[2018-09-02]Venezuela’s Cryptocurrency Petro Has No Users, No Investors and No O

[Jating]

Venezuela’s Cryptocurrency Petro Has No Users, No Investors and No Oil to Back It Up

The petro has stirred up a lot of debate among the cryptocurrency community. Some believe it is a successful example of using the technology to create resource-backed assets and bypassing financial sanctions. Others see it as a scam by a corrupt government that already inflicted economic calamities such as hyperinflation against its own citizens. A new report is unlikely to end this debate but it does help shed light on what is really going on, as reported by Reuters.

https://news.bitcoin.com/reuters-venezuelas-petro-has-no-users-no-investors-and-no-oil-to-back-it-up/

Is anyone surprise by this news? I really thought that the the only investors they can get is the Russians, or this is just Maduro's fantasy coin? with no one to really back it up but failed promises to help uplift their economy?

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[cryptofonia]

Russia's involvement is not provable.

[Jating]

Russia's involvement is not provable.

Russia's Putin have gone publicly that he supported Maduro even after all global nations rejected Maduro re-election. Russia even have a debt re-structuring scheme to help Venezuela because of the US led sanctions. So I'm assuming and most probable that they will also back him up with his Petro scheme, however, it looks like its not the case. And in Feb this year alone, Maduro claims he raised more than $700 million in one day.  . So where is that money?

[gentlemand]

It's been a week and a half or so since its supposed launch yet no one can point to any blockchain activity anywhere in the solar system. I think it's safe to say that it was all empty bilge for as yet unknown ends.

No great shock considering the calibre of the government and economy involved.

[Taki]

Russia's involvement is not provable.

Russia's Putin have gone publicly that he supported Maduro even after all global nations rejected Maduro re-election. Russia even have a debt re-structuring scheme to help Venezuela because of the US led sanctions. So I'm assuming and most probable that they will also back him up with his Petro scheme, however, it looks like its not the case. And in Feb this year alone, Maduro claims he raised more than $700 million in one day.  . So where is that money?

I'm from Rissia and I watch news. I can say that our politic and the mass media is very tricky. One day they wash Maudura in shit by calling him as fool and ect. another day they call him a friend and give all possible support to him. The same story with Trump and Erdagan, Merkel and ex and current French presidents.
Venezuelan Petro doesn't succeed its obvious. Maybe Putin use this as a test drive for Russian national crypto.

[Kemarit]

@Taki - thank you for confirming my doubts about Russia's intention. I've been saying that they won't support crypto because they keep on changing their tone and contradicting themselves. And as far as Petro, its just an illusion that he wanted to create in his country and globally. But I'm sure that nations around the world are not buying his shenanigans because its just a really facade, no substance at all.

[snipie]

The Venezuelan government could get some profits if it launched the petro in some exchanges where there is no US influence like yobit maybe. Until now their project is getting less attention especially with the devaluation of its local currency and the gov difficulties...

[gentlemand]

The Venezuelan government could get some profits if it launched the petro in some exchanges where there is no US influence like yobit maybe. Until now their project is getting less attention especially with the devaluation of its local currency and the gov difficulties...

Do you think any government wants any currency with a price set by anyone other than themselves?

And listing your national salvation on bleedin' Yobit is not the type of thing that'll get the IMF nodding their heads in approval.

[snipie]

Do you think any government wants any currency with a price set by anyone other than themselves?

And listing your national salvation on bleedin' Yobit is not the type of thing that'll get the IMF nodding their heads in approval.

For sure NO. They will try to get as much control as possible on the price. But do you think people will trade petro in an exchange controlled by the Venezuelan government? apart from some gov loyalists, i do not think so

[gentlemand]

For sure NO. They will try to get as much control as possible on the price. But do you think people will trade petro in an exchange controlled by the Venezuelan government? apart from some gov loyalists, i do not think so

I can't see any existing exchange wanting anything to do with it. The Venezuelan government would freeze or blacklist the wallets of anywhere they didn't approve of. That's one of the reasons why a government crypto is such an appalling idea.

If it's a private chain on NEM then they'll have full control over transactions.

This is all of course conditional on whether it actually exists. So far I haven't seen anything to point to it being anything other than blag.

[cryptofonia]

Have we any independent proof of such information?

[gentlemand]

Have we any independent proof of such information?

Proof of it not existing? How would you obtain that?

There is no proof that it exists as far as I can tell beyond a white paper and wallets you can download. No blockchain activity, no sign of this presale and who the hell would've put any money into such a potential black hole.

[aso118]

Why would anybody trust a currency issued by the Venezuela government, crypto or other wise? The fact that this is supposed to be backed by oil assets doesn’t help  - who is going to enforce this security? This experiment was destined to fail from the very start.

[bhadz]

Creating petro is just a way to survive and fight the high inflation in Venezuela. I remember that its been offerred to another country for the oil trade but they are too smart not to accept that worthless coin. But the plan failed to be the savior of their economy and did no impact for the adoption of this coin, well nice try.

[SoiledDove]

After Venezuela's recent hyper-inflation episode and the fact that Bitcoin actually saved the day for some Venezuelan citizens who were also Bitcoiners, this is a sort of non-news. Perhaps it's natural that the Venezuelan government would want to get in on the cryptocurrency act. I think that time will tell whether this cryptocurrency will take off. But my gut tells me that it won't. Venezuelan money doesn't have much allure, it seems.

[darkangel11]

Creating petro is just a way to survive and fight the high inflation in Venezuela. I remember that its been offerred to another country for the oil trade but they are too smart not to accept that worthless coin. But the plan failed to be the savior of their economy and did no impact for the adoption of this coin, well nice try.

It's a stupid way. He's trying to crowdfund the country. "Hey guys, I've got no money, but I got Oil. Give me some of your money and when I get this country rolling I'll sell oil and pay you back" Who is going to fall for this? Judging by the popularity of the Petro - nobody.
You can't survive if you're looking for such idiotic ways to save the country. It's like saying "i got no idea what to do so maybe cryptocurrency will work"

[acheampong64]

hmm..well in that case then I think he needs to review his coin very well if he's indeed ready to implement that initiative. Starting anything in crypto is very difficult to survive and so if his initiative is lacking any backing in its early stages, then he'll need to redefine his initiative. Moreover, crypto is getting uncertain regulations across various jurisdictions and so it'll be difficult even for international and worldwide support/backing.

[bhadz]

Creating petro is just a way to survive and fight the high inflation in Venezuela. I remember that its been offerred to another country for the oil trade but they are too smart not to accept that worthless coin. But the plan failed to be the savior of their economy and did no impact for the adoption of this coin, well nice try.

It's a stupid way. He's trying to crowdfund the country. "Hey guys, I've got no money, but I got Oil. Give me some of your money and when I get this country rolling I'll sell oil and pay you back" Who is going to fall for this? Judging by the popularity of the Petro - nobody.
You can't survive if you're looking for such idiotic ways to save the country. It's like saying "i got no idea what to do so maybe cryptocurrency will work"

Just like what you said, that's how he came up with that idea of thinking that people will buy on his idea. It's an indication that financial and economic crisis on Venezuela hit that high and its unlikely to end very soon. He probably thought that the world will support this idea because of the emerging of cryptocurrencies in the world but he ended badly.

[Jating]

hmm..well in that case then I think he needs to review his coin very well if he's indeed ready to implement that initiative. Starting anything in crypto is very difficult to survive and so if his initiative is lacking any backing in its early stages, then he'll need to redefine his initiative. Moreover, crypto is getting uncertain regulations across various jurisdictions and so it'll be difficult even for international and worldwide support/backing.

I don't think that there's any initiative on their part. What they didn't know is that going to crypto is not the solution for their internal problems. The project itself is doom to fail at the very beginning, as most of the members says here.

If his intentions is to go save his country through crypto then he really needs to go out there. Sadly, no nation will likely to back up him up because his idea is really unbelievable. You just have to feel sorry for Venezuela right now

And to @snipie - are you really serious? listing the coins in Yobit, shitty exchanges with more shitty coins like Petro? I couldn't imagine whats going to happen.

[Voknap]

In my opinion the story with Peter was a populist from the outset. This was a good attempt to throw dust into the eyes, declaring itself a modern country that is trying to build a new economy. Thus drawing the attention of other countries, and for what time to silence the people. The firecracker was exhausted, and was originally doomed. Russia would never participate in such a thing.