Home / Crypto Currency / Venezuela Wants a Separate Ethereum Token Presale Before Petro Launch

Venezuela Wants a Separate Ethereum Token Presale Before Petro Launch

It seems more controversy regarding Venezuela’s Petro looms on the horizon. With the whitepaper for this currency now public, there are a lot of mixed feelings. More specifically, the plan to create an Ethereum-based token raises a lot of questions. While that approach makes sense, it is a bit unclear what this has to do with the actual cryptocurrency itself.

Ever since this idea was first announced, there has been a lot of criticism surrounding the Petro. A national centralized cryptocurrency makes a lot of sense in Venezuela. The country suffers from financial hardship and is effectively running out of money. Using the natural oil reserves tied to a new form of money is their last realistic option. The whitepaper for this particular currency has been unveiled earlier this week. That is a positive change, even though not everyone likes the specifics as of right now.

The Petro Concept Makes Even Less Sense now

More specifically, it seems the government of Venezuela will create an Ethereum token first. This initial coin offering has no real connection to the Petro itself. Even so, the concept of an ICO is the latest thing anyone expected at this point. The cryptocurrency is supposed to have its own public offering as well. This new token will, in turn, help “drive demand” for the cryptocurrency. It doesn’t make much sense to most people for obvious reasons.

It is possible these Ethereum tokens are to be exchanged for the Petro in the future. If that is the case, there is no long-term use case for the tokens themselves. After all the cryptocurrency is backed by the oil reserves. This token has no instinct value and seemingly doesn’t fit this plan in any way possible. With the pre-sale of these tokens starting in two weeks, it will be interesting to see how things play out. The Petro presale will commence on March 29th, as originally communicated.

All of this only makes the entire Petro ordeal even more worrisome. The Venezuelan government is creating a token no one needs and which serves no real purpose. Considering how the cryptocurrency sale will only be open to accredited investors, it’s safe to assume the same applies to this Ethereum token. For now, there are a lot more questions than answers regarding this venture. It’s no real surprise, all things considered, but it fails to make any sense.

Header image courtesy of Shutterstock

Read more

Check Also

Police Arrest Four Ukrainians for Running Fake Cryptocurrency Exchanges

Law enforcement in Ukraine has arrested four young men who were running at least six fake cryptocurrency exchanges. The cryptocurrency sphere is an exciting space, and many people are eager to begin buying and selling virtual currencies. However, such an influx of money and inexperienced newcomers also bring out the criminal element, seeking to gain funds at the expense of those new to the space. Scams abound, but police in Ukraine have done their part by arresting some individuals who ran a number of fake cryptocurrency exchanges. Using Programming Skills to Set up Scams In the city of Dnipro, Ukraine, police announced that they had arrested four men between the ages of 20 and 26. The quartet had set up a number of fake cryptocurrency exchanges. Police know of six fake exchanges that they operated, but there is a definite possibility that there may be more. The six fake exchanges include: moneycraft.info, wowex.online, swapex.net, myexchanger.lv, iconvex.net, and likechange.biz. Police say that the criminals had “special knowledge and skills in the field of programming” and “have created their own CMS-system for managing the content of exchange sites.” Unsure of Amount Stolen Police are asking those who were scammed by the fake cryptocurrency exchanges to come forward and file complaints. As of now, law enforcement does not know exactly how much the four men were able to steal from their victims. Police may be able to glean such information from the equipment that was seized during the arrests. It was reported that flash drives, computers, smartphones, and other equipment were confiscated when police raided the homes of the four men. The reality is that crime and scams are rampant in the cryptocurrency sphere. One should always do due diligence before spending any money. The world of virtual currencies is still akin to that of the Wild West, which means that danger is just as close as excitement and opportunity. Have you ever been scammed by a fake exchange, wallet, or ICO? Let us know in the comments below. Images courtesy of Shutterstock. The post Police Arrest Four Ukrainians for Running Fake Cryptocurrency Exchanges appeared first on Bitcoin Network, News, Charts, Guides & Analysis.

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.