Ukraine’s defense against the Russian invasion has now entered its seventh month, and while Ukrainian forces have been pushing the Russians back bit-by-bit, there are still millions of displaced refugees with no realistic timeline on when they can return home. One side effect of the conflict is a serious uptick in both the Ukrainian government and citizens using cryptocurrency in an attempt to sidestep the chaotic economic conditions created by the war.
The war has hit the global economy like a sledgehammer, with the Organization for Economic Co-operation and Development (OECD) estimating around $2.8 trillion in damages. Ukrainians have seen their economy shrink by 35% alongside a humanitarian crisis the likes of which the world has not faced since World War II.
$178 million has been donated to support Ukraine
The United Nations estimates that nearly 8 million people have been displaced, while 13 million more are stranded in affected areas, unable to flee to safer locations. While aid has flowed to Ukraine from other nations and NGOs, both in terms of arms and humanitarian relief, the ponderous procedures required of governmental intervention stands in stark contrast to the nimble nature of crypto’s decentralized infrastructure.
It is estimated that over $178 million has been donated to support Ukraine as of September 30, 2022. Some of these funds have come from major figures in the crypto world. For instance, Gavin Wood donated $5.8 million back in March. However, a significant portion has come from everyday individuals looking to help make a difference. Blockchain projects and startups like CryptoPunks and Massive have also been quick to join the efforts.
"Some larger organizations are starting to step up and send aid, but they don't really understand what's going on on the ground," said Massive’s CEO and Co-Founder Jason Grad in a CoinDesk interview earlier this year. “It has shifted from our delivering humanitarian aid and evacuating women and children to helping organizations that know where supplies are actually needed.”
The outpouring of support from the world
Grad has been part of a group of entrepreneurs who made it their mission to help team members and colleagues in Ukraine after the war started. Having raised over $100k so far, Grad and the team at Massive have purchased over $50,000 worth of medical supplies, non-perishable food, and now are allocating more of the funds raised toward winter clothing for Ukrainian troops.
“Ukraine is fighting for all of our freedoms and paying an immense price from the civilians and soldiers lost and from families being forcefully broken apart. It’s incredible to see the outpouring of support from the world, both civilians and governments, but they need as much help as they can get. The donations we raised and allocated are our small contribution to get resources where they are most needed right now.” adds Grad.
The role of cryptocurrency in world
The Massive CEO’s posture resembles that of Near Protocol’s founder Illia Polosukhin, who told Decrypt that crypto “delivers help directly to people.” While fiat donations are larger in volume, crypto’s ability to be moved instantly and directly to anyone has proven extremely effective. The anonymous nature of crypto also allows Russian nationals to express their dissent by directly aiding Ukrainians without fear of state repercussions.
As winter approaches the conflict shows no signs of ending, and the future of Ukraine remains uncertain. However, the role of cryptocurrency in world affairs has significantly solidified: allowing one global citizen to help another directly, effectively and transparently. You can help too by donating to Grad and Massive’s campaign page.
