Signal Capital Management has launched a cryptocurrency ‘Petrodollars’ backed by oil and gas reserves.
Its initial coin offering is expected to take place in late 2018.
Signal Capital Management, a New York based investment and holdings company, have launched a cryptocurrency backed by oil and gas reserves in what it says is the “world’s first globally compliant” oil-backed digital currency.
The digital currency, ‘PetroDollars’, will be backed by the underlying value of reserves of crude oil and equivalents such as natural gas and condensates, and related assets.
PetroDollars-“a globally compliant digital reserve currency” as its proponents bill it-is undergoing a regulatory-compliant private placement of PetroDollars tokens to accredited U.S. aye nd foreign investors, Signal Capital Management says.
A global initial coin offering (ICO) is expected to take place in late 2018 and to be up to $700 million in size, one of the largest ICOs to date, according to Signal Capital Management.
After the ICO, “each of the projected PetroDollars tokens in circulation in the year following the ICO will be backed by more than 10 barrels of oil equivalent of proved, probable, and possible recoverable oil and gas reserves, certified by a third party independent petroleum engineering firm,” said the firm launching the new cryptocurrency.
According to its creators, PetroDollars is expected to be in the top 20 cryptocurrencies by total market value. It will be exchangeable for major world currencies and other cryptocurrencies. PetroDollars tokens will be nominally hard-capped at 500 million tokens.