The Bored Ape Yatch Club has decided to follow the generosity of its community by sending $1 million in cryptocurrencies to Ukraine. This donation is symbolic in the sense that it represents the equivalent of all that would have been sent by investors with a Bored Ape.
Bored Ape Yatch Club doubles down to support Ukraine
In the multitude of donations in different cryptocurrencies that have poured in for Ukraine on the various addresses, a total of $1 million would have been sent by holders of a Bored Ape non-fungible token (NFT).
The Bored Ape Yatch Club has therefore doubled the stake of its community by also sending a million dollars in solidarity with Ukraine.
According to the transaction hash, nearly 389 ETH were sent to the donation address. According to Merkle Science, this brings the total crypto donations to nearly $89 million.
Donations on the Ethereum blockchain (ETH) alone account for 40 percent of that total, followed by 29 percent from Bitcoin (BTC). The Ukrainian government’s Ethereum address has also received many NFT donations, including Crypto Punk number 5364 last week.
The difficulty of selling NFTs
The major drawback of NFT donations is the liquidity problem. Indeed, since these are unique by definition, they cannot be sold in a few seconds on an order book like a cryptocurrency would be.
This means that even if the theoretical value of one of these assets is high, there is no guarantee that the Ukrainian government will be able to sell it quickly and at a good price. This is the issue that was raised by Alex Bornyakov, the Deputy Minister of Digital Transformation following the donation of Crypto Punk.
With this in mind, the Bored Ape Yatch Club preferred to donate cash, so that it would be instantly available to support the war effort.
In any case, whether in the form of NFTs or cryptocurrencies, the last ten days have seen a paradigm shift in the way donations are made internationally. This quick response has actually allowed Ukraine to start using these cryptocurrencies to cover various war-related expenses.
