Topic: [PRE-SALE][ICO] Petro $PTR - Oil backed crypto currency launched by Venezuela - page 65. (Read 28472 times)

The more I read the White Paper and the more I realise it's pretty well done. The confusion comes only from the polemic political chit-chat, but the process is very well described.

We are in the pre-sale and this is a private sale: only institutional investors can buy.
When this phase is over (19th March) the public ICO start: everybody should be able to buy then.
The ICO will last until all the tokens have been sold.

Download the White Paper here: http://www.elpetro.gob.ve/Whitepaper_Petro_en.pdf

How the sale of Petro works

There has been some confusion in the discussion. This is how the sale works according to the White Paper (taken directly from it):

Total emission: 100.000.000

Pre - Sell
Tokens available: 38.400.000
Reference Selling Price: oil barrel = USD 60 (approx.)
Start date and time: February 20, 2018 at 08:30 a.m. (Venezuela time, -04:00 GMT).
Closure date and time: March 19, 2018 at 23:59:59 p.m. (Venezuela time, -04:00 GMT).
During the process, discounts that reduce over time will be applied to stimulate early investment.

Initial Offer
Total Petro available for sale: 44,000,000
Reference Selling Price: oil barrel = USD 60 (approx.)
Start date and time: March 20, 2018 at 08:30 a.m. (Venezuela time, -04:00 GMT)
Closure date and time: Until the Petros of the first emission are exhausted


Incentives

An incentive system has been designed for investors who purchase Petro on a private sale basis and Initial Offering.
The plan is quite simple and involves scales of discounts (Dv ) from the initial lot. This first lot, which will be placed in the Pre-Sale, will have a volume of 3,400,000 Petro and will have a 30% discount on the reference price of crude oil in the Venezuelan basket. The following lots will have 5,000,000 Petro and the discount will decrease successively for each lot sold, until the last lot, of 24,000,000 Petro, which will have no discount.


Figures

The first lot is worth about (approx.) $204.000.000 USD.
The second (approx.) $300.000.000 USD.
The third (approx.) $1.440.000.000 USD.

I just updated the first post, it should be much more clear (i hope).

Sorry 30% (not 40%), my mistake.

From the White Paper (page 21):
This first lot, which will be placed in the Pre-Sale, will have a volume of 3,400,000 Petro and will have a 30% discount on the reference price of crude oil in the Venezuelan basket. The following lots will have 5,000,000 Petro and the discount will decrease successively for each lot sold, until the last lot, of 24,000,000 Petro, which will have no discount.

What makes you believe that somebody buying petro options with this contract will receive a discount of 40%?

Online, I would buy in Ethereum.

Anyway, even if you make the offer in dollars, this is more or less like a future contract. If you're interested you sign it and reserve your Petros. Or you can also wait to get more details, until mid March when the pre-sale ends.

I didn't say nobody. I said "nobody in his right mind and understanding anything about investment". I'm sure there are many people happy to sign something like this. Did you make an online offer or fill in and send in this contract?

1) Why? If they sell you Petros with a 40% discount on the oil barrel, and you are a speculator, you definitely want to buy (and that's why there were 170 thousand offers).

2) No, IT IS POSSIBLE to buy oil with Petros, this is the main reason of it! The national oil company PDVSA will accept Petros obviously (that's totally confirmed, and probably also other cryptos!).

3) Sure, Petro will be traded in the secondary market and obviously the market will decide its price. But depending on the exchange mechanism the government will offer, its price base could actually be the oil barrel (about 60$ at the moment).

Thanks for sharing the file.

I don't get why "nobody" would fill and sign that agreement if you want to buy Petros. Of course I'd do that without any problem. I want to buy Petros, therefore I'm ok with making an offer (which I did).

The price of the Petro is defined by the official Price of the Venezuelan oil barrel, and this price is published on the page of the Ministry (you can google it). At the moment it is around 58 $USD.

So even a speculator might find it best to take part in a secondary market rather then directly.   I believe most markets are set by the largest parties involved.  Thats why Im surprised its not possible to just buy oil with these tokens and then surely there is an immediate demand and it helps create an order book useful by business?

Free markets always set a price, I dont believe its possible to force a price as there is always an arbitrage effect that occurs.

happyminer, this takedown of the contract is outstanding. Would you like to help surface it for a more general audience, remaining anonymous if you want? You can also just say you're ok with rehashing the content and we'll write it up, crediting you on this thread. Please DM me.

Oh, they took it down. You didn't get it, because you expressed your "offer of intention to buy" (one of those 171.015 Maduro informed us about) in Ethereum and not in foreign currency.

For the moment it is still available in google cache. Search for "Oferta de Opción de Compra del criptoactivo".

You can also find it here: http://s000.tinyupload.com/?file_id=94401636341335571359

Please note: Nobody in his right mind and understanding anything about investment will fill in, sign and send in this document!

Power of Zeus: Russian Startup Helps Venezuela Issue Oil-Backed Cryptocurrency
https://sputniknews.com/science/201802271062048170-russian-startup-helps-venezuela-cryptocurrency

Like Hot Cakes: Almost 130 Countries Long for Venezuela's Oil-Backed Cryptocurrency
https://sputniknews.com/business/201802271062027915-130-countries-want-venezuela-cryptocurrency

US Senator Seeks to Crush Venezuela's Petro Cryptocurrency Amid Sanctions
https://sputniknews.com/world/201802261061987516-menendez-us-venezuela-petro

One in 2000: What Makes Venezuela's Petro Cryptocurrency Special
https://sputniknews.com/world/201802231061915556-venezuela-cryptocurrency-petro

It's a biased anti-Venezuelan obsession: the result of years of mainstream media brainwashing. Unfortunately the human being is quite stupid. They don't realise how their ignorance can destroy lives. Now the embargo is another possibility, and all this idiots will support it against the "dictatorship". Because, at the end of the day, nobody gives a shit about the Venezuelans, it's only a confirmation bias fed by hatred.

Petro needs to be introduced as fast as possible. But i hope that all this pressure will not add too many technical and security problems that could be fatal. If they succeed, people working on this project could literally be remembered as historical national heroes, of a new independence (crypto) war.

youtube is already full of videos talking shit about the Petro and telling others "do not buy".
why? isn't it supposed to be a shit coin? why so worry about the Petro coin then? lmao.
https://www.dailyrounds.org/blog/wp-content/uploads/2015/10/i-dont-know.jpg
they don't realise that they are making free publicity.
https://pbs.twimg.com/media/DAtElfUXcAIaT1B.jpg

[UPDATE] As of yesterday, according to a declaration from President Maduro, the offers were 171.000.

40.8% DOLLARS
6.5% EUROS
0.2% YUANS
33.8% BITCOIN
18.4% ETHER

Total users: 87.284
Companies: 3.523
Individuals: 83.761

[NEWS] Bloomberg reports that the US administration is evaluating the possibility of a total oil embargo against Venezuela.

Economic researcher on Latin America and Venezuela, Mark Weisbrot (@MarkWeisbrot) says this has never been done before, not even against Iraq, and that would be unimaginably devastating for the people.

I believe this would be a war crime of incredible proportions. The Petro could help even more, in case Venezuela was under embargo.

There is nothing at that address. Where are you supposed to get that file? I didn't get it when I did my offer.

Venezuela is in a deep economic crisis, that is not a "normal" recession. It was triggered by the 2014 oil price collapse and then made worse by US interventionism through sanctions and a large scale economic war.

Despite the economic crisis and the hyperinflation problem (that is largely fabricated from Miami and Colombia, investigate it if interested), the representation you get on mainstream media is a ridiculous caricature of the situation people actually live. The political goal of the whole operation is to justify a military intervention or a coup to overthrow the democratically elected government. The US did this dozens of times. But Venezuela is, unfortunately for them, quite ready. A coup they tried in 2002 failed and the army is quite hard to infiltrate now. They can attack through their puppet/proxy Colombia with terrorist attacks on the border.

The earlier the Petro arrives the stronger Venezuela will be in the global market and easier will be to recover, even with US sanctions.

I don’t understand why there isn’t any analysis of the contract the Venezuelan government want people to sign to acquire petros. It is quite impressive. You can find it online: http://elpetro.gob.ve/docs/OFERTA%20FINAL%205.pdf

Here then, my take at it.

One first point: This is a contract in which all obligations are assumed by the client, who wants to buy petro, while the partner (the SUPCACVEN) doesn’t assume any obligation through the contract. (SUPCACVEN is the “Venezuelan Superintendency of Cryptoassets and Related Activities” or “Superintendencia de los Criptoactivos y Actividades Conexas Venezolana” in Spanish.)

Another important point to note: It is a contract with the SUPCACVEN. The petro is released by SUPCACVEN and not the Central Bank, while according to the Venezuelan constitution the “monetary competence of National Authority shall necessarily be exercised exclusively by the Venezuelan Central Bank”. (According to the translation provided by the embassy of Venezuela in the US: http://www.embavenez-us.org/constitution/title_vi.htm.)

Let’s go through the details of the contract:

The sections 1.-3. make sense for such kind of contract: One is asked to provide information on the natural or judicial person wanting to buy petros (the “client”), information on the bank account and finally information on the employment of the client.

The section 4. contains the actual offer to buy petros. The client has to fill out two fields, one stating the currency he is going to use to buy petros and the other stating the amount (in that currency) he is going to offer. With the text around these fields the client affirms that he is making a formal and binding offer to buy any amount of petros up to the amount of foreign currency indicated by him at a (variable) closing price which will depend on the total amount of petros assigned and the buying offers received. There is no explanation at all (in the whole contract or anywhere else), how this closing price is going to be determined.

So just as an example: You might offer to buy petros for 100,000 US dollars. And you are contractually committed to accept that in the end you might receive 500 petros paying 50,000 US dollars. This wouldn’t go against the contract, because SUPCACVEN could always claim that the effective price of 100 US dollars was in some way dependent on the total assignment of petros and the total amount offered.

Section 5. contains space for the signature. With it the client commits himself to acquire the amount of petros assigned to him, gives the SUPCACVEN the right automatically to debit the corresponding amount in foreign currency in the client’s bank account and declares in lieu of an oath that the amount of currency indicated by him is available in his bank account.  

The next section is to be filled in by SUPCACVEN. Interesting is the first part of the section where SUPCACVEN is going to indicate which kind of product is approved here. This doesn’t make any sense in the context of the pre-sale of petros and shows (together with the next lines of this area) that the form is taken over from some other context. But it is interesting anyway, as there are only four possible choices for the product and only one suits the given context: In the pre-sale of the petro you acquire no stock option, no index option and no option on foreign currency. This leaves just one choice: Option on a debt instrument!

The next section, labeled “6.”, contains the terms of the offer. All 12 are interesting, but let’s take up just a selection and this selection only in part:

2. The client explicitly accepts that SUPCACVEN doesn’t guarantee the final price of the option.

3. In case that the the client’s account doesn’t contain the amount of foreign currency finally accepted by SUPCACVEN the client is liable to penal and civil sanctions.

6. The signing and handing in of the contract through the client doesn’t result in any obligation on the side of SUPCACVEN, given that the assignation will depend on an appraisal of the client according to “objective” criteria at the discretion of the national government.

8. The client has received and read all the publications of SUPCACVEN (does this include all its tweets?) and also the most current risk discloser document of the "option". (Such a document wasn’t made public, nobody can have read it.)

11. The client accepts that the resolution of all disputes falls under Venezuelan jurisdiction and
only and exclusively Venezuelan law applies. (As there is no independent judiciary in Venezuela this means that there is no way whatsoever to recover your investment in court.)

12. Disclosure of the contract or parts of it by the client of the contract results in its immediate annulment, and is liable to civil and penal sanctions according to Venezuelan law. (This is funny, as this is a contract to be signed by thousands of people and you can find it through google. But it demonstrates well the lack of transparency around the the launch of the petro.)

Learn how media works. Follow the money. I read everything and that's irrelevant as I said in previous posts. But you can keep repeating this "backing" thing over and over again, it's fine.

The Petro is potentially valuable for tons of other reasons too, even if it wasn't backed at all.