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Ukraine is also being Impacted by Dwindling Cryptocurrency Values

Russia’s invasion of Ukraine has done no small damage to the economy of the country. According to a press report by the World Bank released on Sunday, April 10th, it stated that the Russian invasion would shrink Ukraine’s economy by 45%. This shrink has a very bad effect on the way people live in Ukraine and on the economy of the whole country.

After about three months of the war, Ukraine hopes to continue to tap into the benefits of cryptocurrency. The country is now reaching out to crypto investors to help raise funds as the current economic situation is a mess.

Saved funds in cryptocurrency depreciate in value

Ukraine’s government has used social media to solicit cryptocurrency donations. Speaking on the amount raised so far, Alex Bornyakov, the deputy minister for digital transformation, said the government raised a total of more than $60 million in cryptocurrency. However, due to the current challenges in the cryptocurrency, the amount raised has depreciated two months after it was raised, and the worth is now reduced to $51.5 million.

More funds are required

The marketplace of the blockchain has quite a volatile nature, which is seriously affecting the industry as a whole. The crypto industry has witnessed sharp decline and deterioration in recent weeks, and Bitcoin, the most common type of cryptocurrency, has lost more than 20% of its value in May. This was preceded by a drop of 17% in April.

Recall that funds were raised while the invasion was on with the tag “Aid for Ukraine.” This raised fund was stored in cryptocurrency. Bornyakov told Reuters in a written response that the government had already spent about $45 million of the money raised to buy equipment for the Ukrainian army before the crash.

Without doubt, crypto would provide some much needed funds to help the current economic situation. However, Kiev has estimated that about $15 billion in US dollars would be needed over the next three months to help bring the economy back to its feet.

NFT sales to benefit humanitarian causes

Even though the crypto market is getting worse, Ukraine is still interested in crypto assets as a way to raise money.

Noting that the current situation has not just affected the economy or livelihood but even basic necessities of living, Obolon, the largest independent beer brand is making moves to sell NFTs, to help distribute water for free, as humanitarian aid.