The Role of Cryptocurrency Financing of Infrastructure Projects in the Post-war Reconstruction of Ukraine
Year: 2025
Type: article
Abstract: The relevance of the research is that Ukraine has suffered devastating losses from military aggression; lives, destinies, enterprises, cities, economic and logistical connections have now been destroyed. The reconstruction of the country depends on timely financial support from international partners. Investments in reconstruction are about security and stability for Europe. The process of mobilizing resources for reconstruction projects has begun. As the experience of countries around the world shows, reconstruction is a unique practice for each country. In times of technological innovation, the use of digital tools should contribute to the implementation of best investment management practices. The purpose of the article is to determine the possibility, based on the existing regulatory framework, of using alternative sources of financing for infrastructure reconstruction projects. The cryptocurrency market offers a variety of social and financial projects. In modern conditions, cryptocurrency is an integral part of the financial system, which should be considered as a system of investment projects aimed at achieving an economic effect. The article analyzes the sources of formation of a cryptocurrency investment fund, which consists of Initial coin offering (ICO), Security Token Offering (STO), Initial Exchange Offering (IEO). ICO, STO, IEO are forms of blockchain crowdfunding. The structure of the initial coin offering (ICO) is considered, consisting of a detailed development of a marketing strategy. Like any investment project, a cryptocurrency project has stages of development and integrates with the real economic environment. It has been proven that STO is considered a security token, where capital is raised in exchange for the value of a security, and is backed by assets. Unlike other sources of cryptocurrency funding, IEO receives a blockchain platform from a crypto exchange to issue tokens and raise funds from investors. IEO provides protection for investors as it is subject to thorough vetting on the crypto exchange. A comparative analysis of the features of each crowdfunding method on the constantly evolving blockchain was conducted. It should be noted that ICO, STO, IEO offer different levels of security and mechanisms for attracting investors. Cryptocurrency, as one of the innovative methods of financing infrastructure projects for the reconstruction of the country, requires the development of a mechanism for its implementation into the public administration system.
Source: Business Navigator
Authors: Main Operations Directorate of the State Bureau of Investigation, Oleksandr Bondarenko, Iryna Zaporozhets
Language: English
Subfield: Information Systems
Field: Computer Science
Domain: Physical Sciences
Open Access status: bronze
OpenAlex ID: W4409509628