Notes

War bonds, NFTs , and crypto What are they? Ukraine can finance its defense

The central point of the current fundraising effort to raise funds for Ukraine was a naked-bones office that was situated above a bakery located in northern London.

Isaac Kamlish and Nathan Cohen between the ages of 23 and 25 They gathered around their computers earlier this week to assist in launching the first ever auction of unique digital collectibles by the federal government.
Kyiv was capable of selling over 1,200 tokens that are non-fungible.
This auction made use of blockchain technology to provide the necessary wartime finance. It shows the way that Ukraine's government utilizes both traditional and innovative tools to generate money to support its efforts in surviving the current crisis.
NFT backed by Pussy Riot member raises $6.7 million to Ukraine

One approach is to go back to the past. Kyiv has raised nearly $1 billion via the sale of war bonds to Ukrainian citizens and institutions. The Ukrainian population is willing to lend money to the government, even though it is not certain they will get the full amount back.
The administration of President Volodymyr Zensky also urges prospective donors to send cryptocurrencies directly to the world. This initiative has brought in $56 millions according to Chainalysis. On Wednesday, NFT sales saw many collectors from Los Angeles up to Barcelona take part in what was deemed to be a crucial moment for both the crypto market in Ukraine and their country.
"The Ukraine War is Devastating, and it Will Be In the History Books," said Ben Jacobs who was the co-founder of Scenius Capital. an investment firm that invests in digital assets. "This crypto-technology use is historical in its own right."
Jacobs Jacobs, a California resident, bought two NFTs for $1,100 with a few small charges. The Ukrainian government received about $1,000 in Ethereum, the currency used in NFTs ' sales.
A fundraising rush
In Europe and the United States, people have been showing their solidarity with Ukraine by placing yellow and blue flags on buildings, hosting local events and updating their avatars on social media.
Zelensky's team requires more than just gestures and words. Kyiv is in need of money to run its government and to arm its military. According to the Ukrainian government that the war could have cost Ukraine $565 billion. Its economic output for 2020 was $155 billion.
"Our fiscal deficit is larger than we anticipated at the beginning of this year" Yuriy Butsa from Ukraine, the head of the department for public debt management, told CNN Business. This refers to the gap between government revenue and spending.
In the five weeks since Russia invaded, the government has made an unprecedented effort to raise money on a global basis.
Viktor Szabo a fund manager at Abrdn (UK-based) declared that these guys are creative.
A man wearing a ribbon featuring the colors of the Ukrainian flag is seen with a smartphone in Barcelona in Mar. 1.

Kyiv employed tried-and-tested methods to raise funds. Ukraine has already received emergency financing of $4 billion from multilateral organisations such as the International Monetary Fund or World Bank. Additional $2 billion is under negotiation.
The company also uses the traditional war bonds. These are bonds issued by governments during a conflict to boost support. They can be helpful in fighting inflation because they help keep money out of circulation during times of usually an issue with.
Five local currency bond sales during March helped Ukraine raise approximately $1 billion. Butsa claimed that there was an enormous demand from both institutions and individuals. The money goes to the pot of the government and are utilized to pay for expenses like paying pensions and emergency services.
Butsa said that "a large number of people are buying $5,000, $10,000 of these instruments."
You need to be a little skeptical about buying these bonds in the moment of uncertainty. One-year notes last month yielded 11%. https://www.bitstamp.net/ shows the high risk of these bonds. The repayment isn't guaranteed when Zelensky's regime is overthrown or sent into exile, and a long war damages the Ukrainian economy.
S&P Global Ratings reduced its rating for Ukraine's credit just after the invasion. The report stated that although the international community has been expected to assist Ukraine with its financial requirements over the course of 12 months, there is still the possibility of "governance interruptions" which could lead to commercial debt servicing being at risk.
Butsa claimed that the Ukrainian government is currently working "24/7" with bankers to come up with a brand new dollar bond which could be offered to foreign investors, many of which are eager to back Kyiv but are held back by capital controls that block them from obtaining returns in Ukraine's currency, as well as other logistical issues.
Butsa declared that the idea was to provide an instrument that anyone who wants to support Ukraine who is in the United States and with an account at local banks, can easily contribute to us. Butsa's team is also considering options within the European Union.
Despite the support of Ukraine professionals- who have a duty to safeguard their clients' money -- may be nervous about lending money to Ukraine's government right now, even if it can locate a way to provide bonds to foreign investors.
"We shouldn't invest in an asset where we have a significant chance of the money not getting returned," Szabo said, though he added that his opinion is that the market may get attractive again after the war ends.
Working the crypto angle
Because Ukraine isn't interested in increasing the amount of debt it has, it's attractive to consider alternatives to financing that don't require borrowing.
Butsa stated, "We don't wish to be in a position where the war is moving to the stage of reconstruction with a higher cost for the credit services than we do to build infrastructure."
These are the places where NFT transactions or cryptocurrency donations can come in. Ukraine has been encouraging its citizens, for many weeks, to transfer bitcoins or any other digital currencies onto official social media accounts. The initiative has provided the government access to a huge group of small donors that don't have to be concerned about complicated financial agreements or currency exchange.
Chainalysis reported to Chainalysis CNN Business that Kyiv had collected around $56 million of cryptocurrency as of March 28. The median contribution was $30. Alex Bornyakov was Ukraine's deputy Minister of Digital Transformation. He claimed that the money was used to purchase bulletproof vests. helmets. walkie-talkies. and even medicine.
In protest of the Russian invasion, protesters sit under a massive Ukrainian flag.

A deal by UkraineDAO of a NFT for Ukraine's Flag, which was also backed by a member of the Russian militant group Pussy Riot raised more.
This week, the first official NFT Auction was a brand new phase in the campaign. Worldwide supporters bought digital images created with local artists. https://cryptoblogstar.com/what-is-a-green-cryptocurrency-and-does-it-exist/ incorporated vibrant imagery and artifacts of war such as tweets.
Kevin Lista Navarro is a 26-year-old financial adviser from Barcelona. He has previously given money to people in need from Ukraine. He thought of NFT auctions as an excellent opportunity to buy two.
"Thanks to this new technology, you can now can give back to the cause and also receive in return a piece of commemorative artwork," he said. These could be worth something in the future.
After sending cold emails to representatives of the Ukrainian government, Kamlish Cohen, and Bentata (the London team whose the nascent platform FAIR.xyz was used in the sale), Bentata, Cohen and Cohen were given the chance to join the team. In the last two and a half weeks, they've been pulling late nights and running on adrenaline in order to get the project off the ground.
Bentata stated that "it's been absolutely insane."
Kamlish explained that the process was smooth despite the volume of traffic to website which could be the result of malicious actors.
Jacobs of Scenius capital stated, "How Ukraine has really turned to crypto to gain financial backing... It demonstrates how governments lean into crypto and NFT technology instead of rebelling against it due to it being brand new and terrifying."

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