Venezuela's $5b Ethereum Based PETRO ICO Whitepaper Released!
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On today's show:
Venezuela Releases Petro Whitepaper Ahead of their $5 Billion ICO
http://www.elpetro.gob.ve/index-en.html
This has been coming for a little while now, it’s just a case of getting more details on exactly how it’s going to roll out.
The ‘Petro’ is a cryptocurrency that the Venezuelan government plan to launch and back with the country's huge oil reserves.
Almost sounds like an alternative to the ‘Petro Dollar’ does it?
Dangerous territory if you ask me. The US tends to get upset when anyone challenges the dominance of the dollar.
The Petro is going to use Ethereum, but only to conduct the ICO. After that the Ethereum based ERC20 tokens will be swapped to native tokens on the PETRO platform.
The president of Venezuela Nicolas Maduro has now officially signed off the whitepaper for release.
And if you don’t believe me head on over to elpetro.gob.ve
Because here you can download and read the whitepaper for yourself.
This is a significant milestone in crypto history. The first example of a nation state doing an ICO, did you ever think we would see it?
Unfortunately they are not using a public blockchain but it’s progress nonetheless.
I mean, an actual government opting to participate in a new economy built by the people of the world? I think that sets a big precedent. It’s the first domino.
Feel free to read the official materials yourself but I’ve picked out a few highlights for you.
There’s always this question of how a cryptocurrency acquires value.
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Here is the answer.
It gets better…
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I’ll say it again, that is NOT going to go down well the US government in my opinion.
It’s a shame they didn’t opt to build the whole thing on Ethereum because then it would be unstoppable.
The downside is such a path means the Venezuelan government giving up a bit too much control, plus Ethereum doesn’t currently have the capacity they’d need.
Now I said a minute ago that the PETRO acquires it’s value because the government will accept it as payment for taxes, but that’s more the answer as to where demand will come from.
It’s value is derived from the value of a barrel of oil.
The initial price of a PETRO is set to be around $60. Then if the price of oil rises, the PETRO should follow.
It’s basically tokenised Venezuelan oil, except it’s so much easier for the average person to acquire. It levels the playing field in exactly the way we have been waiting for.
I say the average person can acquire it, however there’s a caveat
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So who knows which exchanges will be selected and what kind of limitations there will be on who can trade it.
In conclusion then:
Suffice to say, I have my reading material for today. I shall duly digest the whitepaper and see what else I can find.
One fact to bear in mind, is that Venezuela has the highest amount of proven oil reserves in the world.
More than Iran, more than Canada and than Saudi Arabia.
The other fact to note is that the hard cap for the PETRO ICO is $5b.
That’s 4.5% of Ethereum’s market cap at today’s price.
That could cause a major pump in the price of Ether so bear that in mind as we move towards the launch of the pre-sale on the 20th of February.
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This will put other countries in pressure. Good job #veninzuella
This could really send Ethereum into the stratosphere, but I have a hard time believing the Trump administration is just going to sit by and allow Maduro to evade sanctions with the petro.
Don't get me wrong, I would love for crypto tech to alleviate the suffering of the Venezuelan people, but Maduro is practically begging to be invaded with this move.
The white-paper is overall very humble about the state of Venazulean finance and monetary systems. There are no fighting words in the whitepaper and more than a few times pledge to innovate for all emerging economies. It reads more like marketing material for the IMF and UN. Trump, does not have enough backing to make a military move over this. A cyber move, that might be so... I gander this is the Russian honey pot to see what kind of flies get caught up in a sovereign analogue financial system converting into a digital blockchain systems.
It is one of the best news of the 2018 so far otherwise we all know how market is performing.
I am happy governments are adopting crypto.
Are you planning to take part in ICO?
Yes. I'm going to take part just to say 'I was part of that' :)
es bueno que estos paises adopten las criptografia para que salgan a delante a venezuela le vendría mejor algo de esto para que pais salga adelante es bueno escuchar esto
You just said what I say to my friends if I have to convince them to jump into the cryptocurrency. I say them can't you do it to just have a good story to tell to your grandchildren after 40 years when you grow old :0
The potential pressure points impacting the success or failure of El Petro.
Wow! Your best point is like just a throwaway line at the end. If institutions want to invest in this thing, they are going to have to acquire $5 billion worth of ether! That's something about on the order of 20x the largest ICO to date and about 5x the planned Telegram TON whopper ICO which still seems a ways out.
So what'll happen if the majority of petro holders are non-Venezuelan? Wouldn't that defeat the purpose of it being a national currency?
This is amazing. Thanks for sharing this information.
I wouldn't give a dime to those Communist scumbags...
If they have all this Oil, why do they need crypto?
Start Pumping; it sure worked for the Saudis.
Pray for the people of Venezuela to crush their Socialist Leaders...
Newq
Since this is coming from you, I'd give it a try 'cause I mean it's Venezuela, one of the worst run countries on earth.
Could tell since throughout Nigeria's slump into a pit of untold hardship and recession, Maduro's nation was used as a benchmark to how low the mighty could go.
But like I said, your insight shows I can't just decide to judge "petro" based on the above.
On it.
I am more interested on the rise of ethereum price when the ICO starts...thanks for the info sir.