Crypto Assets Named Bolsonaro and Lula Shipwreck – June 10, 2022 – Markets

Crypto Assets Named Bolsonaro and Lula Shipwreck – June 10, 2022 – Markets

The crypto-assets betting on the popularity of candidates Jair Bolsonaro (PL) and Luiz Inácio Lula da Silva (PT) have not taken off in a bid to cash in on the polarisation of the 2022 presidential election.

Lulacoin, Lula 2022, BolsoLula, Mitocoin, Mito22 and Bonoro Mitocoin 2022 are some of the assets on the exchange. All motionless.

Some were launched on the exchange more than a year ago, but all eight projects were sheet or are currently inactive or have insignificant movements.

Compared to the most well-known virtual currencies such as Bitcoin and Ethereum, these assets are of much lower quality, assets named in honor of Lula and Bolsonaro are placed in the shetcois (nonsense, free translation) On the shelf, the term is used to replicate other items, has security holes and can never be used to exchange relationships.

This largely explains the lack of public interest in these assets, said Paulo Aragão, founder of CriptoFácil, a content platform specializing in the industry. “The projects were so bad that they didn’t get involved and ended up dying,” he said.

Founded more than a year ago and held by 141 investors, BolsonaroCoin has recorded only one movement in the past two days related to the consultation in this Thursday(9) report. This compares to an estimated 81 million users of the world’s most popular crypto asset, Bitcoin.

The most important items are sheet It is a futures contract based on NFT, NFT is an acronym for non-fungible token, betting on the victory or defeat of Bolsonaro of American brokerage FTX against Lula.

In this case, the contract is actually like a bet. Stakeholders can operate for the long term, meaning Bolsonaro wins, or sells, making money if the incumbent loses to PT.

Despite the company’s relevance in this field (one of the largest in the world), the product for the Brazilian election has lost value since its creation last year and currently has almost zero turnover.

When launched by FTX last May, the plateau-focused token had a unit value of $1 (4.88 reais). It is now worth $0.28 (R$ 1.37).

In the last 24 hours before the consultation, the trading volume was $2 (R$ 9.77). Aragão commented: “This is a project that is clearly at a standstill, and anyone with $100 in their hands is still completely manipulating that amount”.

One industry manager believes the lack of another name competing for the Republican presidency in the FTX product is a result of the company’s approach since Donald Trump’s re-election bid, arguing that he cannot cite the electoral position in line with his agency’s strategy. Candidate’s name is published in the article.

“The stakes are always against or for the candidate in power,” he said. “It’s a model closer to the U.S. election.”

The same manager believes that the lack of interest in such contracts is also related to the profiles of the candidates, since none of them have publicly taken stances in favor of cryptocurrencies and thus will not attract enthusiasts of these investments.

“Furthermore, this market is currently in a trough,” he commented. “Therefore, there is no reason for one to stop trading Bitcoin, such as investing in a purely speculative asset.”

Experts who spoke with Folha said none of the crypto assets identified in the report had any official relationship with the candidate.

Um dos ativos, a Bolsonarocoin22, é descrito em seu perfil no Twitter como um “token NFT criado para fins sociais e ajuda humanitária, bem como para os apoiadores e simpatizantes do Presidente Bolsonaro”.

Even if the creator proposes to support one of the candidates, the election legislation does not allow for fundraising or payment of campaign expenses through virtual currency, explained Flavio Willerman, a lawyer for the former judge of the TRE-RJ (Tribunal Regional Election Commission in Rio de Janeiro).

“It is impossible to create virtual currencies because the EU has the exclusive competence to develop financial laws,” Willeman explained.

He stressed that voters should not confuse the ban with virtual crowdfunding, which is legal and aims to collect donations from individuals through internet platforms.

Encryption… what?Learn what is cryptocurrency

Tokens, in computer languages, are a technique for creating code by ordering symbols, such as letters. This allows you to create a password and link it to the electronic file.

Encoding guarantees the authenticity of files sold over the Internet. This makes it unique and potentially valuable.

The name cryptoactive is used because it employs the principles of cryptography. The same logic used by the block-of-code (blockchain) technology that guarantees the security of virtual currencies.

Purists don’t always like to refer to any type of asset using blockchain technology as virtual currency, because they believe that being a currency, other properties must be gathered, such as being widely used as a means of payment.

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