Ukraine cancels crypto airdrop rewards

ukraine cancels crypto airdrop rewards

Specifically, the Ethereum software company and MetaMask developer is being accused of illegally transferring intellectual property and subsidiaries to a new entity called ConsenSys Software Incorporated.

Key takeaways

  • According to the claims, JPMorgan Chase and other traditional financial institutions now have a substantial stake in MetaMask and Infura.
  • ConsenSys is strongly refuting the accusations and appears more than ready for a legal battle.

Bitcoin ban removed from EU MiCA directive

The controversial language that suggested a ban on proof-of-work cryptocurrencies would take place in the European Union has been removed from its Markets in Crypto-Assets directive after European MP Stefan Berger delayed its Feb.


Bitcoin, Ethereum and USDT.

BTC – 357a3So9CbsNfBBgFYACGvxxS6tMaDoa1P

ETH and USDT (ERC-20) – 0x165CD37b4C644C2921454429E7F9358d18A45e14

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

And because things are going so well, Vice Prime Minister Fedorov also posted a donation address for Dogecoin shortly afterwards, noting that Dogecoin is currently worth more than the ruble. With a good half a million Dogecoin, Ukraine has only brought in 70,000 dollars so far.

@dogecoin exceeded Russian ruble in value.
We start to accept donations in meme coin. Now even meme can support our army and save lives from Russian invaders. $DOGE owners of the world, @elonmusk, @BillyM2k, let’s do it.

The crypto community have banded together to support Ukraine, and the donations have been considerable.

Meanwhile, the ejection of Russia from SWIFT has turned the conversation to whether crypto can be used to avoid the effects of the sanctions. In any case, it’s becoming clear to the world that the crypto asset class can have huge potential in times of turmoil.

Crypto Contributing Heavily to Ukraine

Since Ukraine began accepting crypto donations, the headlines have been arriving fast and strong.
Over $50 million has been donated so far, including from some of the crypto industry’s biggest names.

The West has stated that it does have some concerns with respect to the crypto market. The concern primarily relates to Russia using the crypto market to mitigate some of the effects of the sanctions.

The vast majority of Ukraine’s Ethereum donors sent funds in the short window when officials were promising rewards via a governmental crypto airdrop.

After Ukrainian officials canceled it, donations dwindled to a trickle, reports Mashable. Most transactions to Ukraine’s Ethereum wallet occurred during the first three days of March.

On those particular days, donors believed they were going to receive a potentially lucrative airdrop, either of an undisclosed amount of a newly Ukraine-backed cryptocurrency or a potential commemorative NFT.

Ukraine initially announced that it would snapshot Ethereum donations on March 3 at 6:00pm Ukrainian time and release an airdrop reward soon thereafter.

During the 24 hours following the announcement, Ethereum donations rose to a staggering 33,600 transactions.

Fedorov apparently understands a basic truth of the crypto scene: give a crypto whale the pinky in publicity and it will throw both hands at you.

On Tuesday, the Ukraine account posted a polkadot address to signal that it also accepts donations in the cryptocurrency DOT . Unfortunately, Polkadot’s block explorers only show the current balance, but not how much an account has received so far.

The current balance of the address is about 1 million dollars, which arrived in 2735 transactions. Since Polkadot founder Gavin Wood alone donated 5 million dollars more than 6 million dollars should have been raised.

Stand with the people of Ukraine.

Now accepting cryptocurrency donations.

Every day there are more and more people willing to help Ukraine to fight back the agression. 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

Holger Rehm from the Blockchain Center comments on the cancellation of the airdrop with the words: “Best. rug pull. Ever.”

Best. Rugpull. Ever. https://t.co/p63FrDpd1b

— Holger 🌈 (@rohmeo_de) March 3, 2022

A “rug pull” describes a fraudulent maneuver in the crypto scene: developers announce a project, collect coins for it – and then leave it.
They pull the rug out from under the investors’ legs.

If you now ask where the miners are located, it becomes grotesque: after the mining exit from China, Russia of all places became the home of numerous miners. It is conceivable that Russia will benefit more from the airdrop than Ukraine.

In the meantime, people are rowing back there anyway.

Digital Minister Fedorov tweets that the airdrop is now being dropped “after careful consultation”. Instead, an NFT will soon be issued to support the Ukrainian armed forces.

Such non-fungible tokens could inherently perform the same or similar functions as fungible tokens. But they have the advantage that the tokens are individual, creating a kind of art and auction market for memes. You could practically buy sponsorship for Ukrainian soldiers and their heroic deeds.

After careful consideration we decided to cancel airdrop.

Russian occupiers to their side.

Should Ukraine resist the attack, or should Russia leave the country after a peace agreement, the crypto donations could help with reconstruction.

Downsides

Despite all the appropriate solidarity with Ukraine, one thing should not be forgotten: it is one of the most corrupt and criminal countries in Europe. And this crime does not stop at cryptocurrencies either.

If the government is currently demonstrating how competent and innovative it is at soliciting crypto donations, it could also be an indication that the shady, often bordering on the fraudulent, ICO and token economy has gained a very wide foothold here, perhaps even into the heads of the digital ministry.

I remember, anecdotally, that several years ago, Ukrainian PR agencies specializing in ICOs were well represented in the Bitcoin conference audience.

Of course, this is not yet fraud, but in many cases it is knowingly or unknowingly assisting in it.

It is also conceivable that whoever controls the official Ukraine account – presumably Digital Minister Fedorov or one of his allies – will save the coins so that they can arrive abroad well-padded in the event of an escape. Or simply to enrich themselves when the world’s attention migrates to the next crisis.

Finally, one should also not forget that Putin’s constant references to “Ukrainian Nazis” are not entirely built on hot air.

Combat units with neo-Nazi roots, such as the Azov regiment, are particularly common among combat troops in eastern Ukraine, where Come Back Alive donates military equipment. According to reports, ultra-nationalist combat groups in Ukraine are also attracting militant neo-Nazis from all over the world, including Germany.

But if you take an interim result here, you get more than 60 million dollars.

But what are the cryptocurrencies bringing to the country? Probably not that much at the moment. No amount of money in the world can stop Russia’s advance, and even freshly bought military equipment will probably take too long to arrive.

Eventually, it will be possible to use bitcoins to encourage Russian soldiers to lay down their arms. Anonymous hackers are already trying to do this , and Ukraine is also offering money to Russian deserters. To what extent that will make the soldiers forget that desertion is punishable by death is another question.

In the medium or long term, this financial aid to Ukraine can play a major role. It can help the country stock up on food and military equipment to hold out longer in an ongoing conflict.

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