Charity

David Bowie unreleased record debuts as music NFT

Gala Music, a Web3 startup subsidiary, is launching 3,003 NFTs on April 14, with an unreleased version of David Bowie’s “Let’s Dance” included.

A previously unreleased version of David Bowie’s “Let’s Dance” has surfaced as part of a limited edition collection of nonfungible tokens (NFTs).

Gala Music, a subsidiary of the Web3 startup Gala Games, has joined forces with music producer Larry Dvoskin and publisher Warner Chappell Music to unveil an unreleased version of David Bowie’s 1983 track “Let’s Dance” as part of a limited edition collection of NFTs. The announcement was made on Thursday, March 6.

David Bowie created an impressive discography that included 27 studio albums, 11 live albums, four soundtracks and 128 singles during his lifetime. However, despite his passing in 2016, the singer-songwriter still has at least one unheard track.

Gala Music plans to launch 3,003 NFTs that showcase Bowie-inspired artwork on April 14, four decades after the original release of “Let’s Dance.“ Each NFT will grant its owner exclusive access to an unreleased version of the song, which Dvoskin co-produced with Bowie in 2002.

The NFTs will be available for purchase on a “pay-what-you-wish” basis, and the initial profits from the sales will go toward supporting MusiCares, a charity offering health and human services to individuals in the music industry.

Related: Huobi partners with Gala Games for L1 and Web3 development

The upcoming release next week will not be the first time the Bowie estate has ventured into blockchain technology. In September 2022, the Bowie estate collaborated with OpenSea NFT marketplace to introduce a collection of NFTs called “Bowie on the Blockchain” to raise charity funds. However, this collection faced significant criticism from Bowie’s supporters, who viewed the foray into blockchain as contradictory to the artist’s principles and beliefs.

Gala Games is primarily recognized for its Web3 gaming initiatives, allowing developers to create play-to-earn crypto and NFT games, but it has also expanded its interests to include music and film.

Magazine: 2023 is a make-or-break year for blockchain gaming: Play-to-own

Crypto donations amplify speed and global reach during crisis

Cryptocurrencies are proving useful in facilitating fast and unencumbered donations during crises, as recently seen during earthquake relief efforts in Turkey and Syria.

Since devastating earthquakes hit parts of Turkey and Syria in February, blockchain analytics firm Chainalysis estimates that around $5.9 million of crypto donations have been made to support relief efforts in the region.

The Turkish Ministry of Interior’s Earthquake Humanitarian Aid campaign, the Turkish Red Crescent, Save the Children and Project Hope have all received cryptocurrency-based donations. In addition, several cryptocurrency exchanges, including Binance, Bitfinex, OKX and KuCoin, donated more than $9 million to support victims in the area.

Cointelegraph reached out to Chainalysis to unpack the methodology used to monitor crypto-based donations supporting disaster relief efforts in Turkey and Syria.

Chainalysis director of research Kim Grauer said the firm uses a combination of human intelligence, gathered by its experts, and proprietary heuristics to identify and monitor flows to cryptocurrency services. This includes organizations accepting donations and scams that have sought to divert donations from unwitting supporters.

Grauer believes that the speed of transactions and the global nature of cryptocurrency transactions are proving to be important means of providing quick monetary support during times of crisis:

“Cryptocurrency is cross-border, instantaneous, and liquid, making it an ideal technology for raising funds and getting them to where they are needed most quickly.”

Grauer also highlights the ability to accurately monitor blockchain data as another strong argument for the utility of cryptocurrencies in facilitating donations and support after disasters and major emergencies:

“The transparency of blockchains is a unique benefit to cryptocurrency, providing opportunities to aid organizations to track donations and for law enforcement agencies to identify and trace illegitimate schemes attempting to capitalize in times of crisis.”

Antonia Roupell, Web3 operations lead at Save the Children, told Cointelegraph that the organization first accepted Bitcoin (BTC) as a donation method in response to Typhoon Haiyan, which ravaged the Philippines in 2013. From 2020 onwards, the charity has raised $7.4 million in cryptocurrency donations.

Related: Ukraine netted $70M in crypto donations since start of Russia conflict

This has continued during the organization’s earthquake relief work in Turkey and Syria. Roupell highlights many benefits of crypto-based donations compared with fiat-based donations.

“The vast majority of our crypto donors are first-time donors to Save the Children so crypto has enabled us to access a new and growing supporter base.”

Blockchain functionality also powers recurring giving, according to Roupell. In 2021, Save the Children received a number of Ethereum donations from nonfungible token (NFT) sales, some of which coded future donations through the smart contract functionality of specific NFTs.

Roupell also highlights tax benefits in the United States for donating cryptocurrency to charity, which has led to an increase in donations at the end of the financial year. She also notes that crypto donations are, on average, significantly higher than fiat ones.

While highlighting positives, Roupell said a downside was the anonymity of most cryptocurrency donors, which rules out the ability to thank benefactors for their contributions.

Roupell believes there is great value in blockchain-based solutions to facilitate and support aid efforts around the world, and that humanitarian organizations will have an increasingly key role to play in integrating and scaling access at grassroots levels:

“Cryptocurrency is a great donation vehicle, but the underlying technology, peer-to-peer electronic cash, is truly revolutionary for economic inclusion.”

The charity supports a variety of cryptocurrencies accepted by the crypto donation platform, The Giving Block. Roupell said the organization does “not endorse, promote or pass judgment” on any specific tokens. It also accepts global fiat currencies and stocks, with a priority to raise urgent funds to support global humanitarian responses.

Charity tied to former FTX exec made $150M from insider deal on FTT tokens: Report

The former FTX chief of staff reportedly “donated” FTT tokens he had obtained at a price of $0.05, later selling them after public trading opened for $1.

Polaris Ventures, a charity created by former FTX and Alameda chief of staff Ruairi Donnelly, reportedly wants to access roughly $150 million earned from sales of employee tokens frothe bankrupt exchange.

According to a Feb. 14 Wall Street Journal report, Donnelly received roughly $562,000 in salary during his time at FTX, which was converted into FTX Token (FTT) at a rate not available to the public — $0.05. The former executive reportedly “donated” the tokens to Polaris Ventures, selling them at a price of $1 after public trading opened in 2019 and 2020 and making millions.

FTX filed for Chapter 11 bankruptcy in November, at which time when many wallets and funds tied to the exchange were seized by authorities or otherwise frozen for legal proceedings. Donnelly reportedly seeks to cash out the $150 million amid public scrutiny of FTX and Alameda and their former CEOs.

Donnelly’s legal team reportedly said the charity’s FTT tokens “were not FTX’s funds” and seemingly not subject to claims from other parties. Debtors for the exchange said on Dec. 19 they would “make arrangements for the return” of funds donated to charities or political campaigns and suggested legal action to obtain payments with interest should any group refuse.

Related: Who has returned donations or contributions from FTX amid the firm’s reputational risks?

Amid FTX’s bankruptcy proceedings in the United States, some regulators have announced investigations into charitable organizations. The Charity Commission for England and Wales said in January that it had launched an inquiry into Effective Ventures due to FTX being a “significant funder” of the group.

Update (Feb. 15 at 3:01 AM): This article was updated to reflect changes to the Wall Street Journal article regarding the use of the word ‘insider’. Ruairi Donnelly reportedly made profits from obtaining FTT tokens at a lower price and selling them for a higher one.

The Web3 community responds to Turkish–Syrian earthquake tragedy

In the aftermath of a deadly 7.8-magnitude earthquake in southeastern Turkey, the Web3 community has come together to raise awareness and aid for victims of the disaster.

A massive earthquake hit southeastern Turkey along the border with Syria on Feb. 6, which has so far caused the death of more than 5,000 people. The quake had a magnitude of 7.8 on the Richter scale, which is internationally categorized as a “major” earthquake, and occurred along 100 kilometers (62 miles) of the fault line.

Infrastructure in the area suffered major damages, resulting in a deadly cross-border humanitarian disaster.

However, the world was quick to respond. Across the internet and various social media platforms, people have been gathering funds for local and international aid organizations to provide relief to those in the affected areas.

Two of the largest aid efforts in Turkey, AFAD Turkiye, the government agency for such disasters, and the NGO Ahbap, led by philanthropist Haluk Levent, have been at the head of organizing an influx of aid.

Levent announced that his organization has opened up crypto addresses in order to accept aid in various forms of digital currencies.

Refik Anadol, a Turkish artist and art director, also started a crowdfund via an Ether (ETH) address, in which he will transfer the collected funds to both AFAD and Ahbap. 

Within the Web3 space, various companies in the industry have stepped up to provide help, be it in the form of crypto or fiat donations or even physical aid.

Crypto derivatives trader Bitget announced that it would commit 1 million Turkish liras (~$53,000), while Bitfinex, Keet, Synonym and Tether pledged 5 million liras (~$265,500), and Gate.io pledged 1 million liras (~$53,000).

Local Turkish crypto exchange Bitci sent an aid truck to the earthquake zone while announcing that all commission income for the month of February will be donated to Ahbap on behalf of the Kahramanmaraş-centered earthquake. Icrypex announced coordination efforts with AFAD and Ahbap.

BtcTurk told Cointelegraph that, aside from donating 6 million liras ($318,000) to the Ahbap and Akut organizations, the Turkish crypto exchange sent 1.2 million liras ($62,000) worth of clothing aid to the zone in coordination with local governments.

The Turkish branch of ByBit and OKX have both committed to send $100,000 and 1 million liras (~$53,000) in aid, respectively.

Related: DeFi, DAOs and NFTs: Crypto is redefining how charities raise funds

Cointelegraph also spoke with Sebastien Borget, co-founder and chief operating officer of The Sandbox, about his efforts with The Sandbox Turkey to provide on-the-ground support for the local communities. 

“Our thoughts are with the Turkish people today. Together with The Sandbox creator community in Turkey, we are in touch with relevant non-governmental organizations to create a relief fund and support earthquake-affected areas.”

He said together with The Sandbox Turkey, they’ve helped fill a truck with urgent supplies for the victims and people affected and look for options for more long-term support.

Source: Sebastien Borget

Nonfungible tokens (NFTs) have also been mentioned as a possible way of fundraising for the disaster. 

Turkish NFT artist Pak tweeted about an ETH donation to Ahbap, along with plans for an NFT initiative for long-term support. Gate.io, in its proposal, also mentioned developing an NFT aid initiative for additional support in the near future.

This is a developing situation that Cointelegraph is monitoring. This article will be updated with any relevant information.

UK regulator investigates charity linked to FTX

The Charity Commission opened the inquiry on Dec. 19 after FTX had filed for bankruptcy in the U.S. and former CEO Sam Bankman-Fried was arrested.

The commission in charge of regulating registered charities in England and Wales has announced it has begun investigating Effective Ventures Foundation, an organization tied to bankrupt crypto exchange FTX.

In a Jan. 30 announcement, the Charity Commission said it had launched the inquiry due to FTX being a “significant funder” of Effective Ventures. According to the commission, Effective Ventures reported its ties to FTX as a “serious incident” potentially affecting other assets, opening the door for the regulator to investigate its trustees.

“There is no indication of wrongdoing by the trustees at this time,” said the commission. “However, there are indications of potential risks to the charity’s assets, and the inquiry has been opened to establish facts and help ensure the trustees protect the charity’s assets and are running the charity in line with their duties and responsibilities.”

The Charity Commission reported that the trustees were “cooperating fully” as part of the investigation, and it will release a report on its findings. The regulator opened the inquiry on Dec. 19 — after FTX had filed for Chapter 11 bankruptcy in the United States and former CEO Sam Bankman-Fried was arrested in the Bahamas.

Related: Sam Bankman-Fried seeks to access FTX funds

In the U.S., charitable organizations that previously benefited from FTX funds have reportedly been targeted amid the exchange’s bankruptcy proceedings — the firm made millions of dollars in donations to various groups and causes. Many political campaigns have pledged to return funds tied to FTX or Bankman-Fried, but it’s unclear whether businesses and investors will be forced to legally “refund” the exchange’s debtors.

Binance Charity to provide over 30K Web3 scholarships in 2023

Among the education centers involved include colleges in Australia, Cyprus and Germany, Nigerian-based tech hub Utiva, Women in Tech, and two Ukrainian organizations.

The philanthropic arm of Binance — Binance Charity — is set to fund 30,655 scholarships to students keen on forging a career in Web3 in 2023.

The Binance Charity Scholar Program (BCSP) will provide free Web3 education and training courses which will enable tech-savvy students to upskill without having to leap-frog any unnecessary financial barriers, Binance Charity explained, in a Jan. 20 blog post:

“We recognize that digital education and skills development can be out of reach for many, resulting in a blockchain industry that lacks diversity and talent. The Binance Scholar Program changes all that, covering the costs of tuition and course fees at some of the world’s leading universities, colleges and vocational training providers.”

The blog post stated that over 82,000 applicants were interested in becoming a part of the next BCSP cohort, which equates to an acceptance rate of about 37%.

Amongst the education partners getting involved include University of Western Australia, University of Nicosia in Cyprus, Frankfurt School of Finance & Management in Germany, and Nigerian-based technology hub Utiva.

French-based tuition-free training center Simplon, Women In Tech, Kyiv IT Cluster and Ukraine’s Ministry of Digital Transformation will also host some of BCSP’s events.

Binance Charity said they partnered with the Ukraine-based departments to help re-train Ukrainians who may have lost their jobs due to the war with Russia.

The partnership with Women In Tech will endeavor to train about 3,000 women in rural South Africa and Brazil to support future female entrepreneurs.

Binance Charity will also receive partnership support from Binance Academy — the company’s non-profit blockchain education portal.

In 2022 alone, Binance Charity raised more than $3.5 million — most coming in the form of Binance USD (BUSD) — which helped fund over 290,000 hours of Web3 education and training courses.

Related: Education is key to driving sustainability in blockchain and beyond

Binance Charity Head Helen Hai said interest in the program continues to grow in spades:

“The response to our Web3 education projects has been unprecedented, showing the keen appetite of so many people to learn about blockchain, De-Fi, NFTs, coding and much more.”

“We’re seeing interest from a diverse range of people, including a great ratio of women […] With so many more education initiatives with amazing partners in the pipeline, we’ve never been more excited to build a more inclusive Web3 world,” she added.

Binance Charity did not confirm when the more than 30,000 positions would be filled or when each of the scholar programs would start.

Who has returned donations or contributions from FTX amid the firm’s reputational risks?

Politicians and news organizations have reportedly planned to return roughly $6.6 million in donations from FTX — a mere fraction of the crypto exchange’s estimated contributions.

Before its downfall, crypto exchange FTX and its then-CEO Sam Bankman-Fried had been some of the most prolific spenders in the space, bailing out crypto firms and donating to political campaigns and media outlets. With more than 1 million FTX creditors looking to be made whole, what’s happening with these funds?

Bankman-Fried said in May he had been willing to donate between $100 million and $1 billion to lawmakers as part of elections in 2024. Bloomberg reported on Dec. 12 — hours before SBF’s arrest in the Bahamas — that his total donations could be at least $73 million, given directly to candidates or through political action committees (PACs).

Though many of Bankman-Fried’s and FTX’s donations to Democrats were noted with the Federal Election Commission as part of the public record, the former CEO implied in a December interview that Republicans had received roughly the same amount in “dark” donations. North Dakota Senator John Hoeven, a Republican, reportedly donated to the Salvation Army the $11,600 he received from SBF and former FTX Digital Markets co-CEO Ryan Salame.

The Democratic National Committee, Democratic Senatorial Campaign Committee and the Democratic Congressional Campaign Committee all reportedly pledged to return more than $1 million in donations from SBF they had collectively received since 2020. CNBC reported on Dec. 20 that the Senate Majority PAC — supporting Democratic candidates — planned to return the roughly $1 million received from Bankman-Fried and $2 million from former FTX engineer Nishad Singh.

U.S. President Joe Biden, whose 2020 presidential campaign accepted $5.2 million in donations from Bankman-Fried, has not commented on what he intends to do with the funds. Texas gubernatorial candidate Beto O’Rourke — a Democrat who lost his race against incumbent Greg Abbott — reportedly returned a $1 million donation from SBF prior to the 2022 election. New York Representative Hakeem Jeffries and Illinois Senator Dick Durbin have also reportedly donated funds they received to unnamed charities.

These estimates suggest roughly an additional $5 million available to creditors following bankruptcy proceedings, solely from FTX’s political contributions.

Along with lobbying politicians, FTX and SBF were directly responsible for loans and grants to news organizations in and out of the crypto space. On Dec. 9, the CEO of crypto news site The Block resigned after accepting and failing to disclose two loans totaling $27 million from Alameda Research, as well as a reported $16 million loan used to purchase property in the Bahamas.

It’s unclear whether The Block or its former CEO is willing to make some FTX investors whole by restructuring. However, Axios reported on Dec. 20 that nonprofit news organization ProPublica planned to return $1.6 million it had received from Bankman-Fried’s family foundation as part of a grant, with the funds sent to a separate account until authorities determine the best course of action.

Total estimated returns? $6.6 million.

On Dec. 19, FTX announced a “voluntary return” plan for recipients of contributions from the crypto exchange or its executives, hinting at legal action if the funds were not returned. It’s unclear whether all funds will be required to be returned to FTX debtors handling the bankruptcy and reimbursing creditors, or if third parties have the option of sending funds directly to the latter.

Related: FTX exec revealed as big donor to Oregon Democrats following misidentification

Bankman-Fried’s legal team reportedly said on Dec. 19 that the former CEO would not fight extradition proceedings to the United States, where he would face charges related to violations of campaign finance laws, wire fraud and securities fraud. He could be looking at a 115-year sentence if convicted.

What the Russia-Ukraine conflict has revealed about crypto

Cryptocurrencies are being used to provide military and humanitarian aid in the Russia-Ukraine conflict.

The Russia-Ukraine conflict has tested the capabilities of crypto in a real-world conflict where sanctions and inventive blockchain crowdfunding models abound.

The war, which is drawing into its ninth month, has uncovered a raft of blockchain benefits, such as the capacity to support humanitarian endeavors. It has also revealed how much control national authorities can exert over crypto networks.

Vadym Synegin, co-founder at IT and crypto solutions provider Tecor, told Cointelegraph that cryptocurrencies have a unique advantage in situations where there is an increased risk of money transfer interruptions due to the centralization of conventional systems.

“With most markets controlled by centralized authority figures that can easily buckle under the political tensions, the crypto markets remain more or less decentralized, meaning that their operational efficiencies during periods of crisis are further enhanced,” he said.

So, what other aspects has the Russia-Ukraine conflict revealed about crypto?

Crypto donations for humanitarian aid

The Russia-Ukraine conflict has shown that cryptocurrencies can be used for fundraising in military conflicts. Notably, the Ukrainian government began accepting crypto donations at the beginning of the year in a bid to enhance donor inclusivity, and this led to the creation of the Crypto Fund of Ukraine.

The nation’s Ministry of Digital Transformation is currently in charge of the fund, which was set up in conjunction with Kuna, FTX and Everstake to buttress Ukraine’s humanitarian aid and military programs. The project has enabled the Ukrainian government to raise over $100 million in cryptocurrency donations so far.

That said, some pro-Ukraine crypto fundraising groups have turned to novel crypto instruments such as decentralized autonomous organizations (DAOs) to raise funds for the nation.

The UkraineDAO, which is among the most prominent of the lot, was created in February for the sole purpose of providing monetary support to Ukrainian soldiers. The project’s co-founders include Russian critic Nadya Tolokonnikova, who is also a founding member of the Pussy Riot feminist protest group. Other UkraineDAO founding members include PleasrDAO and Trippy Labs, a generative NFT studio. The project has raised over $8 million so far.

Among the most notable successes of the UkraineDAO was the recent sale of a nonfungible token (NFT) of the Ukrainian flag that fetched just over $6 million in Ether (ETH). It is currently ranked among the top 20 most expensive NFTs of all time.

Recent: Does the IMF have a vendetta against cryptocurrencies?

Cointelegraph had the chance to speak with Kayla Kroot, the co-founder of the Koii Network, regarding the current use of crypto in the Ukraine situation. Her company is involved in the development of novel blockchain models, including Web3.

According to the executive, cryptocurrencies have enabled citizens caught up in the war to maintain access to their money during these trying times:

“Cryptocurrency was developed to help global citizens maintain control of their money.” 

Kroot also noted the increased use of digital coins by humanitarian groups operating in the nation. “Organizations such as World Central Kitchen performed crowdfunding campaigns. In WCK’s case, this involved accepting donations in ETH. These funds were dispersed with fewer restrictions and oversight, allowing money to more easily get to the hands of those who needed it most,” she added.

Scammers take advantage of well-wishers

While crypto donations have been helpful in furthering the Ukrainian cause, some malicious entities have blighted noble efforts by well-wishers.

Some scammer syndicates have attempted to beguile donors by pretending to be representatives of authorized crypto exchanges involved in Ukraine fundraising efforts. Cybersecurity experts estimate that millions of deceptive emails employing the tactic have been sent out so far.

Some of the emails contain messages of distress from cybercriminals purporting to be Ukrainians in dire need of financial aid.

The influx of such messages subverts the cause of helping Ukrainians by making it harder for the real victims to get the help they need.

There have also been reports of scam messages being spread on social media platforms. At this juncture, it is important to note that well-wishers should only donate their crypto via official Ukrainian government channels in order to avoid possible scams.

Besides fraudulent posts appearing on social media, scam messages soliciting crypto are also popping up on the dark web.

The dark web is an overlay internet network made up of unindexed websites that are invisible to standard browsers and search engines and can only be accessed using special browsers.

The dark web is intentionally hidden from regular users for a good reason. It harbors all manner of illegal activity that includes black markets for illegal drugs and guns. Blackhats also use the dark web to sell stolen personal credentials.

As such, there is little surprise that scammers are spreading fake messages on the dark web to cheat Ukraine supporters out of funds. Many of the messages have been found to contain links to phishing sites that are designed to steal crypto.

According to a McAfee investigation into the schemes, some of the websites utilize fake chatboxes to simulate user activity, while others make use of mock-up donation verifiers to look more authentic.

Early on in the Russia-Ukraine war, a more sophisticated group of fraudsters attempted to carry out a scam fundraising effort using the Peaceful World (WORLD) token. This is after the Ukrainian government announced an airdrop and then subsequently canceled it.

The scammers launched the fake airdrop hours before the government scrapped the move in favor of NFTs. Industry experts and security analysts were quick to point out discrepancies in the fake giveaway, thereby forestalling the scheme.

Governments can limit crypto

Satoshi Nakamoto, the pseudonymous creator of Bitcoin (BTC), developed the first cryptocurrency in order to devolve the control of money away from governments and centralized financial institutions.

However, the Russia-Ukraine conflict has demonstrated that it’s possible for regional blocs and major jurisdictions to impose bans and exert control over cryptocurrencies.

In October, the European Commission announced sweeping sanctions targeting Russian crypto custodial wallets under the control of European enterprises and exchanges. EU blockchain companies were additionally prohibited from providing crypto custodial services to Russian entities.

The new laws were enacted in response to Russia’s invasion of Ukraine in order to prevent Russia from evading sanctions.

Previous restrictions placed a trade and deposit limit of up to 10,000 euros on Russian crypto wallets and accounts.

Recent EU crypto enactments have forced some major exchanges, such as Binance and Coinbase, which have operations in Europe, to restrict services to Russian individuals and companies to avoid a regulatory clash.

Other regulated crypto exchanges such as Kraken, Crypto.com and Blockchain.com have also ceased providing crypto services to Russian citizens as a result.

Meanwhile, Russian authorities seem unsure of how to handle the flurry of crypto wallet prohibitions and the occlusion of major Russian banks from the SWIFT money transfer system. The ban on these systems has effectively locked out the nation from major international financial markets.

In July, the Kremlin passed a law that banned the use of cryptocurrencies for making payments. However, the Russian government recently changed its tone. In September, the Russian central bank and the Ministry of Finance agreed to allow the use of cryptocurrencies for cross-border payments.

Recent: Bitcoin miners rethink business strategies to survive long-term

The move was designed to promote the use of local crypto exchanges amid rising geopolitical tensions that left many Russians with limited options.

The Russia–Ukraine conflict has showcased the use of crypto in community effort settings for the common good. While the Ukrainian government has raised millions of dollars from direct crypto donations, some digital currency fundraising efforts have been undermined by scammers out to make a profit from the war.

More crypto advantages and limitations are likely to crop up as use cases emerge in more diverse environments.

What the Russia-Ukraine war has revealed about crypto

Cryptocurrencies are being used to provide military and humanitarian aid in the Russia-Ukraine conflict.

The Russia-Ukraine conflict has tested the capabilities of crypto in a real-world conflict where sanctions and inventive blockchain crowdfunding models abound.

The war, which is drawing into its ninth month, has uncovered a raft of blockchain benefits, such as the capacity to support humanitarian endeavors. It has also revealed how much control national authorities can exert over crypto networks.

Vadym Synegin, co-founder at IT and crypto solutions provider Tecor, told Cointelegraph that cryptocurrencies have a unique advantage in situations where there is an increased risk of money transfer interruptions due to the centralization of conventional systems.

“With most markets controlled by centralized authority figures that can easily buckle under the political tensions, the crypto markets remain more or less decentralized, meaning that their operational efficiencies during periods of crisis are further enhanced,” he said.

So, what other aspects has the Russia-Ukraine conflict revealed about crypto?

Crypto donations for humanitarian aid

The Russia-Ukraine conflict has shown that cryptocurrencies can be used for fundraising in military conflicts. Notably, the Ukrainian government began accepting crypto donations at the beginning of the year in a bid to enhance donor inclusivity, and this led to the creation of the Crypto Fund of Ukraine.

The nation’s Ministry of Digital Transformation is currently in charge of the fund, which was set up in conjunction with Kuna, FTX and Everstake to buttress Ukraine’s humanitarian aid and military programs. The project has enabled the Ukrainian government to raise over $100 million in cryptocurrency donations so far.

That said, some pro-Ukraine crypto fundraising groups have turned to novel crypto instruments such as decentralized autonomous organizations (DAOs) to raise funds for the nation.

The UkraineDAO, which is among the most prominent of the lot, was created in February for the sole purpose of providing monetary support to Ukrainian soldiers. The project’s co-founders include Russian critic Nadya Tolokonnikova, who is also a founding member of the Pussy Riot feminist protest group. Other UkraineDAO founding members include PleasrDAO and Trippy Labs, a generative NFT studio. The project has raised over $8 million so far.

Among the most notable successes of the UkraineDAO was the recent sale of a nonfungible token (NFT) of the Ukrainian flag that fetched just over $6 million in Ether (ETH). It is currently ranked among the top 20 most expensive NFTs of all time.

Recent: Does the IMF have a vendetta against cryptocurrencies?

Cointelegraph had the chance to speak with Kayla Kroot, the co-founder of the Koii Network, regarding the current use of crypto in the Ukraine situation. Her company is involved in the development of novel blockchain models, including Web3.

According to the executive, cryptocurrencies have enabled citizens caught up in the war to maintain access to their money during these trying times:

“Cryptocurrency was developed to help global citizens maintain control of their money.” 

Kroot also noted the increased use of digital coins by humanitarian groups operating in the nation. “Organizations such as World Central Kitchen performed crowdfunding campaigns. In WCK’s case, this involved accepting donations in ETH. These funds were dispersed with fewer restrictions and oversight, allowing money to more easily get to the hands of those who needed it most,” she added.

Scammers take advantage of well-wishers

While crypto donations have been helpful in furthering the Ukrainian cause, some malicious entities have blighted noble efforts by well-wishers.

Some scammer syndicates have attempted to beguile donors by pretending to be representatives of authorized crypto exchanges involved in Ukraine fundraising efforts. Cybersecurity experts estimate that millions of deceptive emails employing the tactic have been sent out so far.

Some of the emails contain messages of distress from cybercriminals purporting to be Ukrainians in dire need of financial aid.

The influx of such messages subverts the cause of helping Ukrainians by making it harder for the real victims to get the help they need.

There have also been reports of scam messages being spread on social media platforms. At this juncture, it is important to note that well-wishers should only donate their crypto via official Ukrainian government channels in order to avoid possible scams.

Besides fraudulent posts appearing on social media, scam messages soliciting crypto are also popping up on the dark web.

The dark web is an overlay internet network made up of unindexed websites that are invisible to standard browsers and search engines and can only be accessed using special browsers.

The dark web is intentionally hidden from regular users for a good reason. It harbors all manner of illegal activity that includes black markets for illegal drugs and guns. Blackhats also use the dark web to sell stolen personal credentials.

As such, there is little surprise that scammers are spreading fake messages on the dark web to cheat Ukraine supporters out of funds. Many of the messages have been found to contain links to phishing sites that are designed to steal crypto.

According to a McAfee investigation into the schemes, some of the websites utilize fake chatboxes to simulate user activity, while others make use of mock-up donation verifiers to look more authentic.

Early on in the Russia-Ukraine war, a more sophisticated group of fraudsters attempted to carry out a scam fundraising effort using the Peaceful World (WORLD) token. This is after the Ukrainian government announced an airdrop and then subsequently canceled it.

The scammers launched the fake airdrop hours before the government scrapped the move in favor of NFTs. Industry experts and security analysts were quick to point out discrepancies in the fake giveaway, thereby forestalling the scheme.

Governments can limit crypto

Satoshi Nakamoto, the pseudonymous creator of Bitcoin (BTC), developed the first cryptocurrency in order to devolve the control of money away from governments and centralized financial institutions.

However, the Russia-Ukraine conflict has demonstrated that it’s possible for regional blocs and major jurisdictions to impose bans and exert control over cryptocurrencies.

In October, the European Commission announced sweeping sanctions targeting Russian crypto custodial wallets under the control of European enterprises and exchanges. EU blockchain companies were additionally prohibited from providing crypto custodial services to Russian entities.

The new laws were enacted in response to Russia’s invasion of Ukraine in order to prevent Russia from evading sanctions.

Previous restrictions placed a trade and deposit limit of up to 10,000 euros on Russian crypto wallets and accounts.

Recent EU crypto enactments have forced some major exchanges, such as Binance and Coinbase, which have operations in Europe, to restrict services to Russian individuals and companies to avoid a regulatory clash.

Other regulated crypto exchanges such as Kraken, Crypto.com and Blockchain.com have also ceased providing crypto services to Russian citizens as a result.

Meanwhile, Russian authorities seem unsure of how to handle the flurry of crypto wallet prohibitions and the occlusion of major Russian banks from the SWIFT money transfer system. The ban on these systems has effectively locked out the nation from major international financial markets.

In July, the Kremlin passed a law that banned the use of cryptocurrencies for making payments. However, the Russian government recently changed its tone. In September, the Russian central bank and the Ministry of Finance agreed to allow the use of cryptocurrencies for cross-border payments.

Recent: Bitcoin miners rethink business strategies to survive long-term

The move was designed to promote the use of local crypto exchanges amid rising geopolitical tensions that left many Russians with limited options.

The Russia–Ukraine conflict has showcased the use of crypto in community effort settings for the common good. While the Ukrainian government has raised millions of dollars from direct crypto donations, some digital currency fundraising efforts have been undermined by scammers out to make a profit from the war.

More crypto advantages and limitations are likely to crop up as use cases emerge in more diverse environments.

NFTs and crypto provide fundraising options for breast cancer awareness

Organizations are partnering with NFT projects and accepting crypto donations to draw attention to Breast Cancer Awareness Month.

The hype around nonfungible tokens (NFTs) may be fading, yet a number of organizations continue to implement Web3 initiatives. Nonprofit organizations and activists, in particular, have begun implementing nonfungible token projects to help fundraise and generate awareness for certain causes. 

While these methods are still new, NFT projects for philanthropy have been met with relative success. A recent report from crypto donation platform The Giving Block found that nonprofits using The Giving Block received more than $12.3 million dollars in cryptocurrency donations from NFT-related charitable giving initiatives in 2021. The report further noted that charitable organizations using NFTs are presented with the opportunity to connect with younger donor demographics while diversifying donation methods.

NFT projects for Breast Cancer Awareness Month 

Benefits such as these can be especially helpful for raising awareness around life-threatening diseases. number of breast cancer-focused organizations have started implementing NFTs this October to highlight Breast Cancer Awareness Month. 

For example, Shaney jo Darden, founder of the Keep A Breast Foundation (KAB) — a California-based nonprofit that aims to reduce breast cancer risk — told Cointelegraph that KAB focuses on engaging with younger generations to bring attention to breast cancer. She said:

“Even though women over the age of 40 are typically diagnosed with breast cancer, early detection can result in a 98% survival rate. Given this, KAB aims to generate awareness about breast cancer through encouraging and fun ways, like using NFTs to educate young women.” 

Darden said that last year, KAB hosted an exhibition in the CryptoVoxels metaverse to raise money for breast cancer research. “We wanted to do an event in the Metaverse as opposed to conducting a membership drive or gala, since this opens access globally,” she noted. Based on the success of this, Darden explained that she wanted to continue to implement Web3 initiatives — especially those involving artwork created by women — to generate awareness around breast cancer. Most recently, Darden partnered with the NFT project NFTitties to raise funds for KAB’s breast cancer prevention and educational initiatives. 

Carlota Dochao Naveira, founder of NFTitties, told Cointelegraph that the women-led project celebrates women, art and breasts to raise funds to fight breast cancer. “Emerging artists and activists were invited to submit an artwork representing breasts, following a set of visual guidelines. The artworks were then vetted and, if selected, included in the first release of NFTitties,” she said.

NFTitties #1.14 by Medici_Labs. Source: OpenSea

According to Dochao Naveira, almost 30 NFTs were sold during the first week the project launched on Oct.1. She further pointed out that NFTitties has helped onboard more women into the Web3 ecosystem since the initiative encourages women artists, activists and others to submit their artwork to be presented as nonfungible tokens. 

Other organizations are implementing different forms of NFTs to educate individuals on this type of cancer that affects one in eight women. For example, the women’s handbag designer Vera Bradley announced on Oct. 3 that it will be donating almost 100% of the proceeds generated from its fashion NFT drops to The Vera Bradley Foundation for Breast Cancer.

Jennifer Bova, vice president of marketing at Vera Bradley, told Cointelegraph that to date, the foundation has raised and donated more than $38 million to support critical advancements in breast cancer research. Yet, Bova noted that Vera Bradley has started focusing on marketing in the Metaverse to attract new users by attaching philanthropic utility to its digital and physical fashion NFTs. “Through its NFT PFP backgrounds, Vera Bradley hopes to drive awareness for fundraising, as well as female-led conversations and initiatives in Web3,” she said.

It’s also notable that Susan G. Komen, a leading breast cancer research foundation, recently began accepting crypto donations to enable cryptocurrency holders to give back. Michelle Strong, vice president of marketing strategy at Susan G. Komen, told Cointelegraph that about a year and a half ago, the organization began receiving requests from individuals interested in donating cryptocurrency:

“We implemented this feature nearly a year ago with the help of The Giving Block. This has driven interest from both current and new donors, as crypto donations have opened doors to those who haven’t been able to give before but were interested in being charitable.” 

Based on the successful implementation of crypto donations over the past year, Strong mentioned that Susan G. Komen will be incorporating crypto donations, along with other digital donations received during the week of Oct. 9–15, to fund the organization’s metastatic breast cancer excellence in research award. 

“Oct. 13 this year is ‘metastatic breast cancer’ day, which is the most advanced stage of the disease. Susan G. Komen is giving out the excellence in research award to bolster investment around this specific area of research and cryptocurrency is another great way to support this,” she remarked.

Web3 initiatives are helpful, but not necessarily better

While the use of NFTs and crypto donations to support breast cancer is innovative, these initiatives are still only helpful ways to bring attention to certain causes. For instance, Bova pointed out that driving awareness and funds for breast cancer research in the Metaverse is not necessarily better but rather an additive resource to tap into new donors and volunteers. Echoing this, Darden mentioned that incorporating NFT projects with KAB enables the organization to diversify its funding, yet it hasn’t proven to be a better solution in comparison to traditional fundraising mechanisms:

“Many NFT projects die out over time, so KAB is taking a risk by being a part of certain projects. However, NFTitties has a clear goal and beautiful art that resonates with the KAB community.”

Indeed, even though there are a number of risks associated with NFT projects, nonfungible tokens remain appealing when it comes to increasing user engagement and interest. 

“Susan G. Komen is happy to benefit from NFT projects that others are able to pull together. We are currently in conversation with an NFT project that aims to benefit our organization,” Strong noted.

Yet, it’s also important to point out that, in addition to risks, there are challenges associated with implementing such projects.

According to Dochao Naveira, targeting traditional NFT investors can be difficult when it comes to women-led initiatives “There tends to be a bro-culture in the Web3 space that doesn’t care as much about certain projects. There can also be difficulties with helping mainstream users set up a MetaMask wallet,” she said.

But, as time progresses, Web3 projects aim to incorporate new features to help ease onboarding and educate new users. For example, Carmen Toal, CEO and co-founder of Sprkl NFT Studios — a platform working with nonprofits and individuals to implement NFT technologies — told Cointelegraph that mainstream users typically need more guidance when it comes to participating in NFT projects.

As such, she mentioned that Sparkl NFT Studios incorporates familiarities with charitable NFT initiatives. “We sometimes include a ‘donate now’ button that is not directly attached to an NFT,” she said.

Most recently, Sprkl NFT Studios partnered with the National Breast Cancer Foundation, Inc. (NBCF) on an NFT artwork fundraising campaign for Breast Cancer Awareness Month. Candice Hensley, senior manager of strategic partnerships at NBCF, further told Cointelegraph that working with Sprkl NFT Studios is part of the organization’s strategic plan to diversify its funds.

Sprkl NFT Studios commissioned artist Pola a Yim to create and draw an original flower bouquet for a digital NFT to support Breast Cancer Awareness. Source: Sprkl NFT Studios