Depreciation and death of Lulacoin, Mitocoin and other ‘polarized’ crypto assets

Depreciation and death of Lulacoin, Mitocoin and other ‘polarized’ crypto assets

Photo: Paulo Pinto / Archivo / PT
Former President Lula June 10, 2022 | 12:13

Depreciation and death of Lulacoin, Mitocoin and other ‘polarized’ crypto assets

Designed to make money on the polarization of the 2022 presidential election, the crypto assets that bet on the popularity of the candidates Jair Bolsonaro (PL) and Luiz Inसcio Lula da Silva (PT) did not come down.

Some of the assets found on the trading platforms are Lulacoin, Lula 2022, BolsoLula, Mitocoin, Mito22 and Bonoro Mitocoin 2022. All motionless.

Some were launched on marketing platforms a year ago, but all eight projects identified by Folha are either dormant or trivial at the moment.

Much lower than the well-known virtual currencies like Bitcoin and Ethereum, the property named in honor of Lula and Bolsonaro is on the shelf of shitcois (nonsense coins, free translation), the jargon is used for copies of others. Projects, with security flaws and they can never be used in exchange relationships.

According to Paulo Arago, founder of Cryptophasil, the lack of public interest in the property is largely due to the exclusive content platform in the area. “Projects are so bad they don’t work and die,” he said.

Created just over a year ago and in the hands of 141 investors, BolsonaroCoin reported only one movement in the last two days in relation to the consultation conducted by this Thursday (9) report.

The most important project Folha mined was the NFT-based futures contract, an acronym for Non-Fungible Token, which bets on Bolsonaro’s victory or defeat against Lula, owned by American brokerage FTX.

In this case, the agreement literally works like a pledge. The interested party can run for a long time, which means winning with Bolsonaro’s victory, or making money by selling, if the incumbent PT loses the dispute.

Despite the company’s relevance in this segment, one of the world’s largest, Brazilian election-targeted products has lost value since last year’s production and has almost zero turnover at the moment.

When FTX launched in May last year, the unit price of the token focused on the run for the plateau was US $ 1 (R $ 4.88). It is now priced at US $ 0.28 (R $ 1.37).

In the last 24 hours before the consultation, the volume traded for US $ 2 (R $ 9.77). “It’s a project that’s clearly stalled, anyone with a hundred dollars in their hands is still fully managing the amount,” Arago commented.

The absence of other names competing for the presidency of the Republic in FTX products is a result of the company’s approach since the re-election of Donald Trump, an industry manager said. The name has been published in articles mentioning candidates for selected posts.

He said, “Betting is done for or against the candidate in power.” “It’s more of a model than an election in the United States.”

The same manager believes that the lack of interest in this type of agreement is also related to the profile of the candidates, as none of them openly positions on the side of cryptocurrency and, therefore, does not attract the enthusiasts of this investment.

“In addition, the market is currently operating at a low point,” he commented. “So there is no reason for a person to stop trading Bitcoin, for example, by investing entirely in speculative assets.”

Experts who spoke to Folha say any of the crypto assets identified by the report have no official relationship with the candidates.

One of the two activities, the Bolsonarocoin22, is based on his profile on Twitter as a “NFT token created for social and financial support, as well as for Bolsonaro’s supporters and facilitators”.

Although the manufacturer has proposed to support one of the candidates, the election law does not allow raising funds or campaign expenses from virtual currencies, explains lawyer Flavio Williamson, a former judge of the TRE-RJ (Tribunal Regional Electoral Council of Rio de Janeiro).

“The union’s unique ability to legislate on financial law does not make it possible to create virtual currency,” Williman explains. Voters should not confuse the ban with virtual crowdfunding, which is legal and intended to collect donations from individuals through Internet platforms, he said.

Crypto What? Understand what a cryptoactive is
Token, in computer parlance, is a technology that generates code by sequencing symbols (such as letters, for example). This allows you to create a kind of password and link it to an electronic file.

Encoding guarantees the authenticity of a file sold on the Internet. This makes it unique and potentially valuable.

The name cryptoactive is used because it adopts the principle of cryptography. This is the same logic used by Chaining Code Blocks (Blockchain) technology to guarantee the security of virtual currencies.

Purists do not always like to call any type of asset that uses blockchain technology a virtual currency, as they believe that other properties must be collected in order to become a currency, such as being widely used as a means of payment.

Clayton Castellani / Folhapress

Leave a Comment

Your email address will not be published.