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Venezuela Says Its Cryptocurrency Raised $735 Million -- But It's a Farce (arstechnica.com)
Earlier this week, Venezuelan President Nicolas Maduro claimed that a new state-sponsored cryptocurrency called the petro raised $735 million on the first day of its sale. ArsTechnica dives deep on the matter to suggest that it's all a farce. From the report: The government hasn't provided any way to independently verify that $735 million figure. And there's reason to doubt almost everything the Venezuelan government has said about the project. Moreover, there's little reason to believe that the petro will maintain its value over time. The Venezuelan government has portrayed petro tokens as backed by Venezuela's vast oil reserves, but they're not. The government is merely promising to accept tax payments in petros at a government-determined exchange rate linked to oil prices. Given the Venezuelan government's history of manipulating exchange rates, experts say investors should be wary of this arrangement. Moreover, the petro scheme has been opposed by opposition legislators in Venezuela's opposition-controlled legislature. They say that the Maduro government is essentially issuing oil-backed debt, and legally that can't be done without approval from the legislature. If Maduro falls from power in the future, his successor might refuse to honor petro redemptions.
1. Announce new cryptocurrency
2. Get "investors"
3. ???
4. Profit!
5. Flee country
I should have read your yesterday comment. I bought 734,999,995$ worth of petros, flew to Venezuela and now I am here to collect my oil :(
What a bummer!
Everything I write is lies, read between the lines.
government.
The summary says there is reason to doubt what the Venezuelan government has said about the 'petro". Well, of course there is. There is reason to doubt anything said by the Venezuelan government.
The truth is that all men having power ought to be mistrusted. James Madison
It is now required that somebody start selling a cryptocurrency called the vuvuzela in order to catch on with brand confusion. If you buy 1 $vvz, that prevents one of the people we will employ as vuvuzela blowers from visiting you at your house. The more $vvz we sell, the more employment as vuvuzela blowers, so this currency actually promotes employment. Obviously we have a built in market cap of ~7.9 billion, with some room for growth.
the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff
There is reason to doubt anything said by ANY government.
Fixed that for you....
"I do not agree with what you say, but I will defend to the death your right to say it"
Doesn't that really apply to pretty much any crypto currency though?
Comment removed based on user account deletion
Sure, I believe them--but there was an error in transcription.
It wasn't actually 735M USD, but 735M Venezuelan.
The dictator tried to buy lunch with it, but had to settle for a small soda . . . :)
hawk