Here’s What the Cryptoverse Has to Say About Russian Invasion of Ukraine

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Ruholamin Haqshanas

Author

Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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October 23, 2023 09:13 EDT

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Many in the cryptoverse have taken it to social platforms to condemn the Russian invasion of Ukraine — with people highlighting that this will put the lives of millions of civilians at stake, adding that it is essential now to “have some perspective” and not only worry about portfolios. 

Echoing this point of view, Sam Bankman-Fried, founder and CEO of major crypto exchange FTX, warned that there might be war, which is “really bad for the world.” He urged everyone to “go outside and do something nice for someone.”

However, he seemed to be baffled by bitcoin (BTC)‘s price performance. He pointed out the fact that the Ukrainian hryvnia has hit its lowest level against the US dollar, implying that people living there “might be looking to alternatives” such as bitcoin. And it seems like some of them are looking at BTC. 

On the other hand, Bankman-Fried argued that BTC might be going down as people need cash. “Basically, selling BTC–along with stocks, etc.–to pay for war,” he said.

5) On the other hand, this is likely destabilizing for Eastern European currencies.

And, more generally, for Eastern European financial systems.

Which means they might be looking to alternatives.

If you were in Ukraine right now, where would you trust your money? pic.twitter.com/eRiaPeoiDr

— SBF (@SBF_FTX) February 24, 2022

Mark Jeffrey, an American author and crypto investor, argued that BTC might be going down because people are turning to cash and view it as an “exit.” He added that people will again turn to gold and BTC when they “start thinking about how to preserve wealth in mad inflation.”

Meanwhile, Polylunar, a pseudonymous Bitcoin enthusiast, has called this a turning point in worldwide geopolitics. They said that any western sanctions, including banning Russia from the SWIFT financial system, would not be able to deter Russia.

Polylunar further speculated that Russia will not stop in Ukraine. 

“To secure their homeland they’ll have to move further west into the Baltic countries, by whichever means possible – not today, but also not too far in the future,” the pseudonymous crypto user opined.

According to Polylunar, this situation is not about Russia and Ukraine only. It may further involve China (and its relation to Taiwan), a number of European countries, and the US. 

Furthermore, this could have far-reaching consequences for both the USD and BTC. They claimed that the US dollar may see its end as the world reserve currency, while bitcoin, if Russia should choose to adopt it, could become an alternative.

However, Tone Vays, a derivatives trader and Bitcoin analyst, doesn’t see “WW3 happening. He opined that Russia will likely “take a chunk of East Ukraine” just as it did with Crimea back in 2014, and will “then negotiate to leave the rest alone if NATO is scaled back.”

I do not believe Putin wants ALL of Ukraine, as he would be responsible for a large population that hates him (the east would be more ok with it) also it puts NATO back at his new border.
* BUT he has to show strength & willingness to take it all if he's to be taken seriously.

— Tone Vays (@ToneVays) February 24, 2022

Julian Hosp, CEO and Co-Founder of decentralized finance (DeFi) protocol CakeDeFi, shared what he thought should be the West’s reaction. He argued for the ban of SWIFT, illegalization of Russian-related securities, an embargo on Russian oil and gas, halt of all non-food exports to Russia, and a number of other economic sanctions.

6. Instant Support of NATO border to Russia in Europe with a couple hundred thousand troops.
7. No more negotiating. You played your card, now I play mine.

— Dr. Julian Hosp (@julianhosp) February 24, 2022

In the midst of all this, another strong argument has revolved around the impact of this attack on global energy prices. According to a 2021 report by BP, a British multinational oil and gas company, Russia is the third-largest oil producer, after the US and Saudi Arabia. Therefore, sanctions on Russia could send energy prices to new levels, and exacerbate inflation.

Pseudonymous crypto user AusMMT noted that stagflation — economic stagnation accompanied by inflation — may happen if renewables are not rolled out faster. 

Now I am prepared to say stagflation will happen unless we roll out renewables more quickly. Why? The Russia-Ukraine conflict and resources within the Ukraine plus sanctions on Russia. A lot could be lost. pic.twitter.com/ZsU4ZoYiLB

— Darren Quinn | Modern Money Educator & Analyst (@AusMMT) February 24, 2022

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Other reactions:

Sam who the fuck cares about #Bitcoin price movements! There is unravelling of a war in the middle of Europe with many innocent civilians to die as Ukrainians will fight to the end and shall prevail 🇺🇦✊✊✊

— George Kikvadze 🇬🇪🇺🇦🇪🇺 (@BitfuryGeorge) February 24, 2022

I've been there and I can tell you that Kiev is exactly like Paris. Ukraine is a democratic, beautiful country… full of culture, natural beauty with good lifestyle and amazing people. Imagine how prepare we would be if Paris or London tomorrow gets attacked.

— Julien Bouteloup (@bneiluj) February 24, 2022

How manipulation-resistant are our social networks?

How verifiable are our news?

How stable and sound are our currencies?

How well can we make decisions and take actions as groups?

How well will any of our systems work if basic internet access is interrupted? 6/

— Juan Benet (@juanbenet) February 24, 2022

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Learn more:
– With War Starting and Markets Dropping, Questions Multiply About Central Banks’ Policies
– Ukraine Outranks Russia in Crypto Adoption Index as War Starts

– Regional Interest in Bitcoin Sees an Uptick as Russia Invades Ukraine
– Russia’s Invasion of Ukraine: Bitcoin Set to Play a Role on Both Sides