Venezuela starts pre-sale of Petro cryptocurrency

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"Six weeks ago I announced the creation of the Venezuelan cryptocurrency", the president adding that the government had been working to launch the currency since then.

At the same time, many analysts comment that the Petro may quickly become "a shitcoin" - digital currencies that become worthless over time or are considered scams, despite the claims it is backed by tangible assets like oil, gold and diamonds.

Pre-mining coins essentially means that once the ICO is finished, no new tokens can be created.

Carlos Vargas, Venezuela's cryptocurrency superintendent, revealed recently that the country was preparing to set out its plans to launch the petro, with the first sale scheduled for today.

Venezuela has been suffering from a severe financial crisis, and the government isn't in a position to fulfill even basic necessities for its people.

Moreover, the Venezuelan government planned to make "national" digital currency provided by oil reserves of local origin. Presale began with one token going for $60.

He said about 100m Petro tokens worth some $6bn will be issued and each token will be backed by one barrel of the country's oil. The country has the largest crude oil reserves in the world.

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Trump "campaigned promoting non-interference in other countries' domestic affairs", Maduro tweeted, tagging the USA president's account.

It's unclear how much demand the petro will draw.

Maduro has also touted the petro as the fulfillment of the late Hugo Chavez's dream of upending global capitalism away from the dominance of the US dollar and Wall Street.

Analysts are showing their concerns over the long-term success of petro coin, as the US has already denounced this cryptocurrency.

The U.S., which has already imposed sanctions on Maduro and his regime and labeled the head of state a "dictator", has also declared that it has no intention of recognizing the upcoming election. The crypto-currency is the world of the future.

The United States, Europe and other global critics of Maduro may increase the pressure soon to force him to leave or adopt democratic reforms. However, OVCS notes “an uptick in lootings and attempted lootings” as well as “scattered and spontaneous protests”, unlike the concentrated protests called by tradition opposition parties in a specific part of town against Maduro.

On a recent tour of Latin America, top U.S. diplomat Rex Tillerson floated the idea of slapping sanctions on Venezuela's oil exports, the source of 96 percent of the country's revenues.