It’s unclear why investors would buy at that price, said Russ Dallen, the managing director at Caracas Capital. There’s no guarantee that they’ll be able to exchange Petros for oil. The country is so strapped for cash, it can’t afford basic supplies like food and medicine.
Investors will have to overlook confusion about how the currency will operate. The white paper says the Petro is built on the Ethereum network, while the user guide the government published says it’s on the Nem network. There are also questions as to whether the $735 million raised so far touted by the government is true, as the public Petro blockchain
shows inflows for about half of that.
On the other hand, speculators were willing to buy cryptocurrencies based on a meme and the self-proclaimed “Useless Ethereum Token,” so anything is possible.
“At the right price, people will buy anything. Even Venezuela’s latest joke,” Dallen said.