Tanya Abrosimova
Independent Analyst
- Petro receives low ratings for lack of transparency.
- US sanctions and bad reputation of the issuer makes things even worse for Petro.
Venezuelan Petro's ICO has been live for about two weeks now, but the project raises many questions both from regulators and potential investors. Considering vague nature of the project and lack of transparency, many sites offering ICO ratings called it a scam and recommended traders to steer clear of it.
"The Team behind Petro was involved in the previous scam - Bolivar, which inflated thousand of %. It caused an economic crisis in Venezuela and shortage of barely anything. It also led to the huge growth of criminality. There are many pieces of evidence of corrupted behavior." - ICOindex.com explains the decision to label Petro as a scam.
ICOindex team says that the ICO organizers failed to provide essential information including the description of the technology and operational mechanism. Petro is supposed to be backed by Venezuelan natural resources, but it is not clear how Petro is linked to oil, diamonds and other commodities.
ICObench rated Petro 1.6 out of 5 due to missing data about the team, no KYC confirmation, and other critical deficiencies.
US President Donald Trump extended sanctions against Venezuela by prohibiting Petro in the US. It means that American citizens are banned from buying this cryptocurrency either during ICO or on the secondary market.
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