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

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

• Ukraine received $1.1 million in ether (ETH), $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 who 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 a non-fungible token (NFT) of a captured Russian tank.

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