Ukraine Sells War Snapshots as NFTs

Ukraine Sells War Snapshots as NFTs

by | Mar 28, 2022 | News, NFTs

In an age of blockchain and crypto, the physical war in Ukraine could be funded by NFTs. Ukraine’s Minister of Digital Transformation announced an NFT collection to illustrate the chronological events of the conflict between Russia and Ukraine. 

The government of Ukraine is selling non-fungible tokens (NFTs) to ensure that all the facts and events of the war between Russia and Ukraine will not be forgotten over time. All the funds collected will be used to support the army and civilians in the atrocious war.

Ukraine’s invasion 

On February 24th, 2022, Russia started to invade Ukraine. The entire world was in shock, including Russian citizens. Nobody ever believed that the threats of the Russian president, Vladimir Putin, would ever come to ve true. We were all wrong. 

Ukraine’s invasion has been going on for more than a month now, and the end of the aggression is nowhere in sight. 

While the officials of the two sides continue to meet for face-to-face talks in the pursuit to end the war, the population is either defending the country or fleeing. 

Since the first week of the invasion, the Kyiv government has started to accept cryptocurrency donations, which were plentiful, especially from famous personalities within the tech and crypto space. 

The crypto donations also proved to be a reliable financial market during these uncertain times. The Bitcoin price went up as sanctions poured in and the Russian economy started to collapse. 

Meta History: Museum of War

The NFT collection displaying the terrible facts of the war between the two countries has been announced with a Twitter post by Mykhailo Fedorov, Ukraine’s Minister of Digital Transformation.  

Ukraine’s minister claimed that while Russia uses tanks to destroy Ukraine’s infrastructure, Ukraine relies on revolutionary blockchain tech to help rebuild it.

The Museum of War is a collection that combines non-fungible tokens (NFTs) registered on blockchain with news items. Each item of the collection is a reminder of an important event of the war and uses a unique illustration. 

The NFT launch replaces an earlier plan that would have allowed tokens to be airdropped to anyone who donated cryptocurrency to Ukraine. However, the government decided to not do the airdrop. There is currently no plan to give prior donors an advantage in selling the new NFTs.

Both countries have used cryptocurrency to bypass local currency restrictions and capitalise on the hype around cryptocurrency to solicit donations. Some claim that the Ukrainian government raised $54 million in cryptocurrency through donations.

Ukraine Sells War Snapshots as NFTs

Writing history into the collective memory of the digital age

According to the online museum, these tokens aim to preserve the memories of those events. They are created with the sole scope to share truthful information with the entire world and help continue receiving donations for Ukraine’s support.

The virtual museum platform presents the collection as a chronological record of all events in recent Ukrainian history. The NFTs are factual statements accompanied by personal reflections. Each NFT has a simple formula: each token is an actual news piece from an official source and an illustration from international artists.

At the moment, there are 54 NFTs available, which cover the first three days of the war between Russia and Ukraine. The NFT collection of the war in Ukraine starts with Russia’s announcement to launch a special military operation in Donbas. 

The collection is currently unreleased but can be seen on the project’s official website. The sale is expected to start at the beginning of April 2022. 

The NFT collection is being launched in collaboration with Fair.xyz, a blockchain company that provides the NFT sales platform.

Supporters can also choose to donate Ether (ETH) directly on the page of the project – Museum of War. 

Big Plans for the Web 3.0 Ecosystem: Investment Funds and Metaverse Support 

Big Plans for the Web 3.0 Ecosystem: Investment Funds and Metaverse Support 

by | Mar 23, 2022 | News

Web3 is one of the most used words of 2022. The idea behind the buzzword is to create a decentralised platform that hosts decentralised applications. As the concept gets more supporters, investors are paying attention.

What is Web 3.0?

Web3, or Web 3.0, is a cryptographic term that describes a decentralised internet version that runs on public blockchains such as the Ethereum blockchain, or any other programmable platform. 

Web3 could reduce the power of the largest internet companies, such as Amazon, Google and Microsoft, and give that power back to users. However, the technology needed for this massive internet shift may not be here yet, and it is not as advanced as the hype and the popularity of digital assets. Therefore, Web3 does not pose a threat to tech giants. Yet! 

Some voices argue that Web3 won’t be a truly decentralised Internet. This is especially true as venture capitalists continue to invest in space in order to monetise and control it. Jack Dorsey, the former CEO of Twitter, stated that Web3 on Ethereum will be centralised because of heavy venture capital investment. His repeated comments have led to a dispute between Dorsey and venture capitalists, who have invested billions in the crypto space and Web3 this past year.

Big bucks are poured into Web3

As with everything trending, big investors have taken notice of the upcoming Web3, and many have already decided to invest in it. Does this mean that Dorsey’s prophecies are right?

Nexo, a cryptocurrency lender service, established a venture arm with $150 million for Web 3 projects.

Nexo Ventures will be investing in Web3, decentralised finance (DeFi), non-fungible tokens (NFTs), metaverse, and GameFi. The venture arm will be led by Tatiana Metodieva, Nexo’s head for corporate finance and investments. Nexo Ventures would “explore the feasibility” of allowing Nexo’s users to invest alongside them and thus leverage our capabilities to facilitate wealth maximisation and investor diversification.

Since the appeal of a Web3 ecosystem has sparked the attention of investors, several similar funds have been launched in recent months. In December 2021, Hashed has raised $200 million for a fund dedicated to growing the Web3 ecosystem. Hashed is s South Korean venture firm that started investing in the crypto space in 2016, hitting big on projects like Axie Infinity and The Sandbox.

Griffin Gaming Partners, a gaming-focused venture capital firm, also announced that it would be investing $750 million in Web3.

Gaming has been a hot industry sector, with crypto exchange FTX investing $100 million last year to help fund gaming studios that incorporate the Solana blockchain into their games. Lightspeed Venture Partners and Solana Ventures raised the fund.

Wait, is the metaverse part of Web 3?

Web 3.0 is about who will control the internet in the future, but the metaverse is about how people will interact with the internet in the future.

Most people navigate websites and apps using their smartphones, tablets, or computers. The metaverse will use virtual reality (VR) to access the Internet, and users will be able to move between virtual worlds using digital avatars.

Animoca Brands is a Hong Kong-based game software and has a broad portfolio of blockchain games, traditional games, and other products.

Animoca Brands’ co-founder and chairman, Yat Siu, stated that his company would continue to assist businesses into Web3 in order to accelerate the evolution to an open metaverse.

Siu is long a supporter of the concept that an open metaverse would be better than one that is controlled by large Web2 companies. Siu’s argument centres on the fact that Web3 platforms and tech like NFTs allow users to retain ownership rights over data and content online instead of being controlled and used by large centralised Web2 companies such as Meta.

Siu believed that we are “super early” in terms of building an open metaverse. However, he stressed the importance of speeding the process because of the danger of large centralised firms dominating the virtual sphere.

Yat Siu believes that Web3 is a great way to combat the central metaverse companies. As Web3 develops into a global trade framework, users will be accustomed to having a stake in it.

In the end, this is what Web3 is trying to solve – user ownership and privacy. The web2 era has been all about big corporations owning customers’ data. But that’s about to change. 

Bitcoin Ban Averted: Proof-Of-Work Crypto Ban Is Rejected by the EU

Bitcoin Ban Averted: Proof-Of-Work Crypto Ban Is Rejected by the EU

by | Mar 16, 2022 | Bitcoin, News

On March 14, the European Parliament discussed the effects and carbon footprint of Proof-of-Work cryptocurrencies. The EU Bitcoin ban was not passed, but the energy discussion has not ended.  

​​A rule proposal that would have effectively banned Bitcoin in the European Union (EU) has been struck down.

The European Parliament’s Committee on Economic and Monetary Affairs (ECON) voted to keep the provision out of a draft Markets In Crypto Assets (MiCA) framework. This is the EU’s comprehensive regulatory package that governs digital assets. 

EU’s response to crypto companies: MiCA

The MiCA framework was introduced by the European Commission in September 2020, as the EU executive branch responsible for proposing and enforcing laws. It is part of a larger digital finance strategy to adapt Europe to the digital age. It’s also quite different from other regulatory efforts.

For instance, the U.S. has introduced many bills over the years that directly impact the crypto space. These include tax and securities laws, but different states may have their own regulatory requirements. The country does not have a comprehensive equivalent to the EU’s MiCA. In August, the country’s most comprehensive bill regarding crypto regulation was presented. China had already banned crypto trading and mining in 2021. However, it was still working on its own digital currency, the digital yuan.

MiCA covers cryptocurrencies such as Bitcoin and Ether, as well as stablecoins. The proposed framework does not cover digital currencies issued by central banks (CBDCs), nor crypto assets like security tokens, which might be considered financial instruments such as securities, deposits or treasury bills.

Although the promise of a passportable license to crypto asset service providers sounds appealing for established crypto firms that want to establish in the region, industry participants are concerned about the impact MiCA may have on the EU’s digital asset market.

EU’s Parliament voted on the crypto proposal

This Bitcoin ban proposal was added to the draft last Wednesday. It sought to limit cryptocurrencies powered using an energy-intensive computing process called proof-of-work (PoW). The proposal was met with heavy opposition by crypto advocates around the world. 

After the Bitcoin ban was opposed by the committee, Stefan Berger, member of the EU Parliament, and rapporteur for MiCA, tweeted: “ECON committee approved my #MiCA report. A good day for the crypto sector! The EU Parliament has paved the way for innovation-friendly crypto regulation that can set standards worldwide. The process is not over yet; Steps still lie ahead of us.”

The vote on the provision, commonly known as the Bitcoin ban, was close, and a small majority could defeat it. The proposal required that all cryptocurrencies be subject to the EU’s “minimum environmental sustainability standard with respect to their consensus mechanism.”

The rule suggested a phase-out plan for popular proof-of-work (PoW) cryptocurrencies such as Bitcoin and Ether that would allow them to switch their consensus mechanism to less energy-intensive methods like proof-of-stake (PoS).

While plans are in place to make Ethereum a proof-of-stake (PoS) consensus system this year, it is not clear if the same will be possible for Bitcoin.

The MiCA draft will be subject to a “trilogue” after the vote of the Parliament. This is a formal round between the European Parliament, Commission and Council.

Can renewable energy sources save Bitcoin?

Experts in renewable energy see two possible ways that crypto can be used to address power consumption concerns, first, by increasing demand for renewable energy sources. Second, by using blockchain technology to interact transparently and transparently with power grids in an auditable and measurable manner.

A small majority of members of the monetary committee voted for a compromise calling on the European Commission to propose alternative regulations. This is the EU’s executive arm that proposes new legislation.

“By January 1 2025, the Commission shall present to the European Parliament and to the Council, as appropriate, a legislative proposal to amend Regulation (EU) 2020/852, in accordance with Article 10 of that Regulation, with a view to including in the EU sustainable finance taxonomy any crypto-asset mining activities that contribute substantially to climate change mitigation and adaptation.”

Some politicians and regulators around the globe have criticized proof-of-work for their concerns about energy. EU leaders are worried that renewable energy could be used to sustain cryptocurrencies such as bitcoin, instead of being used for national purposes.

The US President Issues an Executive Order on Crypto

The US President Issues an Executive Order on Crypto

by | Mar 9, 2022 | Cryptocurrency, News

U.S. President Joe Biden instructed federal agencies to coordinate efforts in drafting cryptocurrency regulations through an executive order.

According to a fact sheet accompanying the order, this governmental effort to regulate the crypto industry focuses on consumer protection, financial stability, illicit uses, leadership in the global financial sector, financial inclusion and responsible innovation.

This executive order, which is the first to be solely focused on the growing digital assets sector, directs federal agencies in communicating their work better but does not specify the positions that the administration would like agencies to take.

The order also did not set out any new regulations that cryptocurrency companies must follow.

Senior administration officials spoke neutrally about digital assets, telling reporters that the growing cryptocurrency sector could threaten the U.S. financial system and national security. Criminals could use cryptocurrency to hide funds or avoid sanctions if there is not enough oversight.

The official stated that digital assets could also offer American innovation, competitiveness, and financial inclusion opportunities. “Innovation is key to America’s story, our economy, creating jobs and new opportunities, building new industries and maintaining our global competitive edge.”

The U.S. executive order that focuses on digital assets, has six key points:

  • protecting U.S. interests
  • protecting global financial stability
  • preventing illicit uses
  • promoting “responsible innovation,”
  • financial inclusion
  • U.S. leadership

Around 40 million Americans have reported to be trading or investing in cryptocurrency, which is 16% of the entire U.S. population.

An administration official cited crypto’s volatility as one reason that investors could be hurt. He pointed out that the price of bitcoin at the start of the COVID-19 epidemic was $10,300. The price reached a peak of $69,000 in November 2021, before plummeting again at the beginning of 2022.

The official stated that the President had proposed a whole-of-government holistic approach to understand not only macroeconomic risks but also the microeconomic risk to each individual, investor, and business that interacts with these assets.

The official stated that investor protection will be a key goal. Understanding the technology that underpins digital assets is one part of this effort. Part of this effort will also include understanding the weaknesses and areas that are not serving all consumers in the current financial system.

The official stated that the order recognises that the assessment of potential risks and benefits of digital assets must also include an understanding of how the financial system meets current consumer needs in an equitable, inclusive, and efficient manner.

The “antiquated” payment infrastructure could make it difficult for consumers to access services. This was especially true for cross-border payments, the official stated.

The future of money 

A section of the order directs U.S. Treasury Department officials to prepare a report about “the future money and payment system.”

The effects of cryptocurrencies on economic and financial growth will be observed to the extent that technological innovation may influence that future.

Last November’s President’s Working Group report called for Congress to pass a bill that more clearly defines federal bank regulators’ oversight power over stablecoins. Moreover, the Financial Stability Oversight Council could act in place of legislation.

Yellen mentioned FSOC’s role, saying that the financial stability watchdog would examine any potential risks posed in the cryptocurrency sector and “assess whether appropriate safeguards” are already in place.

Digital dollar

In the executive order, the U.S. will ask agencies to assess how they could issue a CBDC (central bank digital currency). 

This order is tied to the Federal Reserve’s ongoing efforts to study digital currency issuance. In recent months, branches of the central bank published numerous reports evaluating both technological and policy questions before a central bank digital money (CBDC).

According to the administration official, CBDCs are being considered by more than 100 countries. These use cases can include both domestic and international transactions.

The official stated that many of these countries were also working together to establish standards for CBDC design, and cross-border systems.

Bitcoin Prices Go Up as the Russian Economy Sinks

Bitcoin Prices Go Up as the Russian Economy Sinks

by | Mar 1, 2022 | Bitcoin, News

The price of Bitcoin (BTC) surpassed the $40,000 level on intraday charts, as the leading cryptocurrency rose more than 15% in one day, despite the ongoing war between Russia and Ukraine.

The two largest cities in Ukraine, Kyiv and Kharkiv, are under attack from the Russian side. However, the huge economic sanctions imposed on Russia seemed to have brought the largest single-day gain Bitcoin had seen in a year. Most of the crypto markets are green, and Ethereum (ETH), the second-largest cryptocurrency, has risen by more than 12%. 

All banks worldwide have pledged to block SWIFT from Russia. The U.S. Treasury Department has placed a ban on U.S. entities interfacing with Russia’s central banks. Foreigners are prohibited from Moscow’s stock exchange for fear of stock-market sell-offs.

Financial markets and war in Ukraine

Russian President, Vladimir Putin, initiated the conflict in Ukraine. The entire world is watching, and most nations are sending humanitarian aid and military equipment. However, observers fear that the almost 200,000 strong invading force that was defeated by the surprisingly strong Ukraine resistance will resort to more brutal tactics. As sanctions from the United States and Europe began to bite into Russia’s economy, the Russian and Ukrainian delegations held an initial peace talk at the Belarus border during the fifth day of the conflict.

Although nobody had expected Ukraine to fight off the invading forces for so long, with each day that passes, more economic sanctions and escalations are taking place. 

Mykhailo Fedorov, Ukraine’s Vice Prime Minister and Minister for Digital Transformation asked that all major crypto exchanges block Russian addresses during the fifth day of the conflict.

The U.S. and the European Union have removed certain Russian banks from the Society for Worldwide Interbank Financial Telecommunications (SWIFT), a messaging network that supports global financial transactions. This is the system that both Ripple and Stellar are trying to replace with lighting speed networks and significantly lower transaction fees. 

Is cryptocurrency a way to avoid sanctions?

These economic sanctions are without precedent in the modern economy, and some militate for adopting blockchain products to bypass some of these constraints. As investors see the potential for massive investments in decentralised finance (DeFi) after the Russian sanctions, Bitcoin and all other top altcoins are rallying today.

Due to the ban from the SWIFT payment system, Russian banks are now prohibited from interbank transactions with non-Russian entities. It is expected that the Russian banks will try to use crypto as a way of circumventing this sanction and other measures meant to isolate them from the global financial system.

Russian citizens are now unable to use their credit cards outside Russia, and the effects of the harsh sanctions on the Russian central bank had caused the ruble to drop 30% in one day, on February 28, when $1 was around 101 Russian Rubles. In an attempt to stop the price from plummeting even further, the Russian central bank froze the Russian exchange market and ordered Russian businesses to sell 70% of their foreign cash assets. Also, the central bank ordered brokers not to execute sell orders from foreign shareholders.

The DeFi space is still an innovation, but considering the strict Russian financial environment, it could help increase the number of people focusing on it. Military conflicts have always posed a huge threat to economies, and investors often wonder where else they can put their money. This looks like one of those smart bets, and DeFi could be one of the few solutions left to this fast degrading economy. 

Without a doubt, the sanctions imposed on Russia by Western powers are biting hard on the country’s economic system. Russia’s ruble is sinking.

Crypto Prices Declining as Russia Makes Plans to Invade Ukraine

Crypto Prices Declining as Russia Makes Plans to Invade Ukraine

by | Feb 22, 2022 | News

Major cryptocurrencies have declined on Monday, February 21, as Russia publicly recognised two pro-Russian republics in Eastern Ukraine. 

There are no concrete plans for a summit between Putin and U.S. President Joe Biden. However, 150,000 Russian troops are reported to have moved closer to the Ukraine border. 

Investors have become more cautious in recent weeks as they fear rising energy prices, sanctions from the U.S. and its European allies against Russia. This will likely impact a global economy already suffering from inflation and delays in supply chains.

Russia deployed troops in Ukraine

After recognising the two regions as independent on February 21st, Russian President Vladimir Putin directed the deployment of troops in the two eastern Ukraine breakaway areas. This accelerated a crisis that the West fears could lead to a major war.

These moves were condemned by the United States of America and the European Union. They promised new sanctions. However, it was unclear whether the West would view the Russian military action as a start of an invasion. In practice, the area was already controlled both by Russian-backed separatists as well as Moscow.

It is expected to see the U.S. announce new sanctions soon as a response to Russia’s decisions. 

Political tensions cause crypto prices to decrease

Although the price of Bitcoin has been steady throughout the week, some analysts predict a volatile few more weeks.

After a strong February during which we saw the cryptocurrency rebound from six-month lows at 2022’s beginning, BTC settled in the $41,000 to 45,000 range.

However, things changed as the Biden administration announced sanctions against the separatist Ukraine republics following Putin’s speech. The price per barrel of brent crude oil rose to $97, which represents an almost 4% increase.

Bitcoin, the most popular cryptocurrency, dropped to around $36,000 in the following hours. This is a drop of over 5.5% from the previous 24 hours. Ether, which is the second-largest crypto by market capitalization, lost 7% during the same time period. Other cryptos suffered from negative numbers.

The U.S. equity market was closed due to the National Presidents Day holiday. However, major European stock exchanges including the FTSE 100 and the DAX in Frankfurt, as well as the CAC 40 in Paris, finished in the red. Major Asian indexes lost ground Monday as well, including the Japanese Nikkei225, Hong Kong’s Hang Seng, and the Asia Dow.

Market analysts noticed that the sudden deterioration of diplomatic relationships can have a strong effect on financial markets. The cryptocurrency market was already sensible and the investor’s confidence, which was already shallow, has quickly disappeared. 

Some of the biggest losers are Theta Fuel (TFUEL), Gala (GALA), Harmony (ONE), Quant (QNT) and New (NEO), as they all lost over 16% in value in the last 24 hours. 

Other cryptocurrencies that are popular, Cardano and Solana, have fallen by around 12% in the past day. Memecoins such as Dogecoin and Shiba Inu have seen their value drop by 7-10% during this period.

Overall, the crypto market has fallen by 6% in the past day and is now valued at $1.67 trillion.

The chart is mostly in red and shows no signs of recovery.

Stocks extend losses as investors weigh likelihood of Russia invading Ukraine

Most financial markets experience downturns by the prospect of war between Russia, Ukraine and other countries. The increasing political tensions have shaken both the crypto and other commodities market. As investors waited for developments in Russia-Ukraine, worldwide shares keep losing value. 

Shares fell in all Asian markets. Tokyo’s Nikkei225 index fell 1.8% to 26,426, while Hong Kong’s Hang Seng lost 3.29%, to 23,575. The Kospi in Seoul fell 1.69% to 2,695.80. The Shanghai Composite index also fell 1.44%, to 3,440.

S&P 500 e-mini futures slid 1.81%. Dow Jones industrial average futures e-mini fell 1.37%, while Nasdaq 100 futures e-mini dropped 2.65%. The stock market was closed in the US due to the President’s Day holiday.