Venezuelan Government Claims New Cryptocurrency Raised $735 Million. The government of Venezuela has been working to produce its own new cryptocurrency as a means of raising funds amid the ongoing sanctions against the country by various outside parties. President Nicolas Maduro stated that the Petro currency raised $735 million during the first day of its pre-sale. This is in spite of there not being much data on how the coin works.
Maduro says that the success of the pre-sale confirms that Venezuela can be a self-sustaining country and that it does not require the outside assistance of other countries. This all comes as Venezuela has not received funds from other places due to ongoing issues with the Maduro government.
The Petro currency will be linked to oil reserves in Venezuela among other commodities. The price of each Petro coin will be linked to a barrel of oil. This helps to regulate how the value of the currency will trade on the market.
The general goal is to not only raise funds but to get more investors from various parts of the world. These include investors from Europe, the Middle East and the United States. The government is specifically hoping to get investments from Qatar and other Middle East countries where the oil trade is strong and proficient.
Maduro is hoping that the currency will also show Venezuela’s independence amid ongoing sanctions from other countries against his government. But even with this, the cryptocurrency is struggling with some significant issues.
To start, the government has not released information on where the $735 million from the pre-sale came from. Although the government wants to work with more investors from different countries, it did not specify if any people from those outside places actually invested in the Petro coin.
Also, it is uncertain if the cryptocurrency can actually be taken seriously by people looking to invest in something relating to the country. Venezuela has been struggling with debt in recent time. The bolivar, the country’s cryptocurrency, has also collapsed. Hyperinflation is also a serious threat to the country as it could add even more harm onto the country.
There are also shortages of food and other resources in Venezuela. This is due to significant price control problems that are making it harder for people to afford to buy products or to even manufacture them.
Asset manipulation is also a problem that many people investing in the currency are worried about. There is the argument that the national government might try and engage in price fixing. This comes as the government has been engaging in socialist activities that have hurt the economy and done more to impact the currency in a negative manner.
The information about how the currency will be given out is relatively minimal as well. Details on what people can use the currency for are scant as well with some arguing that it may be used for ordering oil barrels from the government. However, the government is continuing to promote the Petro and will continue to operate its pre-sale in the hopes of getting more funds off of the currency.
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