As of Friday morning, May 21, VeChain had fallen to $0.1328 cents per token. As of Sunday afternoon EST on the 23rd, the token was $0.0787, a nearly 69% drop in price.
This is way off of its recent highs at 27.8 cents in mid-April. However, this altcoin has a good chance of doing very well the rest of the year. This is an amazing performance, and I suspect it foreshadows a good future for the crypto, so long as the price remain at key levels. Let’s review VeChain’s focus.
VeChain’s focus as a blockchain platform and related cryptocurrency is on corporate businesses supply chain and logistics. Its main purpose, is to improve the management of supply chains and related business processes. For example, a number of large enterprises now use VeChain for inventory tracking purposes.
This is accomplished in that VeChain works by giving physical products a unique identity, usually through RFID (radio frequency identification, QR Codes, or near-field communication. Sensors record information at every stage of the supply chain, and are recorded and linked to the product’s identity. Given this is done using blockchain technology, at every point in the supply chain process, the record of tracking inventory en-route is recorded to the blockchain, the data recorded in the block it is written to is unable to be changed.
This allows the receiver and deliverer of goods to check that everything was handled correctly, items are authentic, and no fraud is occurring while goods are en-route to the products destination.
VeChain’s partnership list has grown consistently in 2020 into 2021, with partnerships with large companies such as SalesForce, PWC, Amazon AWS, and BMW. Their partnerships span globally, and the company has a solid leadership team that is ensuring that the company stays relevant. A Norwegian classification company called DNV has partnered with VeChain. It provides tracking services for 13,175 vessels and mobile offshore units.
The addressable market for VeChain’s area of focus could turn out to be quite large. A study from 2020 concluded that $300 billion worth of food could be tracked and traced on the blockchain by 2027.
VeChain has a proof-of-authority protocol system. This is an offshoot of the proof-of-stake system. As a result of its dual token supply structure, the total supply of tokens is slightly inflationary.
Benefit of Holding VeChain
Another perk of VeChain is that it pays to be a holder via an “offshoot coin” called THOR, or VeThor (VTHO-USD) is paid to every holder of VET tokens. VET owners receive roughly 0.000432 VTHO tokens daily per VET token as of this writing.
Sunny Lu created VeChain in 2015, and he remains the CEO of the VeChain Foundation, based in Singapore. Prior to this, he co-founded the Chinese internet firm Qtum, another digital crypto asset. He was previously the CIO and COO of Louis Vuitton China. VeChain has over 90 employees, mostly software developers.
In late 2019, the VeChain Foundation’s wallet was hacked, and 1.1 billion VET tokens were stolen, which at the time were worth $6.53 million. The stolen tokens were tracked by the foundation using a software program from cybersecurity firm Hacken. It also had exchanges blacklist the addresses associated with the hacker who stole the VeChain tokens.
VeChain does not use mining. It uses a “proof of authority” consensus system to validate transactions. This is where a group of “masternodes” validate all transactions. They are selected by the VeChain Foundation and the VeChain community after Know Your Customer (KYC) processes.
As more companies begin to use the VeChain blockchain to monitor their supply and inventory channels, the VET tokens will become prolifically more popular.
Look for VeChain to regain its former heights sometime in the next year. As a result, this crypto looks like a good buy at this point with its price well off its highs.