How Crypto Can Enable a New Way to Fund Public Initiatives

FinanceFeeds Editorial Team

If the brutal events in Ukraine have proven anything, it’s that unfortunately the world will not be the same. From a geopolitical side, a new iron curtain is bound to fall on the world, and Ukraine is currently fighting hard to make it into the Western world.

But one of the underrated changes that this country, which was even previously extremely open to crypto, is the idea of crypto being used for good to fund important causes across the world.

It started from the UkraineDAO initiative, which somewhat similar to other ideas like ConstitutionDAO, wanted to collect funds and distribute them to the people of Ukraine. But the government itself quickly picked up the narrative and offered its own wallets for people to donate.

Vice Prime Minister of Ukraine Mykhailo Fedorov published BTC, ETH and TRON-based TRC-20 USDT wallets on Feb. 26, where anyone can send funds to the government and directly support the people in their struggle against the Russian invaders.

The addresses collected about $15 million dollars in about a week — a far cry from the ConstitutionDAO, which collected several more millions in the same time span. Given how one was a semi-serious attempt at participating in an auction, and the other is a fundraising attempt for a war-torn country suffering an unprecedented bout of destruction and suffering, this fact did not highlight crypto in the best of terms. 

This changed when semi-official rumors of an airdrop surfaced.

The wallet balances quickly swelled up as people were now expecting to receive a token in return. Nobody knew why or how it’d work, but the expectation of having something in return was masterfully used by the Ukrainian government to boost the fundraising efforts. They then “rugged” donors and not going ahead with the drop of a fungible token — though they did announce NFTs.

Amidst all this, the TRON community donated significant sums as well via TRC-20 USDT, which is particularly well-established in the Eastern European crypto community for its much cheaper transaction fees. In particular, Justin Sun personally donated $200,000 to the wallets indicated by the minister.

TRON was expected to be excluded from the airdrop, with Sun aiming to defend the TRON community for this “exclusion” that would’ve left community members without a potential reward that others would’ve gotten.

It may sound hypocritical to complain about not receiving “free” things, but there is also a wider topic at play in these events. Crypto’s fundamental premise is weaponizing human greed to make decentralized public networks work, and thus provide value to regular people like those in Ukraine. The expectation of profit was the largest difference between ConstitutionDAO and the Ukraine fundraiser, and if all it takes is airdropping some “valueless” token to earn more funds, then the crypto principle still holds: instrumentalizing greed can be a force for good.

Read this next

Institutional FX

Fiserv secures major payment institution licence in Singapore

Brookfield-based financial services technology provider Fiserv Inc has obtained nod for a Major Payment Institution license in Singapore.

Institutional FX

Finalto expands NDFs line-up with Taiwanese dollar

Finalto announced today that it has expanded its non-deliverable forwards (NDFs) offering with the addition of Taiwan’s dollar to its trading platform.

Opinion

It’s time for FX to Harness Crypto’s Potential

Jonathan Cumberlidge, FX Sales Director for BVNK, makes the case for cryptocurrencies in improving the efficiency and flexibility of foreign exchange trading.

Digital Assets

Owner of OptionMint, OptionKing, and OptionQueen gets 30 months in prison

A US federal judge has sentenced Ohio resident Jared Davis, who was found guilty for his participation in a multi-million fraud scheme carried out by Israeli-run binary options websites.

Executive Moves

iS Prime co-founders Raj Sitlani and Jonathan Brewer leave, but “business as usual”

“For our clients and teams at iS Prime, iS Risk and iS Prime Hong Kong, it is business as usual. We will be increasing our investment in our technology and staff, putting our clients first as we drive the business forwards to maintain our market leadership position.”

Digital Assets

Germany-focused DekaBank taps METACO for digital asset custody offering

“Digital assets are a critical part of the future, a radical new way for how assets will be represented, from currencies to real estate.”

Technology

Eventus launches AML solution for TradFi and digital asset space

“Firms operating in traditional financial markets and digital assets alike are facing greater challenges than ever to protect themselves from those presenting a risk to their businesses and reputations, along with their standing with government regulators.”

Industry News

Qomply launches direct-to-FCA trade report solution that bypasses ARM

“Certainly, for back-reporting large volumes of data, QomplyDirect removes extra ARM fees by offering the flexibility of sending reports directly to the FCA via a firm’s own infrastructure.”

Executive Moves

BNP Paribas AM appoints Geoff Dailey as Deputy Head of US Equities

“Geoff has more than 20 years’ experience in the industry and as a key, senior member of the team with a strong investment pedigree and leadership profile, he is the natural successor for Pam.”

<