Are there cryptocurrencies backed by oil, whose price replicates the value of a barrel in order to allow investing in this asset within the crypto markets?
The answer to this question is complex.
First of all, it must be said that to date there is no decentralized token that allows speculating on the price of oil.
There is a project underway, initially called PetroDollars and now renamed PDX Coin, which was supposed to land on the markets with an ICO in 2018, but which after changing its name was postponed until the summer of 2020.
The objective of this project would be to create a digital currency backed by oil and gas reserves, but to date, it is still only a concept.
There is another token, already tradable on YoBit, called PetroDollar (XPD), but whose value does not seem to be linked at all to that of oil, in fact, it is very volatile.
For example, in January 2018 it was worth almost ten cents of a dollar, only to collapse to half a cent in August of the same year, with a loss in value of over 90%.
Petro as an oil-backed crypto
To date, the only digital currency officially backed by oil is the Venezuelan Petro, which however is not a cryptocurrency, has no public blockchain and is not tradable on any crypto exchange.
Indeed, Petro does not even have a public price, other than the totally arbitrary one provided by the Venezuelan government, hence it cannot be used to make crypto investments in oil, nor is there any real certainty that its true market value corresponds to that of a barrel of oil.
Many believe that Petro is only a fiat currency just like the hyperinflationary Venezuelan Bolivar, which means that regardless of the government narrative that is being put in place to bring it to the public’s attention, it should not be considered an oil-backed cryptocurrency.
The only serious project in this direction would seem to be that of Russia, which last year, through former energy minister Igor Yusufov, announced that it was in the final stages of issuing an oil-backed cryptocurrency.
The idea was to use it effectively for buying and selling oil, so as to circumvent international sanctions and restrictions, for example against Iran or Venezuela itself, but the project apparently never came to fruition.
The digital currency was supposed to be called Neft-Coin, but to date, there is no trace of its development progress.
It is possible, however, that after a thorough and in-depth evaluation of the real feasibility, they realized that the difficulties involved and the problems to be solved were too difficult to be able to achieve something truly useful and fungible.
As a result, there is still no oil-backed cryptocurrency or token on the crypto markets that would allow investment in this asset, despite a few attempts.
The failure of all these attempts seems to reveal that such a solution is still too difficult to implement safely.