Market Analysis Report (03 Mar 2022)

The Ukrainian government has teased cryptocurrency donors with news of an incoming airdrop, leading to an influx of microdonations on the Ethereum blockchain from users looking to participate in the distribution.

The country’s official Twitter account has “confirmed” it’s moving forward with an airdrop, with a snapshot being taken today, March 3, at 6 pm Kyiv time (UTC +2).

Ukraine’s tweet led to thousands of donations ranging from 0.0001 ETH to 0.01 ETH (between $0.30 and $30) to its official Ethereum wallet. The country has so far raked in $40 million in cryptocurrency donations after accepting the nascent asset class on February 26.

The number of unique wallets that donated to Ukraine exploded shortly after it announced an airdrop was “confirmed,” suggesting users are trying to game the airdrop via a Sybil attack on the country’s Ethereum wallet. Such an attack involves making small donations from multiple wallets in a bid to get a larger share of the airdrop.

What Ukraine will be airdropping is still unclear. Ethereum blockchain data shows that 7 billion Peaceful World (WORLD) tokens were minted on March 2 at 10:15pm UTC and sent to Ukraine’s official cryptocurrency donation wallet address, although whether they’ll be airdropped by Ukraine or were airdropped to Ukraine is unclear.

Ukraine’s wallet has since sent nearly 1 million of these tokens to a wallet that used them to seed a liquidity pool on decentralized exchange Uniswap. The country’s official wallet has sent 1.03 Peaceful World tokens to the 30 wallet addresses that first sent cryptocurrency funds to its official wallet.