The International Monetary Fund (IMF) recently published a report asserting that the crypto industry crash will not impact global financial stability. IMF referred to recent black swan events such as the Terra-Luna collapse along with liquidity issues across VCs and lending platforms in the industry.
The report stated that “spillovers to the broader financial system have been limited so far”. However, it highlighted that there has been a “dramatic sell-off that has led to large losses” for crypto investors.
The IMF report pointed out that there are larger elements at play when it comes to financial market instability including the Ukraine-Russia crisis along with COVID-19 causing the issues like high inflation and consecutive recessions.
Additionally, it emphasized that the crypto industry’s collapse is just a drop in the ocean, given it is isolated from conventional banks, hence it doesn’t seem to be a concern. Nevertheless, while the report states that crypto collapse cannot impact conventional markets as much as something like the Ukraine event, people are not unaware of crypto’s efficient use case in philanthropy.
Crypto Saves The Day Amid Humanitarian Crisis
Earlier this year, during the Ukraine-Russia crisis, cryptocurrencies and NFTs were heavily utilized by the common man to caveat the humanitarian crisis.
From the leading crypto exchange FTX CEO, Sam Bankman-Fried (SBF) tweeting about donating $25 to all their Ukrainian users to the premium NFT collectors club — Bored Ape Yacht Club (BAYC) contributing $1 million in ETH, the crypto industry came together to provide financial relief during the crisis. There were top four crypto donation campaigns that gained attention during the crisis.
Crypto and Ukraine Government
The Ukrainian government shared the BTC, ETH, and TRC-20 addresses controlled by them, seeking crypto funds. Alongside receiving funds in BTC and ETH, several other tokens on Ethereum were donated, including USDT, USDC, StarLink, Shiba Inu, etc. Subsequently, the TRC-20 address only collected funds in the network’s native token — TRX, stablecoin USDC, and others.
UkraineDAO And Ukrainian NGO
A majority of the ETH donations were collected via the fundraising of UkraineDAO, which was mainly supported by Ethereum co-founder – Vitalik Buterin. Following this, one of the first crypto donation campaigns in Ukraine was by the NGO ‘Come Back Alive’ which collected most of the funds in BTC.
Leading crypto exchange platform, Binance also assisted Ukraine during the crisis by donating $10 million USD to “major Intergovernmental Organizations and local NGOs on the ground”. Additionally, the exchange platform launched its ‘Ukraine Emergency Relief Fund’ through which it appealed to the crypto community to donate via BTC.