While it can be argued that the high valuations of non-fungible tokens (NFTs) are futile, they are coming out for a good cause. On Monday 20 June, the Ukrainian government announced that it had sold a donated CryptoPunk NFT for 90 ETH. quotation in real time), raising $ 100.000. Ukraine has stated that these funds will aid the country's war efforts against Russia.
The fundraising campaign for Ukraine has received several donations in the past three months. Cryptocurrency enthusiasts around the world have financially supported Ukraine in overcoming the war crisis.
The announcement was made by Alex Bornyakov, Ukrainian Deputy Minister of Digital Transformation. Bornyakov is also responsible for overseeing fundraising efforts in wartime Ukraine. In a tweet on Monday, Bornyakov wrote:
Latest Cryptocurrency Donation News: #CryptoPunk # 5364 sold for 90 ETH. This is over $ 100.000. A few months ago this NFT was donated to the @_AidForUkraine fund. The crypto community continues to support Ukraine.
Non-fungible tokens (NFTs) are blockchain-based tokens that suggest ownership of a digital asset or physical asset. Powered by the blockchain, NFTs are immutable and allow for ownership transparency to be maintained.
In recent years, some popular NFTs have been selling for several thousand dollars or at high valuations. However, NFTs have come under criticism from some of the most prominent personalities in the tech industry. Recently, Microsoft founder Bill Gates called NFTs a more foolish investment than theory. In a sarcastic comment, he stated that "expensive digital images of monkeys would definitely improve the world."
Ukraine and cryptocurrencies
Shortly after Vladimir Putin announced his invasion of Ukraine, the war-torn country began accepting cryptocurrency donations. So far, Ukraine has reportedly raised $ 135 million through cryptocurrency donations or the sale of donated NFTs.
Ukraine's Aid for Crypto fund contributes to the purchase of non-lethal supplies for the country's military. This includes medical supplies and bulletproof vests. The Ukrainian government only approves and supervises the project. It does not spend the funds received in the form of cryptocurrency.
Donations to Ukraine in fiat were much larger. However, cryptocurrency donations still contribute a sizable 40% of the total donation amount. But reports also suggest that crypto funds are running out quickly after a good response in the first couple of months.
On the other hand, the extreme bear market in cryptocurrencies is adding to the problems. Bornyakov recently appealed, adding that: “Although Ukraine has raised over $ 135 million in cryptocurrencies in response to the Russian invasion, the first wave of cryptocurrency donations has subsided. We still need your help. Support our defenders through @_AidForUkraine ”.
Amid the broader correction in the cryptocurrency market, sales in the NFT market are also dying out.
