• Ukraine recently sold its CryptoPunk NFT to support war efforts amid the crypto community’s ongoing support for the war-torn nation.
• The Aid for Ukraine crypto fundraising campaign has so far received more than $135 million in crypto donations.

While one might argue that the high valuations of non-fungible tokens (NFTs) are futile, they are coming up for a good cause. On Monday, June 20, the government of Ukraine announced that it sold a donated CryptoPunk NFT for 90 ETH raising $100,000. Ukraine said that these funds will help the country’s war efforts against Russia.

The Aid for Ukraine crypto fundraising campaign has received several donations over the last three months. Crypto enthusiasts across the globe have been supporting Ukraine financially to overcome the war crisis.

Alex Bornyakov, Ukraine’s Deputy Minister of Digital Transformation made the announcement. Bornyakov is also responsible for overseeing Ukraine’s wartime crypto fundraising efforts. In a tweet on Monday, Bornyakov wrote:

Breaking news on crypto donations: #CryptoPunk #5364 has been sold for 90 ETH. It’s over $100K. Few months ago this NFT was donated for @_AidForUkraine fund. Crypto community continues to support Ukraine.

Non-fungible tokens (NFTs) are blockchain-based tokens that suggest the ownership of a digital asset or a physical asset. Powered by blockchain, NFTs are immutable and he’s in maintaining ownership transparency.

Over the last few years, some popular NFTs have been selling for several thousand dollars or high valuations. However, NFTs have seen criticism coming from some of the top tech personalities. Recently, Microsoft founder Bill Gates called NFTs a greater fool theory investment. In a sarcastic remark, he said: “expensive digital images of monkeys would surely improve the world.”

Ukraine and crypto

Shortly after Vladimir Putin announced the invasion of Ukraine, the war-torn country started accepting crypto donations. So far, Ukraine has reportedly raised $135 million through crypto donations or by selling the donated NFTs.

Ukraine’s Aid for Crypto fund helps in purchasing non-lethal supplies for the country’s military. This includes medical supplies as well as bulletproof vests. The Ukrainian government only endorses and oversees the project. It doesn’t spend any funds received in the form of crypto.

Donations to Ukraine coming in fiat have been much larger. However, crypto donations still contribute a sizeable 40 percent of the amount of the total donations. But reports also suggest that the crypto funds are drying up fast after a good response for the first two months.

On the other hand, the extreme bear market in crypto is adding to the woes. Bornyakov recently made an appeal adding: “Even though Ukraine raised over $135 million in crypto in response to the Russian invasion, the first wave of crypto donations has subsided. We still need your help. Please support our defenders via @_AidForUkraine”.

Amid the broader crypto market correction, sales in the NFT market are also drying up.