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Petro Unconstitutional? Venezuela’s National Assembly Calls It A Fraud

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Petro
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After much hype surrounding Venezuela’s recent breakthrough in the crypto world, namely Petro, it seems that the project is under criticism again. In a shocking twist, Venezuela’s national assembly has deemed Petro to be unconstitutional. It has criticized the country’s oil-backed currency through a public statement, labeling it as a “fraud” and warning investors to stay away from it.

Much of the criticism stems from the unconventional nature of Petro’s token sale in general.  According to the Venezuelan President, the project had raised over $735 million, which has raised a lot of eyebrows in the administration. Lawmakers have deemed it a result of the ongoing political crisis in the South American countries.

Reasons for Doubting Petro

  • One of the foremost reasons of doubting the credibility of Petro is when one takes the buyer’s manual into consideration. It indicates that the PTR token will work on the chain of NEM blocks during the pre-sale stage. Investors remain wary of NEM, partly due to the 2015 incident involving a larceny of $500 Million. Experts believe that Petro will be built on top of the NEM network with a possibility of a swap with the ERC20 token at a later period. There is a possibility that Venezuela could be using a NEM-derived code to develop a new ledger. No officials from NEM have any comment on this matter whatsoever.
  • A Majority of cryptoanalysts, economists and even political opponents, including the Congress controlled by the opposition have been vocal against the project. According to some of them, it is nothing but a vehicle of corruption. Some senior lawmakers in the U.S. have also indicated that it is nothing but a ploy by the country to navigate past the economic sanctions imposed on the South American nation. Overall the crypto community’s response was mixed. Some journalists like Max Keiser have expressed his support of the project and its effect on the country’s hyperinflation.
  • The resentment regarding Petro had manifested after the recent actions of forcing businesses and retirement accounts alike to accept and adapt it. Rafael Guzman, who has been a strongly voiced critic of Petro since its inception, has claimed that the project is merely a way for the government to embezzle funds. According to him, the project is not the solution for the country’s dire economic predicament and is a sure sign of corruption on the part of the government.
  • Francisco Sucre, another well-known critic of the project has highlighted one particular point. National Assets cannot be used as collateral, meaning Petro cannot be backed by Venezuela’s oil reserves. He also added that due to the current state of politics in the country, the situation has become even more complicated.
  • According to Prosperi , “The PTR began with a war of lies when Maduro said it was the first virtual currency, mentioned at the time of highlighting the monetary reconversion and the entry into force of the Bolívar Fuerte, and they said that from there the strength of our currency would emerge, On the contrary, it has lost value daily, and the Sucre was presented as a currency that would exceed the dollar.”

Final Thoughts

In spite of the harsh criticism it has been receiving, Petro also has its own share of fans and backers. State-owned companies and the country’s airlines were ordered by Venezuelan Leader Nicolas Maduro to accept this cryptocurrency. If implemented right, Venezuela can experience serious economic improvement and stability. According to many, Petro will fix the problem with the Bolivar, Venezuela’s currency which has steadily declined in value.

Petros’ new mechanism could attract international investors which will result in lifting up the country’s current credibility index. The Chinese Credit Rating giant Dagong has claimed that Petro will help the global currency system in the long run.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of David Hernandez via Flickr

Altcoins

SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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Bitcoin crash
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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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coins
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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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