The coronavirus pandemic has wrought financial turmoil for all kinds of assets and commodities — such as a massive crypto dip and plummeting oil prices.
But using a barrel of crude diving into the negative zone earlier this week before recovering — a crypto-related puzzle is growing. How is that while cryptocurrencies encounter volatility and petroleum costs tank, one token — that the Venezuelan state-issued, oil-backed petro (PTR) — shows cast-iron resilience into the market pandemonium?
Even though Venezuela has some ways to export its oil reserves — and also the simple fact that the petroleum market had bottomed out even in major oil-exporting nations — the price of PTR 1 stays almost the same as when it was initially issued.
Per the (government-run) petro calculator, a single petro token will now cost you precisely USD 58.71. In reality, the official cost of the petro has remained almost unchanged since Caracas issued the petro white newspaper back in 2018, in which its value was recorded as USD 60.
But, there are signs that not everyone buys the official line on crypto prices. Even government-owned banks appear to disagree.
Seven, to be precise, per the authorities crypto regulator. Puzzlingly (although one has recently closed down), none of those platforms currently lists an accurate cost for your petro.
Add to this the fact that Criptonoticias additionally reported in January that consumers on peer-to-peer crypto trading platforms such as LocalBitcoins have been looking to sell their petro holdings for around half of what the government says they are worth.
P2P crypto trading platform Hodl Hodl has also been enabling users to market petro trades, disparaging referring to its policy of allowing people to eliminate the”shitcoins.”
Given the fact that the vast majority of the oil reserves that Caracas claims underpins the petro stay unbarrelled, underground and almost unsellable due to Washington-issued sanctions, it appears that the purchase price of the petro — which can be subject to rigorous United States sanctions — will officially stay at whatever amounts Caracas determines.
The official petro calculator is available here, in case you’re interested in what the Venezuelan state considers your bolivars, bitcoin (BTC), yuan, rubles, yuan, euros or dollars are worth in this officially bulletproof token.