VeChain is a cryptocurrency that you may not have previously known to exist. There are so many altcoins to choose from nowadays, making it nearly impossible to be informed of all the possibilities unless you’re an avid or a loyal supporter. I’m not one of those people. Instead, I like looking at stocks through fundamental analysis.
This is indeed an interesting event. However, it’s not necessarily a good motive to invest in stocks or cryptocurrency, nor (to be more precise) make predictions about this VET token. To help us do our due diligence, I’ve put together five important facts you must be aware of regarding VeChain in the coming days.
Here’s what you should have you’re looking for about VeChain facts along with its tokens.
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VeChain Facts| What is VeChain?
When it comes to an understanding of what VeChain is, I’ve come across two major descriptions that might be useful. Of course, there’s an analysis whitepaper that provides all the specifics. After doing some investigation, I came across the following overview of Investopedia, which is equally informative.
“VeChain is a blockchain-based platform created to improve the management of supply chains along with the business process. It aims to simplify the flow of information and processes for complex supply chains using DLT, or distributed ledger technology (DLT).”
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Like that, CoinMarketCap also mentions that “VeChain intends to make use of shared governance and Internet of Things (IoT) technology to build an ecosystem that solves many of the biggest issues in supply chain management. The goal is to improve efficiency and traceability and transparency while decreasing costs and putting more control over individuals who use the system.”
The VeChain whitepaper provides the following information about the cryptocurrency’s blockchain: “VeChainThor is a public blockchain designed to facilitate widespread acceptance of Blockchain technology among commercial users of any size. It’s intended to serve as the base to create a sustainable and sustainable Blockchain for business.”
The essential thing to be aware of is this: the blockchain itself is designed towards business and specifically in the supply chain. The tokens? They’re the base for the facilitation.
The price stats for VeChain’s VeChain
Now that we understand what VeChain does and does not do, It’s probably best to know what’s been taking place about the VET token’s price. VET cryptocurrency’s value.
At the time of opening in June. 29 VET was trading at around 7.9 cents. This crypto’s rapid price increase occurred at the end of December, valued at approximately 1.7 cents. In a parabolic swoop that’s now becoming a common feature of altcoins, its price was up to 25 cents in late April. Since then, however, the price has slowed and taken down to its current price.
Naturally, this increased volatility underscores the high risk of investing in cryptocurrency markets. But is this wildly rumbling rally and the massive drop in prices due to speculation? There’s currently nothing to think otherwise. However, there could be some things to think about Vechain.
As per CoinMarketCap, VeChain is currently placed 22nd among cryptos, with a market cap at $5.9 million. The current VET supply is less than 64 billion; this means that the present total of VET USD tokens is approximately 74% of the possible supply.
A Derivative Derivative 2nd Token
What’s better than purchasing a cryptocurrency token? If you said “huge gains,” I can understand this is the ultimate goal. However, for the moment, we need to be more sensible. Another advantage of using VET-USD is you don’t just get one token; however, you get two.
What is the solution?
I was skeptical of initially, but the VeChain whitepaper describes the process of generating VTHO in the clearest way possible:
“The VeChainThor blockchain economic model regulates VeThor Token (VTHO) creation by using VeChain Tokens (VET), which is an estimate of demand and supply for VTHO. Then, VTHO is generated via holding VET at a high velocity. This is designed to permit anyone who holds VET to perform transactions without cost if the user has the tokens long enough.”
I realize I know it’s difficult to understand. However, there’s more. The whitepaper goes on:
“Based on an analysis of the VTHO Generation Model, we can estimate the supply and demand for VTHO for any given day. Demand for VTHO originates through smart contracts execution as well as payments. To maintain the stability of the transaction cost in fiat and maintain the equilibrium of supply and demand of VTHO, the Foundation is constantly monitoring the market and calculates the demand for VTHO from the activity of the applications that run using the VeChainThor blockchain and token transmissions.”
The whitepaper is much more. What we’ve got there is a derivate of a product, the VeThor token that is created by VET tokens. This relationship will add some interest to the ecosystem overall.
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But, this system asks the question: does this suggest that VET is more of a security than an actual currency? Due to this complexity, I can see that the U.S. Securities and Exchange Commission (SEC) has some work to complete. My view is that securities classification would imply that future regulations will be needed. However, it will be interesting to see when this will be the case with VeChain.
There is no proof of stake or Proof of Work.
We’ve already covered certain aspects associated with VeChain, which could double as swords. There is a distinct feature that could be interesting and could be useful.
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What exactly am I talking about? The VeChain ecosystem doesn’t use an asymmetric proof-of-work or proof-of-stake system as other cryptos do. It instead goes far beyond the norm by utilizing a “proof-of-authority” method. Binance Academy describes this type of system clearly:
“Proof of Authority (PoA) is a consensus algorithm based on the reputation that provides an efficient and practical alternative for the blockchain (especially those that are private.) The PoA consensus algorithm is based on the power of identity, meaning block validators aren’t investing in coins but their reputation. Thus, PoA blockchains are protected by validating nodes which are randomly selected as trustworthy organizations.”
One of the main advantages of this PoA system is its ability to scale up, privacy protection, and “a cost-effective and sensible solution” for applications in business, such as supply chains.
Vision and Partnerships Vision and the Partnerships
However, the most important thing you need to know about this blockchain and cryptocurrency is the concept.
VeChain is about lowering entry barriers and enabling companies to use blockchain technology to solve real-world economic issues. Instead of decentralized financial services, it’s all about open finance (DeFi). VeChain provides a wide range of ecosystems that includes a variety of builders, from communities and enterprises to establishments, regulators, startups, and much more.
The cases of use in this section are exciting and creative. From transparent supply chains for food products and solutions to combat counterfeiting and much more, VeChain is about building trust and efficiency. Today, there’s a growing VeChain’s business partnerships worldwide, with large names like BMW (OTCMKTS: BMWYY) and Renault (OTCMKTS: RNLSY).
In the end, there is really good momentum in this area.
Verdict on VeChain Verdict on VeChain
When it comes to it, I view the majority of cryptocurrencies as highly speculative and have no intrinsic value. However, the balance between supply and demand will ultimately determine the value, or more precisely, the value — or rather, the price of VET-USD.
Are the prices currently too low? It’s hard to say. Is it possible to move up? Maybe. The idea of predicting what’s going to take place next is like the equivalent of a coin toss. We don’t know what the cost will be in the next couple of months or even years.
There are some compelling elements in this application. I am impressed by the business model and the vision and value. I believe that VeChain’s major partners have found something worth mentioning in the project. VeChain is certainly something you should keep an eye on.