Venezuela launches an Ethereum based token before selling Petro

The closer the release date of the Petro crypto currency, the more disputes there are. The white book of this currency, which is published at the present time, causes a lot of mixed feelings. The government of Venezuela creates a token in which no one needs, and which has no real purpose. More specifically, the plan for creating a token based on Ethereum raises many questions. Although this approach makes sense, it is a little unclear how this is related to the crypto currency.

Since then, as this idea was first announced, there is much criticism around Petro. National centralized virtual currency makes a lot of sense in Venezuela. The country suffers from financial difficulties and actually suffers a serious lack of money. The use of natural oil reserves tied to a new form of money is their last option. This week, a technical document of the Crypto-currency was published. This is a positive movement, although not all react to this specificity positively.

The new concept does not make sense

It seems that the Venezuelan government first wants to create a token based on Ethereum. This ICO does not have a real connection with Petro itself. Nevertheless, the ICO concept is the last thing anyone could have expected at the moment. It is assumed that the crypto currency will also have its own public offer. This new token, in turn, will help "cause demand" for the digital currency.

Perhaps these Ethereum tokens will be replaced by Petro in the future. If this is the case, then they do not have a long-term use perspective. After all, the crypto currency is supported by oil reserves. This token has no value and, apparently, does not correspond to the existing plan in any way.

Author: Olga Novikova, Analyst Freedman Club Crypto News

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