ukraine cancels crypto airdrop rewards

Instead, we will announce NFTs to support Ukrainian Armed Forces soon. We DO NOT HAVE any plans to issue any fungible tokens— Mykhailo Fedorov (@FedorovMykhailo) March 3, 2022

Ukraine started accepting crypto donations on February 26 with the publication of its Bitcoin and Ethereum addresses. The country also began accepting Polkadot on March 1 and received $5 million in the crypto from founder Gavin Wood.

Fedorov then added support for Tether donations on Justin Sun’s Tron blockchain.

In total, Ukraine raised $42 million in crypto asset donations within six days. It also received some donations of Ethereum-based NFTs potentially worth hundreds of thousands of dollars if liquidated.

Some questioned how much difference the donations would make.

Official $DOGE wallet: DS76K9uJJzQjCFvAbpPGtFerp1qkJoeLwL

— Mykhailo Fedorov (@FedorovMykhailo) March 2, 2022

The airdrop that doesn’t happen after all

In order to increase the willingness to donate, Fedorov uses an unusual method that is popular in the crypto scene: He announces an airdrop, with a snapshot on March 3rd, i.e. today.

The people of Ukraine fighting for our freedom are forever grateful to Gavin Wood @gavofyork for the generous donation of $5M of @Polkadot$DOT as promised publicly. Thank you from all of us here in Ukraine working for a peaceful future 🇺🇦

— Ukraine / Україна (@Ukraine) March 1, 2022

To understand that, we have to go back a bit. In the course of the past year, the practice of retrospectively rewarding users of a Dapp with an airdrop has been established in the Ethereum community.

Mainstream media has also picked up the idea that Russia is using cryptocurrency to evade U.S. sanctions and ran with it.

Here’s everything you need to know about these stories, and more, in this week’s edition of OKX Insights’ News of the Week.

Ukraine crypto airdrop announced and abruptly canceled

After announcing a high-profile (and questionable) crypto airdrop, the government of Ukraine suddenly canceled it in favor of a future nonfungible token sale — causing arguably the biggest stir in the blockchain and cryptocurrency industry this week.

Key takeaway

  • The announced-and-canceled airdrop certainly worked from a marketing perspective, with crypto donations surging — likely a result of sybil farmers and donators expecting something in return.


Crypto in crosshairs amid Russian sanctions

The topic of Russian sanction evasion via cryptocurrencies has become a hot topic for mainstream media — with The New York Times, Wall Street Journal, Bloomberg, Politico and others all running stories that arguably show poor lighting on the blockchain industry.

Key takeaway

  • Cryptocurrency usage has, indeed, picked up in Russia and Eastern Europe since the implementation of severe sanctions on the former — though the on-chain figures are not representative of a massive shift toward crypto from the Russian government or high-profile figures.

Infura clears up misinformation on MetaMask ban

In other ConsenSys-related news, some debate and misinformation regarding MetaMask blocking users from certain jurisdictions raged in crypto-related media this week.

The best known were from Uniswap and ENS . A date is set when a blockchain snapshot is taken, and the addresses that were active up to that point – those that swapped via Uniswap or bought an .eth domain – are given a token, such as $UNI or $ENS.

So, in the same way, Ukraine should now reward people who donate cryptocurrencies. Done right, it could be more than just a gimmick: Should Ukraine defend the country, a Ukraine token could, for example, give discounts on visas, appointments with politicians, free accommodation and so on. It could become the first really useful token.

First, however, the airdrop had an absurd side effect: it prompted thousands to send worthless tokens or micro-amounts to Ukraine’s Ethereum address.

These now paid more to the miners than they donated to Ukraine.

One of the oddities of this conflict is that a nation-state in a state of war is now, intentionally or unintentionally, borrowing from the strategies of crypto scammers.

A total of more than 50 million euros – but for what?

As described above , the UkraineDAO also collects donations independently of the government . It already rewards donors with tokens, although it is not yet clear what the token will be good for. Nevertheless, the UkraineDAO managed to collect ether worth a good 7 million dollars.

Certainly the amount of donations is by no means exhaustively listed.
For example, Binance has raised more than 5 million dollars, Justin Sun has donated $200,000 to Tron, and so on. It’s difficult to overlook all of this.

On March 3 alone, Ukraine received another 25,600 donations.

Ukraine rug-pulled Ethereum donors

However, Ukrainian Minister of Digital Transformation Mykhailo Fedorov announced the cancellation of the airdrop later that day and said Ukraine would release NFTs to support its armed forces instead.

Ukrainian officials told media that profiteers sending tiny donations were the reason for its decision to cancel. By sending even the smallest amount, donors would still have a chance to receive rewards — a common tactic known as airdrop farming. A deputy minister called such behavior “unethical” in the wake of Russia’s still-ongoing invasion of Ukraine.

After careful consideration we decided to cancel airdrop.
Every day there are more and more people willing to help Ukraine to fight back the agression.

We DO NOT HAVE any plans to issue any fungible tokens— Mykhailo Fedorov (@FedorovMykhailo) March 3, 2022

Fedorov said that, after careful consideration, they decided to cancel the airdrop. But rumors suggest that there were complications related to issuing those fungible tokens. The airdrop was scheduled to occur on March 3 — and authorities canceled it a mere hour before the drop.

There was some heavy activity on March 3, but it turns out that a third party had spoofed transactions on the network.
Ukraine officials did not say when they would release the NFTs.

These developments have been occurring as crypto plays an increasingly bigger role in supporting Ukrainian defense efforts.

Bitcoin, Ethereum and USDT.

BTC – 357a3So9CbsNfBBgFYACGvxxS6tMaDoa1P

ETH and USDT (ERC-20) – 0x165CD37b4C644C2921454429E7F9358d18A45e14

— Ukraine / Україна (@Ukraine) February 26, 2022

Meanwhile, the bitcoin address has received 12,961 transactions, or 243 bitcoin. In addition, 356 Bitcoin are currently being donated to the Ukrainian aid organization Come Back Alive . So a total of 600 Bitcoin or 25 million dollars flowed into Ukraine.

A total of 6900 ethers arrived at the Ethereum address , a good 18 million dollars, and a number of tokens that is difficult to keep track of.
Etherscan is currently showing balances in 210 tokens and a value of 3 million dollars, primarily in USDT and DAI dollars.

Polkadot and Dogecoin

But Ukraine knows enough about cryptocurrencies to know that’s not all.

Ukraine is amazingly competent and creative in raising cryptocurrency donations. This has already brought the country more than 60 million dollars. We give an overview and speculate what the coins will be useful for.

Ukraine is amazingly skilled at raising funds through cryptocurrencies. The country is underlining that it is a crypto nation right up to the top of the government.

As previously reported , the official Ukraine account has posted addresses for Bitcoin, Ether, and USDT (as well as other ERC20 tokens). Deputy Prime Minister and Digital Minister Mykhailo Fedorov himself confirmed these addresses.

Stand with the people of Ukraine. Now accepting cryptocurrency donations.

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