Venezuelan government launches NFT on Ethereum and is already trading at 7 ETH

Key facts:
  • The token was offered at a starting price of 10 ETH and ended up selling for 0.25 ETH.

  • On the same day of its sale, the token changed hands four times.

The Government of Venezuela continues its moves in the world of cryptoassets, this time with the launch of a non-fungible token (NFT). With the collectible on the Ethereum network they seek to commemorate the 200 years of the Battle of Carabobo, a historical fact that marked the culmination of the war in Venezuela in search of its independence from the Spanish crown.

The announcement it was done by Venezuela’s national superintendent of Cryptoassets (SUNACRIP), Joselit Ramirez, on his Twitter account. ” We have immortalized in blockchain technology our first NFT, ratifying today 200 years later the victory achieved by the Liberator Simón Bolívar, ” he wrote.

Accompanying the message on the social network of the Venezuelan official, you can see the image of the Non-Fungible Token. There it is reflected a design with the colors of the Venezuelan flag, in which Simón Bolívar is represented on his horse and what resembles the map of South America, accompanied by the number 200.

The Sunacrip NFT shows Simon Bolivar on a horse with a body from South America. Source: Rarible.

How was the sale?

The token was listed last June 24 in the marketplace based on Ethereum, Rarible. It was coined by an account called Advisor or Advisor, belonging to a person called Mr. Liuhuabing, from whom no further information was obtained on his link with the National Superintendency of Cryptoassets.

As you can see in the history section of the token in Rarible, it was offered at an initial price of 10 ETH, and then lowered its price to 1 ETH, 0.5 ETH and finally 0.25 ETH, price with which he obtained his first purchase by an anonymous user.

The price of the NFT was lowered three times to get a buyer. Source: Rarible.

This account does not record any more transaction history on Rarible, so it could be assumed that it was created with a view to purchasing this NFT. But 8 hours after acquired, he accepted an offer of 1 Wrapped ether or wrapped ether (a tokenized version of the same ETH) by another anonymous user.

This second buyer increased the price to 2.54 ETH and then to 5.154 ETH, price at which he managed to sell it to a third user, only to buy it again at a price of 6 ETH. This has been the last registered purchase of the NFT, which is again offered by its second buyer at a price of 7.12 ethers, equivalent to USD 15,000, at the time of writing. From June 25 at 20: 09 pm, the NFT does not record new interactions.

It should be noted that the account of the advisor who coined the NFT receives a 10% royalty for each exchange that is made of the token. In that sense, to the 0.25 ETH received by the first purchase, 1.2154 ethers are added between the three subsequent exchanges, accumulating a total profit equivalent to 1.4654 ETH or 3,119 USD.

With the launch of the NFT questions have arisen on some Twitter users. One of them, focused on where income will go for the sale of the token, as the SUNACRIP is a state body.

Government adopts NFT while the petro gives no answers

It is worth remembering that in the South American nation, in December 2017, a project of a cryptocurrency called petro (PTR), to alleviate the country’s economic crisis.

The backing the currency would be oil reserves, gas, gold and diamonds of the country, as reported by CriptoNoticias.

However, Venezuela recorded in December 2020 a 96% of poverty in its population, a contraction of the Gross Domestic Product(GDP) of more than 70% in seven years and accumulated inflation in the last 12 months of 4,000%.

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