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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

Altcoins

Here’s Why This Coin Still Has Wings (WINGS)

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WINGS, a decentralized crowdfunding platform based on the Ethereum blockchain, has had a great run over the past two months. Culminating in a peak of US $.23 just a few days ago, the currency behind the product has more than doubled since it’s lows of early September.

Despite the slight downturn WINGS is currently experiencing, this crypto-favorite may not be done running up the green candles on your favorite exchange just yet. A small drop like we had today was actually expected and could be considered healthy by long-term investors. These dips are also appreciated by those of us waiting to get in on a project we feel has real potential. WINGS has shown us that potential and is now presenting a great buying opportunity for speculators and traders looking for the next wave of support to lift this coin into the stratosphere.

What is WINGS?
WINGS was created to nurture project proposals via the Decentralized Autonomous Organization (DAO) model. Using blockchain networks and smart contracts, the platform allows the WINGS community to promote proposals with the greatest chance of positive returns. WINGS, in essence, is a decentralized forecasting ecosystem, where token holders are given an incentive to make choices concerning projects on the platform.

The DAO is a popular concept for crypto-projects that want to remain entirely on the web. Using the peer-to-peer technology of blockchain and smart contracts to enforce the rules of participation is…

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6 Blockchain Predictions For 2019

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As 2018 moves closer towards its end, investors, developers, and tech enthusiasts are starting to turn their gaze towards the future. 2019 is less than two months away, and it promises new breakthroughs and large changes. This is especially true when it comes to blockchain technology.

While 2018 was an important year for this technology’s development, many are wondering what awaits us in the near future. Because of this, we have created a list of 6 predictions regarding the blockchain, as well as what might happen to it in 2019. Let’s begin.

1. Search for new and better business use cases

Blockchain technology is wrongly seen by many as a magical way to resolve all issues that we struggle with today. However, while it is true that blockchain can help with a lot of them, there are still numerous other problems that are better suited to be solved by alternative technologies. Robotics, AI, and similar technologies are not to be discarded in blind faith in the blockchain.

Researchers and developers have recognized this, which is why 2019 will be dedicated to finding specific use cases for blockchain technology. Blockchain will be used in situations where it can have the strongest positive impact. In other words, the goal is not to find places where this tech can fit, but to find places where it is the best fit.

2. Fixing blockchain industry’s image

For a lot of people, blockchain…

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TRON DEX Goes Crazy, TRX Founder Asks For More Projects

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Less than a week ago, TRON (TRX) community uncovered a new DEX (decentralized exchange) on Tronscan.org. Since TRON community is among the strongest and most supportive communities to ever support a coin, trading activity on this DEX quickly skyrocketed.

So much so, in fact, that TRON’s founder, Justin Sun, felt that he should share this fact on his Twitter account.

TRON DEX sees massive growth in activity

Since Sun shares a lot of traits with TRX community, such as tirelessness and fascination with this project, he was quick to urge the community to come up with additional tokens and projects.

While Sun’s statement that the activity on the DEX is “going crazy” is pretty accurate, many do not realize just how accurate this is. It should be pointed out that the number of tokens on the exchange was 3 on November 10th, when the DEX was originally uncovered. Today, on November 13th, the number of available tokens has doubled.

In addition, 4 out of 6 trading pairs offered on the exchange have experienced significant gains, with the remaining two experiencing only slight drops. The growth was experienced by Dice/TRX (146%), TronWatchMarket/TRX (8.27%), WIN/TRX (89%), and SEED/TRX (1.73%). The drop was experienced…

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