The Petro saga continues to rumble on, as with every passing announcement things become more confusing. Nicolas Maduro – President of Venezuela – has already been using the Petro to fund projects, such as the building of homes for homeless people, but contractors can’t yet exchange the Petro for fiat to buy building materials. However, he has recently come out and said that the Petro will begin trading on top crypto exchanges around the world on October 1st and the public sale will begin in early November. Unfortunately, this already is starting to feel like hocus pocus, due to the fact it’s now October 4th and the Petro isn’t listed on any of the major exchanges.
In addition to the lies surrounding the Petro, the order of events seem slightly odd – surely the public sale should come first so exchanges will have trade volume? It’s just another day in the world of the Petro!
White Paper Gets an Update – Again
Now on its 100th iteration, the Petro’s white paper has changed more times in the past year than a woman getting ready for a night out. The original white paper stated that the Petro would be 100% backed by the price of oil, but it didn’t explain how this would happen. Then came a number of iterations that slightly tweaked various processes and how the Petro works, but still no method of how it’s tied to the value of oil.
In the latest iteration, the Petro is now tied against a basket of commodities in varying percentages. This insane valuation method will make securing a set price for the Petro virtually impossible. According to the new white paper, the Petro is now pegged 50% by the value of oil, 20% iron, 20% gold, and 10% diamonds – good luck figuring that one out.
Petro Forced Upon the World
In a desperate attempt to save the Petro from failure and undoubtedly a coup, Maduro has imposed a new law that all oil purchased from the country must be paid for in Petro. This means oil products for cars, boats, and airplanes. This means that any foreign airline landing in the country better have a stash of Petro to pay for fuel – if it’s planning to refuel in Venezuela. This could lead to flights being diverted to other airports or Venezuelan routes being cut by top airlines. Maduro has already claimed that the Petro will be used for international exchanges of goods, perhaps this is what he was talking about.
Whichever way you cut it, the Petro is doomed. It isn’t listed on CoinMarketCap and has yet to be listed by any of the top crypto exchanges around the world. Until these things happen, the Petro is nothing but smoke and mirrors designed to give the illusion the government is resolving the country’s hyperinflation issues.