Ukraine plans to tap investors to help raise funds after a plunge in prices decimated the country's fundraising efforts in May, after being battered by three months of war.
Following the Russian invasion of Ukraine on February 24, the Ukrainian government used social media to ask for donations of virtual currency. Ukraine's vice prime minister Mykhailo Fedorov was speaking at the World Economic Forum in Davos this week.
On May 19 the total raised was worth $51.5 million, Ukraine's deputy minister for digital transformation Alex Bornyakov said.
In the last few weeks,cryptocurrencies have fallen sharply. The risks faced by holders of highly volatile assets have been highlighted by the loss of more than 20% of its price in May, after a 17% drop in April.
The aid for Ukraine funds were all held in digital currency, but the government was able to spend $45 million on equipment for Ukraine's army before the crash, Bornyakov said in written responses to Reuters questions.
Ukraine has been funding its war effort with cryptocurrencies. The year before the war, a rise in donations to Ukrainian volunteer groups provided equipment to government forces.
Kiev estimates it needs $15 billion over the next three months to recover from its war-torn economy, although it may provide some much-needed funds.
Despite the volatility, cryptocurrencies appeal to Ukrainians who are looking to raise funds.
Ukraine's largest independent beer brand, Obolon, plans to sell non-fungible NFTs to help it distribute free water for humanitarian aid.
It is the lead of Ukraine's Ministry of Digital Transformation, which raised 286 ether around $550,000 with its online Museum of War NFT collection.
After the war, Obolon plans to sell 5,000 NFTs for 0.1 ether around $200, which can be exchanged for a commemorative beer bottle.
Olexander Chub, the director of foreign trade of Obolon, said in a video interview that the project is intended to help us continue to scale, because the financial situation in the company is difficult because the economic situation in Ukraine is very difficult.