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Is Petro falling apart? No oil, no user and no investor linked with the cryptocurrency

Akash Anand

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Is Petro falling apart? No oil, no user and no investor linked with the cryptocurrency
Source: Unsplash

The Petro-Venezuela scandal does not seem to die down with latest reports showing that the cryptocurrency which was supposed to solve Venezuela’s financial crisis has a couple of glaring missteps and loopholes. It has been revealed that there have been no use cases of Petro being reported from within Venezuela and the investment, amounting to almost $20 billion, is missing.

Petro has been creating waves in the cryptocurrency industry ever since it was announced back in December 2017. CoinMarketCap, the platform that lists all tradeable cryptocurrencies in the world, does not list Petro anywhere on its platform, which is a red flag, according to many users.

Reports compiled by various agencies have shown that Petro has had no users or investors using the cryptocurrency. Even before the ‘official’ launch of the cryptocurrency, enthusiasts and researchers were of similar opinion by stating that “the addition of a digital asset to the flailing economy will not have any positive impacts but rather give cryptocurrency adoption a push back to the realm of non-acceptance.”

On ground surveys conducted across Venezuela have shown that no shops or institutions actually accept Petro as a form of payment. Petro’s situation was not helped when it was revealed that the cryptocurrency was not available on any know digital exchange.

An official report released by Thomson Reuters pointed to a few people who had actually used Petro. The report stated:



“None would identify themselves. One complained of being “scammed.” Another told Reuters he had received his tokens without a problem; he blamed U.S. sanctions against Venezuela and “awful press” for hurting the petro’s debut.”

Agencies within the country are coming out to the front by informing the public that even government officials are not confident about the cryptocurrency. Hugbel Roa, supervisor of the Venezuelan Blockchain Observatory went on to say that “nobody has been able to make use of the petro… nor have any resources been received.”

Nicols Maduro, the president of Venezuela has been confident in the success of Petro and its affiliates. The leader of the nation was highly criticized for linking a failing Bolivar with Petro and calling it ‘Sovereign Bolivar’. Juan Pablo Sosa, a Twitter user stated:

“Yes that’s what trx needs, to have maduro and his bullshit petro backing it up… read some news dude, if you do that you lose all your Americans holders and traders, plus you are contributing to the dead of more Venezuelan People…and now I will unfollow you for your humanity”





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Altcoins

FLiK case: Utility tokens take another hit in case allegedly involving Rapper TI, claims prominent lawyer

Priya

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Source: Unsplash

Stephen Palley, a prominent lawyer at Anderson Kill, spoke out about the FLiK token case via his official Twitter handle. Notably, unlike most tokens in the space, FLiK made headlines because of its celebrity backing.

Towards the end of last year, it was reported that the US Rapper Clifford Joseph Harris Jr., who goes by the stage name T.I. and T.I.P., was sued for $5 million over the alleged failure of the token promoted by him and his partner, Ray Felton. The rapper was being sued by a group of 25 individuals who claimed that that they invested around $1.3 million in the tokens.

Additionally, there were allegations that the rapper used the raised money to increase the token’s value, following which the duo sold their holdings after the coin crashed. Other well-renowned celebrities such as Kevin Hart and Mark Cuban were also reportedly associated with this project.

On the recent developments surrounding the case, Stephen Palley stated,



“Utility tokens” take another hit in case allegedly involving rapper TI. Court says FLiK ICO tokens = securities under Howey Test, for motion to dismiss purposes. That they offered some functionality ≠ relevant given buyers’ expect of profits solely from efforts of others. 1/4″

Source: Twitter

Source: Twitter

Source: Twitter
The lawyer further stated that,”use of funds” was already determined by the defendants, “per the FLiK token whitepaper.” He went on to state that there was a time problem, adding that Federal Law rules that “unregistered sale” of security tokens were supposed to be reported within 12 months after the violation.

The lawyer concluded by tweeting,

“ps — form was never going to be exalted over substance, so none of this is a huge surprise. Also, this is a ruling on Rule 12(b)(6) motion to dismiss so the Court takes the allegations as true for purposes of ruling. The merits still have to be litigated.”





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