LONDON (Reuters) – Ukraine has begun auctioning a collection of non-fungible tokens (NFTs) as part of a cryptocurrency fundraising campaign that has raised more than $65 million for its war effort, according to Kyiv.
The Meta History: Museum of War collection is a collection of digital pictures representing a particular day in the fight, including silhouettes of jets, screengrabs of news headlines, and a cartoon-style representation of an explosion.
A cryptocurrency is an encrypted digital or virtual currency that prevents forgeries and double-spending. Many cryptocurrencies use Blockchain technology, a global network of computers that enforces a distributed record. The government doesn’t issue Cryptocurrencies that differ from traditional currencies, which means they are resistant to government intervention or manipulation.
Bitcoin is the most well-known and valuable cryptocurrency. In 2008, a mysterious entity known only as Satoshi Nakamoto released a white paper claiming to be the creator of bitcoin and offering it to the rest of the world. There are hundreds of cryptocurrencies on the market right now.
Each cryptocurrency claims to have its unique set of characteristics and features. Ethereum's ether, for example, is used to power the infrastructure of the smart contract platform. Banks use Ripple's XRP to ease cross-border payments.
Bitcoin, made available to the public in 2009, is the most traded and covered cryptocurrency. There were around 18.8 million bitcoins in circulation as of November 2021, with a market valuation of $1.2 trillion. There will only ever be 21 million bitcoins created.
Following Bitcoin's popularity, a slew of new cryptocurrencies known as "altcoins" emerged. Some are forks or clones of Bitcoin, while others are whole new currencies. Some examples include Solana, Litecoin, Ethereum, Cardano, and EOS. The market capitalization of all cryptocurrencies has topped $2.1 trillion by November 2021, with Bitcoin accounting for around 41% of the amount.
Ukraine's Ministry of Digital Transformation began accepting donations in digital currencies such as bitcoin and ether three days after initiating an invasion of Russia in what Moscow described as a "special military operation."
According to a post on the archive’s website, the new NFT series was to “communicate facts throughout the worldwide digital community and raise money to support Ukraine.”
Last year, a cryptocurrency known as NFTs (non-fungible tokens) gained popularity. They use bitcoin technology to determine who owns digital assets like photos, videos, and texts.
According to Ukraine’s deputy minister for digital transformation Alex Bornyakov, they used the country’s crypto contributions to buy protective vests, helmets, medals, and medications for its soldiers.
Many commentators questioned why so much money is spent on products that don’t exist, given the tremendous development of NFT sales.
Nonetheless, they have become a popular fundraising tool in recent months, with groups of individuals combining their crypto assets to buy NFTs to promote awareness for a specific cause.