Bitcoin, Cryptocurrency And Blockchain News

Controversial Venezuelan Pre-sale for Petro Goes Ahead


Despite intense scrutiny, Petro’s pre-sale has started. Venezuelan President Nicolas Maduro has announced that, out of the 100 million tokens that will make up the total Petro reserve, 82.4 million will be immediately available. The PTR token can be bought once an investor has got a Petro wallet. It looks as if one token will be worth around $60 (US Dollars).

“The Petro is born and we are going to have a total success for the welfare of Venezuela” – Nicolas Maduro

The ERC-20 token will be backed by Venezuelan oil reserves, totalling around $6 billion. Investments will be accepted in fiat currencies, but not the Bolivar, which is suffering from hyperinflation. But many remain unconvinced, including most of Maduro’s own government, who have declared the ICO illegal, and the United States of America. The US are concerned that the sale of Petro is being carried out in order to raise funds that will circumvent financial sanctions that have been imposed on the controversial state. Others have labelled the ICO a pre-sale of oil, which will cause issues in the near future. This is primarily because some of the oil that is being used as backing for the ICO is yet to be mined, and does not belong entirely to the Venezuelan government in the first place.

The other consideration is that Maduro has served his time as President, with a new incumbent scheduled to be elected in April. The government have declared that they will outlaw Petro on this date, which will no doubt leave investors nervous.

Is there any money to be made from the Petro? Is it a scam? Let us know your thoughts.