Crypto Money: Maduro Launches Venezuela’s Cryptocurrency
CRYPTO MONEY – On Monday, President Nicolas Maduro has officially launched the Petro, the national cryptocurrency of Venezuela. The announcement for the launching of the crypto-coin was made earlier and there was about $5 billion of an initial coin offering (ICO), making it the most successful ICO so far. Petro is backed by the oil, gold, and mineral reserves of Venezuela. In spite of this, there were several red flags that have been discussed during the past months.
The Petro is currently live and is believed by local officials that it would neutralize the threats from money mafias and black markets. Petro is part of the culminating of the Economic Recovery, Growth, and Prosperity Program of Venezuela. The national cryptocurrency might give hope to citizens following the collapse of the national fiat currency from about 10 Bolivars per US dollar to about 250,000.
“The Petro, unlike other digital currencies, doesn’t need to be mined because it already has a value, it is shielded with Venezuelan oil and mining wealth,” President Nicolas Maduro said.
Additionally, he stated that everyone can buy Petro with cryptocurrencies such as Bitcoin, Ethereum, US dollars, and even real currencies. Under the National Development Plan, the Petro will become available for sale in exchange for Bolivar starting November 5. Hence, Venezuelans can buy Petro with Bolivars and hold bonds in the new digital currency.
According to Maduro, the Petro is possible to be traded on six major international exchanges and it would be accepted nationwide.
“All Venezuelans will have access to the Petro and through it to make international purchases,” he added.
In an interview, Foreign Minister Jorge Arreaza said that the Petro could lessen the impact of money mafias, which caused the collapse of the Venezuelan Bolivar. The Venezuelans can exchange their Bolivars to a rate of 3,600 Bolivars per coin.
Crypto Money: WSJ Says Trading Bots Manipulate Crypto Prices
On Tuesday, a Wall Street Journal (WSJ) report stated that there was manipulation in digital currency prices by automated trading programs.
These programs are also known as bots, they can automatically operate trade orders at a faster speed than any human is able to.
The WSJ pointed out that these bots can easily hurt the reputation of markets and individual investors due to the lack of proper regulation in crypto coins in markets.
“The bot’s strategy was similar to ‘spoofing,’ a practice in which traders enter fake orders only to cancel them. The tactic, aimed at tricking other investors to buy or sell an asset by falsely signaling there is more supply or demand, was outlawed in U.S. stock and futures markets in 2010,” said WSJ.