Mykhailo Fedorov, the vice prime minister of Ukraine, announced on Thursday that Ukraine was canceling its plans for an airdrop, a project that would have provided its crypto donors free tokens as an incentive for more donations.
The airdrop had prompted an influx of microdonations, with 95% of donors contributing 0.001 ether or 0.01 ether with the expectation of getting a free token back. Some called the cancellation a rug pull, implying that Ukraine had somehow tricked donors with the promise of a token.
The cancellation followed an apparent attempt to spoof the promised token. An unknown entity minted a Peaceful World token with the symbol WORLD, which some users mistook as the intended Ukrainian airdrop. The official Ukraine crypto donation wallet appeared to hold almost 7 billion WORLD tokens at one point. The WORLD tokens have since been marked by Etherscan as coming from a problem address, indicating possible fraud.
Ukraine would have been the first nation to conduct an airdrop for crypto donors. El Salvador made a similar move last year when it airdropped $30 worth of bitcoin to every adult citizen who downloaded its government bitcoin wallet.