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

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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

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Reasons Why 2019 May Be A Great Year For Crypto

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The new year was always considered to be a time of new beginnings, where people can reflect on the past and learn from their mistakes in order to be better in the future. The same is true for the world of crypto, and investors around the world are hoping for 2019 to be better, more profitable, and to have more success than 2018.

The hope for the future is even more important when we consider all the negative development in 2018. There were numerous high-profile hacking attacks, two market crashes, with a strong bear market in between. Not to mention that some of the biggest projects that may have brightened the year a bit ended up being delayed.

With that in mind, it is understandable why investors are looking forward to the new year and all the potential development that it may bring. In fact, there are several reasons why they should be excited about 2019.

1) Bearish market to loosen its grip

The first reason why 2019 can be a good year digital currencies is that it may finally break free of the bearish grip that has been felt ever since last January. Following the first market crash, the bears settled in, and the prices kept falling for an entire year. The market attempted to shake off the negativity on several occasions, with the biggest one being…

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3 Coins with the Largest Potential in 2019

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2018 has been a pretty bad year for digital coins, and after the initial market crash that occurred a year ago, everyone was expecting a bull run that will fix things. Obviously, it never arrived, and instead of that, all that crypto market experienced was an entire bearish year and another crash in mid-November.

Now, however, it is a brand new year, and attempts to shake off the bears’ grip can be seen even in these first two weeks. The market is still struggling and mostly losing value, rather than gaining, with most coins being in trouble once more. Still, a lot can happen in a year, and most investors remain optimistic regarding 2019. Here are some of the coins that are believed to have tremendous potential, and to be the hope of this year.

  1. Bitcoin (BTC)

Of course, Bitcoin comes first. This is the first cryptocurrency which is still dominating the market, with no other coin being even close to its market cap or price. BTC is the coin that has reached the most prominent heights, and it also lost the most in the previous year. However, there is still hope, as there are several projects and events scheduled for this year that might turn things around for the number one coin.

One thing that is expected is the approval of Bitcoin ETFs…

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Do or Die: 3 Crypto Projects that Really Need to Deliver Soon

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Crypto projects have gone through several crucial periods of development, and while it is fascinating to watch their progress to maturity, a lot of investors are becoming impatient. During the first few years, they were barely known, only talked about in specific groups, among those developers and investors who had the luck to find out about them in the early days.

The next several years, altcoins started appearing, and the voice of cryptocurrency slowly started to spread. Then, there was a period of hype, when crypto exploded, and the entire world finally learned about this new technology that promised to change the world. Naturally, the overhype led to a market crash and price correction that we experienced last year, but the impact was made, and the world is still talking about them on a daily basis.

However, now is the time for cryptos to deliver on their promise, grow up, and start showing results. There are high expectations for many projects, but for various reasons, they have yet to deliver, and many are hoping that 2019 will be the year when they finally do it. Let’s see which 3 crypto projects really need to show results, and soon.

1) Ethereum (ETH)

Are you surprised to see Ethereum at the first spot? The project has been a top cryptocurrency for years, why would it be in danger now?…

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