The FTX exchange has announced a US$ 25 donation for every user from Ukraine registered on the platform. The company’s CEO Sam Bankman-Fried even confirmed the move on his Twitter, who added the comment, “do what needs to be done”.
In addition to FTX, other cryptoasset donations are being made to help Ukraine. In addition to the restrictions on leaving the country and other difficulties imposed by the conflict with Russia, Ukrainians are also barred from making withdrawals in foreign currencies and have restrictions imposed on withdrawals in local currency (Ukrainian grívnia).
Although the conflict initially impacted the crypto market negatively, this situation demonstrates the great social (and economic) potential of cryptoassets. After all, in cases of geopolitical conflicts or other problems that could put citizens at risk, the decentralized economy (i.e., without the control of government institutions) is a strategy to ensure citizens’ well-being and even survival.
For example, Come Back Alive, a Ukrainian NGO that provides aid to the country’s army received more than US$ 400,000 in bitcoin between February 24 and 25. The funds, which were also sent to volunteers and other groups in Ukraine, are being used to equip the army, to purchase medical supplies and drones.
At the same time, Russia is also suffering consequences for its actions. The Moscow stock market closed (on February 24) down 33%, and the Russian currency (ruble) had already dropped 4.27%, according to InfoMoney. In this scenario, buying cryptoassets is also a strategy for Russian citizens to protect their capital.
Increasingly, the crypto market shows its potential because digital currencies are an instrument of protection regardless of wars, conflicts, confiscation of valuables, or devaluation of fiat money.