Ukraine Receives Over $7M in Crypto Donations After Airdrop Announcement

Ukraine Receives Over $7M in Crypto Donations After Airdrop Announcement
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Ukraine Receives Over $7M in Crypto Donations After Airdrop Announcement

Ukraine received over $7 million in crypto donations after the country announced that an airdrop is inbound, according to on-chain veri.

  • Ukraine received $1.1 million in ether, $6 million in DOT, and other cryptos, after the announcement on Wednesday. This would take the country’s total crypto donations to over $40 million.
  • Before the airdrop over $33 million in crypto had been donated to Ukraine’s war efforts.
  • An airdrop involves sending free tokens as an incentive for an action. Usually project creators airdrop tokens as a way of building adoption.
  • It’s not yet known what Ukraine’s airdrop would entail. Ukraine has said that any Russian soldier that surrenders would get a payment of approximately $48,000, and crypto could play a role in this.
  • Tax authorities in Ukraine have said that captured Russian equipment such as tanks do not need to be declared as taxable income as “combat trophies…were acquired not as a result of the conclusion of any type of transaction.”
  • However, for Ukraine tax residents an airdrop would likely be taxable income under current guidance. Tax authorities have not given a clear position on the tax liability of an NFT of a captured Russian tank.

Read more: Ukraine Says ‘Airdrop Confirmed’ After Receiving $33M Crypto Donations

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