Cryptocurrencies and blockchain technology have proven to be the lifeline for saving both the Ukrainian and Russian economies. Donations of digital currencies help fund the Ukrainian army, strengthen relief efforts, and rebuild the country.
Cryptocurrency donations exceeded $ 100 million last month, according to Tradingplatforms.com. But crypto donations aren’t the only way blockchain technology can help people affected by the war.
On Friday, the US and Austrian startup Morpher launched a platform that allows investors to bet on Russian stocks without benefiting the Russian government, businesses, or oligarchs. All the benefits of Morpher Arena will also be donated to organizations that support Ukrainian refugees.
The company’s team has both Ukrainians and Russians, but the founder of Morpher says he wants to raise money to help Ukrainians. “What was a free and open market on the Moscow Stock Exchange suddenly became a very restricted and licensed market, which made it inaccessible to many and that was the purpose of the Morpher protocol.
He said it works via peer-to-peer cryptocurrency smart contracts on the Polygon blockchain. Users deposit USD Coin, a digital stable coin pegged to dollars, on the platform, and in return deposit a portion of the entire staking pool themselves.
Then people around the world can bet on the price development of stocks of companies such as Russia’s gas giant Gazprom. Gazprom or the company in question does not make a profit because the company’s stock is never traded.
“Only people are interested in or have an opinion on what gas prices will do next. You bet on everyone else in a zero-sum game and ultimately make better predictions. The person who does it wins, “Fröhler said. “This is really democratic and so egalitarian, as anyone with access to a smart contract platform can use it.”
The company also has many Russians who lose savings due to the recent economic system. Sanctions imposed on the country say they are raising awareness of their suffering. “My main argument is that you own only what you hold on the blockchain because it can’t be robbed of you.
Other assets you own or you can take what you own from you, “Froehler said. “Gold can be confiscated and stocks can be confiscated. Even the Central Bank of Russia found that it didn’t own half because half of its foreign exchange reserves were simply acquired. . “
It should be noted that cryptography is not risk-free and prices can fluctuate very much. On Friday, Bitcoin fell 11%, Ether plunged 9%, followed by other altcoins in the red.
Hackers have also stolen large amounts of money from the blockchain network. However, blockchain technology has the potential to help people in conflict areas who may not have access to the market.