On Thursday, Ukraine’s government announced the cancellation of a crypto airdrop intended to raise funds for the country’s defense against Russia’s invasion last week. Instead, the government has announced that it will issue non-fungible tokens (NFTs) to raise cash for its armed forces.
Ukraine’s Vice Prime Minister is Mykhailo Fedorov. On Thursday, he notified the public that the government had decided to cancel an airdrop for cryptocurrency donations. On Tuesday, the latter notification was made. Instead, they want to raise additional funds by selling NFTs.
Fedorov informed on Twitter that they had decided to cancel the airdrop after much thought. Rather, they will shortly announce NFTs to assist the Ukrainian Armed Forces. He stated unequivocally that they have no plans to produce fungible tokens.
Ukraine’s government planned to begin the airdrop at 6 p.m. yesterday (Thursday). It is Kyiv time. However, on Wednesday, the crypto airdrop campaign took an unexpected turn when scammers began targeting Ukraine’s fundraising efforts. Scammers constructed a phony token that appeared to be an actual airdrop token for cryptocurrency contributors.
Diving into Airdrop
An airdrop markets effort in the cryptocurrency sector in which distributed money or tokens to wallet addresses in order to create awareness of a new virtual currency.
Small amounts of the new virtual money are sent to active blockchain community members’ wallets for free. It might also be in exchange for a tiny service, such as re-tweeting a post from the currency’s issuer.
A Marketing Tool for Donations
The phony airdrop began almost an hour before the actual launch time. Fedorov declared a few hours later that Ukraine had canceled the crypto airdrop operation and would instead use NFTs to boost the country’s military forces. Despite the fact that the airdrop program discontinued, it was a successful marketing tool in generating additional donations.
The minister did not say why the administration decided to cancel the airdrop. The U-turn disappointed some in the crypto community, while others found it bizarre.
Ukraine Lifted Up by Crypto
Ukraine is one of the world’s largest cryptocurrency adopters, according to Chainalysis. Only Vietnam, India, and Pakistan were ahead of it. As Russia’s invasion proceeds, Ukraine has begun taking cryptocurrency payments for its troops. The use of cryptocurrency in the country demonstrates the technology’s advantages.
Ukraine announced the airdrop initiative on Wednesday. It followed widespread support from the crypto community and the gift of millions of dollars in digital assets. It has been receiving crypto donations in the form of Bitcoin, Ethereum, and other crypto currency over the last week.
On February 26, the Ukrainian government stated that it will accept cryptocurrency donations. The government has received more than $10 million in Bitcoin and $16 million in Ethereum, respectively. To date, more than $50 million has been raised in cryptocurrency funds.
