NFTs to aid Ukraine forces?

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non-fungible tokens

 

Some close to Ukraine’s government are suggesting that NFTs are going to provide ballast for that country’s troops as the Russian invasion continues.

 

Andrew Griffin for Independent quotes Ukraine vice Prime Minister Mykhailo Fedorov as retracting plans for a crypto airdrop in which the government would have given people free cryptocurrency as a means of promotion.

“The ‘airdrop’ had prompted intrigue and confusion when it was announced,” Griffin writes. “(Federov) has since announced that (the government) would cancel the airdrop but continue to look at ways for people to raise money for Ukraine through the blockchain.”

Reportedly, the government has suggested it will mint NFTs with which buyers can support the Ukrainian military in their effort to fend off a foreign invader.

 

“Likewise, Mr Fedorov gave no information about what form the ‘NFTs to support Ukrainian Armed Forces’ might take,” Griffin adds. Leaving that aside, what is a crypto airdrop, anyway?

 

To the newcomer, it might be a bit confusing, because the terminology conflates the semantics of a military operation with new ways to promote cryptocurrency.

 

“Small amounts of the new virtual currency are sent to the wallets of active members of the blockchain community for free or in return for a small service, such as retweeting a post sent by the company issuing the currency,” writes Jake Frankenfield at Investopedia, referring to the typical airdrop as a type of ‘marketing stunt.’ “The airdrop is a promotional activity typically performed by blockchain-based startups to help bootstrap a virtual currency project. Its aim is to spread awareness about the cryptocurrency project and to get more people trading in it when it lists on an exchange as an initial coin offering (ICO). Airdrops are generally promoted on the company’s website.”

 

Frankenfield notes that this digital money is usually denominated in Bitcoin or Ethereum.

 

Past examples of crypto airdrops include the delivery of eBitcoin, an event scarcely covered publicly on the Internet, and OpenDao’s giveaway of SOS tokens.

 

Look for more of this kind of innovation by national governments as they scramble to get involved in a very new sector of the global economy.

 

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