The Petro Cryptocurrency and Oil Reserves Behind It May be Fabricated Lies
The Petro Cryptocurrency and Oil Reserves Behind It May Not Exist
The Petro, the Venezuelan national cryptocurrency may not even exist. This virtual currency was going to be backed by oil reserves that the country produced. But according to a Reuters special report, the region close to the town of Atapirire is not producing anything related to the Petro.
Atapirire is a town that was going to be transformed to a new city with the new cryptocurrency. This region is the place that was selected to extract the oil reserves backing the Petro.
At the beginning of the year, Nicolás Maduro announced the creation of the Petro. The region seems to have over 5.3 billion barrels of crude oil, according to data from an ‘independent international certification agency.’
Currently, the country is facing terrible financial and economic problems. According to reports from Bloomberg, the situation is similar to the one lived by Weimar Germany and Zimbabwe. Indeed, the inflation rate could reach 1 million percent, according to the International Monetary Fund (IMF).
The oil reserves in this place were going to be extracted from an oilfield known as Ayacucho I. The price of a Venezuelan crude oil was going to be used as a guide for the Petro. With the funds gathered for the Petro, several jobs were going to be created in the region. Additionally, the oil export industry would have a new life with more investments.
However, the area looks very different from reality. The Petro has not created any new jobs in the region, and the town of Atapirire has not received any investment. And indeed, users that bought Petro are still waiting for their tokens. As per the report, there are no shops in Venezuela accepting the Petro. Indeed, there are some posters in Bitcointalk that complain that they were scammed by the government.
This is quite different from the official version of the Venezuelan government that says that the Petro ICO raised $5 billion dollars and that the coins are already being used. In addition to it, Hugbel Roa, involved in the Petro project, explained that people does not have Petro yet because they are still developing it.
The Superintendence of Cryptoassets, in charge of regulating the Petro, did not confirm the physical presence of the currency. The website is not active and the president of the agency, Joselit Ramirez does not answer messages on his social media accounts.
Venezuela wanted to create a virtual currency to circumvent current financial restrictions and impositions from western countries such as the United States. According to official reports, the Petro ICO was able to raise $5 billion dollars, something that would make it the most successful ICO ever. Tom Robinson, chief data officer and co-founder or Eliptic, commented on the matter:
“This certainly doesn’t look like a typical ICO, given the low level of transaction activity. We have found no evidence that anyone has been issued a petro, nor of it being actively traded on any exchange.”
There is only one exchange listing the Petro, Coinsecure in India. But no other platform is displaying it at the moment.
In Venezuela, people believe that Maduro and the government are not able to deal with the Petro and that it is a fraudulent activity. Alejandro Machado, a cryptocurrency consultant and computer scientist in the South American country, says that the government has just built castles in the air.
“There is no way to link prices or exchange rates to a token that doesn’t trade, precisely because there is no way to know what it actually sells for,” he commented.
There is no infrastructure or visible investments close to Atapirire, which is quite suspicious. Another profesor known as Francisco Monaldi, explained that the investment plan for this area is nonexistent.
At the moment, the market is still waiting for the Petro to appear and show real use cases.