after the invasion
In the month following the Russian invasion of Ukraine, Bitcoin’s price climbed by about 35%. That rise suggests Bitcoin can act as a resilient asset during major geopolitical shocks and unstable macroeconomic conditions.
More recently, Bitcoin has experienced some pullback. After rising to around $48,000 (£36,400), the price slipped back below $45,000 (£34,000). Organizers of the Bitcoin 2022 conference scheduled several notable sessions that could influence market sentiment; for example, a presentation by Samson Mow was billed by speakers as potentially significant.