Venezuela’s Controversial Petro Cryptocurrency Is Now Officially on Sale

John Vibes
  • After many delays, the Venezuelan government's controversial fiat cryptocurrency, the Petro, is finally on sale.
  • However, the currency may struggle to find market share among so many trusted and decentralized alternatives.

After many delays, the struggling Venezuelan government has finally begun selling its fiat cryptocurrency, the Petro. Last month, Venezuelan officials issued a statement announcing that the currency was listed on some of the world's largest exchanges, but the listing was nowhere to be found, and the government was silent about the project until the new round of announcements this week.

According to Venezuela’s vice president of the economy, Tareck El Aissami, the Petro can now be purchased directly from the Superintendency of Cryptoassets and Related Activities (Sunacrip). However, the launch is already off to a rocky start, as the official wallets have been removed from the Google app store, and are no longer available through the Petro website. So far, most of the support for the Petro has come from local politicians, some of whom were photographed purchasing Petro at Sunacrip’s headquarters.

After the purchases, the politicians were given certificates of ownership and answered questions for reporters.

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Petro Backing

The government of Venezuela insists that the Petro will be backed by oil, which if true, could prevent the government from excessively printing money and devaluing the currency, a policy which has generated the current economic crisis in the country.

Petro’s recently released whitepaper specifies that the currency is backed by a portfolio of gold oil and diamond. It is important to note that the public has lost significant trust in the Venezuelan government and its central bank as a result of the hyperinflation crisis, and the sloppy roll-out of the Petro. Moreover, many Venezuelan citizens have already become comfortable using more trusted and decentralized cryptocurrencies such as bitcoin (BTC), bitcoin Cash (BCH), and dash (DASH).

Ironically enough, Ethereum developer Joey Zhou pointed out last month that the whitepaper for the Petro seems in fact to be a “blatant Dash clone.”

Venezuelan president Nicolas Maduro claims that all oil purchases in and out of the country will be paid in Petro, which could be where the most popular use case for this blockchain if it is rejected by the citizens. Venezuela is one of the world’s top exporters of oil, so if they were able to require foreign buyers to trade with them in Petro, it has the potential to turn the crypto into a valuable asset; For now however, it seems that this is a risk not many seem willing to take.

Litecoin (LTC) Price Analysis – April 30

  • The crypto’s price is in a bullish trend but may face resistance at $76 price level.
  • The price of Litecoin is in a bullish momentum in the short and medium-term trend.

Litecoin, LTCUSDLitecoin Chart by TradingView

LTCUSD Medium-term Trend: Ranging

  • Resistance Levels: $60, $65, $70
  • Support Levels: $60, $50, $40      

Yesterday, the price of Litecoin was in a bearish trend after it was resisted at the $76 price level. This bearish trend had been ongoing since April 7, after the bulls were resisted at the $96 price level. On April 29, the crypto’s price fell to a low at $70.93. This price level is likely to hold because it was the previous low of July 11, 2018.

Today, the crypto’s price is in a bullish trend but may face resistance at the $76 price level. On the upside, if the bulls break the 12-day EMA and the 26-day EMA, the $76 resistance level will be broken automatically. The crypto’s price will rise to retest the $84 resistance level.

On the other hand, if the bulls fail to break the resistance level, the crypto’s price will resume a range bound movement. Meanwhile, the stochastic is in the oversold region but above the 20% range which indicates that the crypto is in bullish momentum and a buy signal.

LTCUSD Short-term Trend: Bearish

Litecoin, LTCUSDLitecoin Chart by TradingView

On the 4-hour chart, the price of Litecoin is in a bearish trend. A bearish trend line showing the resistance levels with pointed arrows. If a bullish candlestick breaks the trend line and another candlestick closes on the opposite of it then the current bearish trend is said to be terminated.

However, if a candlestick breaks the trend line and retraces back to its origin price level, then it is a false breakout. Today, the current bearish trend may have been technically terminated. If the bulls break the $76 resistance level, the crypto’s price will retest the previous highs of $84 and $96.

Meanwhile, the stochastic is in the oversold region but above the 60% range which indicates that the crypto is in a bullish momentum and a buy signal.

 

The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.