The conflict between Ukraine and Russia that is attacking Russia has been going on for a long time, with no end in sight.
Both sides have relied on every available resource to support their military and humanitarian activities, and it seems that crypto assets and technology have become the latest tools in their arsenal.
A new report by Elliptic, a blockchain forensics company, claims that both countries have received donations in the form of digital assets.
However, the report also shows that the targeted country, Ukraine, has attracted more donations of digital assets than the attackers.
Since Russian forces invaded Ukraine on February 24, 2022, both sides have been using blockchain technology to raise funds for their military campaigns, according to a new report by Elliptic.
Image: Center for Strategic and International Studies
The report, which examines the ongoing role of cryptocurrencies in ongoing conflicts, draws on data collected by crypto analytics companies over the past year.
In a surprising revelation, the latest analysis of transactions tracked by Elliptic has uncovered where many crypto assets have flowed into ongoing conflicts.
Elliptic Report: $212 Million In Crypto For Ukraine
A staggering $212.1 million in digital assets has been channeled to support Ukraine, while anti-government organizations in Belarus, a powerful political and military ally of the Russian Federation, received a mere $0.7 million in comparison.
The findings reveal the staggering scale of the conflict and the immense pressure exerted by both sides to secure funds to fuel their military campaigns.
Only about $5 million has been collected in cryptocurrency donations by pro-Russian organizations, including those that support the Russian military and affiliated militias.
Other organizations, including some associated with sanctioned groups, have tried and failed to replicate Ukraine’s achievements with NFTs and DeFi.
Chainalysis Findings: $70 Million in Crypto
Meanwhile, on the one-year anniversary of Russia’s invasion of Ukraine, a new study by Chainalysis revealed that the Ukrainian government alone received $70 million in crypto donations during the conflict.
The blockchain data platform highlights how effectively governments are using cryptocurrencies, particularly Bitcoin (BTC) and Ethereum (ETH), to support their war efforts.
Crypto total market cap at $1 trillion on the weekend chart | Chart: TradingView.com
In the face of chaos and destruction caused by the Russian invasion, Ukraine can turn to cryptocurrencies for a glimmer of hope. The speed of crypto payments will prove to be an important factor in the country’s ability to respond to the conflict, according to Ukraine’s deputy digital minister, Alex Bornyakov.
In a recent interview with Yahoo Finance, Bornyakov explained how the ability to accept crypto donations has fast-tracked the country’s ability to respond to invasions, providing a much-needed boost to military campaigns.
These donations came in the first few months of the war, with approximately 80% of the total $70 million in crypto funds received in this period.
-Images shown are from Abroad