Ukraine backtracks on airdrop and looks to issue NFTs to support military


Ukraine has canceled plans to conduct an airdrop that was due on March 3rd.

The country’s Prime Minister, Mykhailo Fedorov, tweeted that the country had backtracked on the plan after “careful consideration” and is now looking to issue NFTs to support its military.

Airdrops typically give users free crypto to help push adoption. However, it was unclear what Ukraine intended to airdrop and whether it would be a new cryptocurrency issued by the state.

Similarly, Fedorov has not divulged details about the announced NFT project and it is unclear what form it will take.

Microdonation spike following Airdrop announcement

The airdrop announcements made on Fedorov and Ukraine’s official Twitter caused a surge in micro donations to the country ranging from 0.01 ETH to 0.001 ETH, according to data from Dune Analytics.

Social media users began pointing out that the new donations were being made by people trying to become eligible for the airdrop, with some labeling the new donations as people who only care about money.

Meanwhile, some rumors say the microdonation surge is a “Sybil attack” to game the airdrop and maximize their airdrop rewards. Sybil attacks are when a single user makes multiple donations from different addresses to try and game the system.

Some people on various social media expressed dissatisfaction after the airdrop was canceled, however, most people do not care that they will not be rewarded for their donations.

More than $50 million donated in a week

Ukraine has raised more than $50 million in crypto donations since the invasion began last week. Fedorov has been at the forefront of the country’s campaign to raise support through cryptocurrencies and now NFTs.

While most of the donations are being made in crypto, someone donated a CryptoPunk NFT to the cause. Additionally, an Ethereum-based group Ukraine DAO auctioned off an NFT of the country’s flag on March 2nd for $6.75 million — making it one of the most expensive NFTs ever sold.

It is unclear how the proceeds are being spent due to the national secrecy involved. Ukraine has said that its Defense Ministry is in charge of disbursing funds and is mainly using it to buy equipment for the military.

The country added that blockchain’s transparent nature makes it so anyone can see how the funds are being spent.

CryptoSlate Newsletter

Featuring a summary of the most important daily stories in the world of crypto, DeFi, NFTs and more.

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Original Source