Russia launches "special military operation," Ukrainian crypto circle: USDT premium 4%, money can't buy cryptocurrency

Ukraine-Russia border officially at war, Putin orders "special military operation" in eastern Ukraine. According to foreign media reports, before dawn on the 24th local time, explosions and gunfire were heard in the Ukrainian capital Kyiv, the southeastern Black Sea port city of Odesa, the southern border city of Karkiv, and the major eastern frontline city of Kramatorsk. Sirens of police and ambulances were heard throughout Kyiv. Ukrainian authorities urged Kyiv residents to stay in shelters to avoid further missile attacks.

Less than 10 of Ukraine's top 100 billionaires remain in the country due to corruption allegations, with many wealthy individuals using cryptocurrencies as a safe haven to protect their assets. However, they are constrained by the limited supply of the stablecoin USDT, which is pegged to the US dollar.

"Locals are using cryptocurrencies as a hedge by converting money to USDT first and then exchanging it for Bitcoin or Ethereum," said Michael Chobanian, founder of the Ukrainian cryptocurrency exchange Kuna, in a recent interview with CoinDesk. "The supply of USDT in the local market is limited, causing buyers to be unable to purchase even at a 4% premium."

The situation of high demand and low supply is exacerbated by the local currency depreciating by 6% in the past week due to geopolitical risks.

Speaking about Ukraine, Chobanian mentioned, "You can't do anything with cash right now... We don't trust the government and the banking system, and we cannot trust the Ukrainian currency." He even believes that in the worst-case scenario, the internet and the entire banking system could collapse, making cryptocurrencies a safe harbor.

"Most people have no choice other than cryptocurrencies. Those who are already in this field are safe, and others are doing their best to get involved in the crypto space, even though it's very difficult. What I'm saying is that millions of dollars are trying to flow into cryptocurrencies, and we can't find people willing to sell," he added.

Regarding the future of cryptocurrencies in the current situation, Chobanian expressed concerns about Ukraine's lack of foreign investment and bleak economic prospects. However, he sees opportunities for the establishment of new systems like blockchain companies in the country, as "no one is willing to help integrate the Ukrainian banking system with cryptocurrencies on the brink of war, which is also Kuna's biggest problem — the exchange between the Ukrainian currency and cryptocurrencies."

Kuna has around 400,000 active users, with 90% of them coming from Ukraine.

Chobanian believes that many wealthy individuals, businessmen, and people in the crypto community have already left Ukraine, but many choose to send their families abroad while staying behind to protect their homeland. "This is what we have to do now," Chobanian said.

This article is authorized to be reproduced from Horizon News Network.