VeChain VET | Ready for New High

VeChain
Credit: Google Pics

The cryptocurrency sector is a difficult one to crack. It’s tough to forecast the future of a crypto project that doesn’t yet have a real-world application. This post was written with this in mind. I’m going to talk about a coin that has a real-world use case and a lot of potentials.

Today’s topic is the VeChain VET token, a cryptocurrency. I’ll discuss its Use Case, as well as its merits and limitations.

What is VeChain

VeChain is a blockchain project which was founded in the year 2015 by Sunny Lu.  He founded VeChain with a primary goal in mind to improve supply chain efficiency. VeChain uses Distributed Ledger Technology (DLT) to allow customers and retailers to verify the authenticity and quality of things being bought.

Sunny Lu.
Credit: Google Pic | The Coin Republic

Vet Coin

VET is VeChain’s utility token, or smart money if you will. The governance part of the VET token is one of the most important characteristics. The token is used for storing information, transferring money, and other related tasks.

It helps in the maintenance and security of the network, as well as serving as Smart Money for decentralized applications and facilitating transactions amongst DAPPS.

VET and VTHO The two tokens of VeChain

Another token is VTHO, which stands for V-T-H-O. Now there’s a VET token and a VTHO token. Both have different use case. When we talk about VeChain, many investors are confused about these two tokens.

To make things easier, I’ve put together a quick table that compares the VET token and VTHO, as well as their real use cases and future predictions. So, before we move on to the next topics, have a quick glance at this table.

VET and VTOH token table

As a result, I’m comparing VET and VTHO using the basic guidelines. The first is the primary use case. As a result, vocational education and training (VET) is used for governance and value transfer. On the other side, VTHO is used to pay the gas fee.

Second, the total supply of VET is 86.7 billion units, whereas the supply of VTHO is infinite. That’s reasonable because it’s used to pay the network’s gas fee.

The next contrast is volatility, which is quite high in VET and very low in VTHO. Then there’s the store of value. In comparison to VTHO, which is only a token used to pay for the gas fee, VET is a great store of value.

As a result, I do not believe it is a good store of value, and its supply is unlimited. The third and final factor to consider is the possibility of a price increase.

When these two tokens are compared, it is clear that VET has a higher chance of price appreciation than VTHO, which is only used to pay for the gas fee and so has a lower chance of price appreciation.

How does VeChain work?

As a result, VeChain focuses on a proof of authority consensus mechanism with a 101 trusted list of validators.

Each validator now has a condition, which is that in order to become a validator, you must own a total of 1 million VET tokens, and simply holding VET tokens is not enough.

If you want to be a validator, you must reveal your identity, and once you’ve revealed your identity and met the criteria, it’s up to the VET team, the VeChain team, to decide whether or not you should be a validator.

Based on proof of authority and validators who hold 1 million VET tokens and are willing to reveal their identities. That’s how VeChain works from a technological standpoint.

 VeChain VET crypto ICO 

After that, I’ll walk you through the VeChain Initial Coin Offering (ICO). So, in 2017, VeChain held an initial coin offering (ICO) and raised a total of $200,000 (two lakhs Ethereum) by selling each token at a price of $0.0008.

There is one thing to keep in mind: at the time of the VeChain VET token’s launch, it was not actually VET token. It was the VEN token, which is V-E-N. As a result, VeChain was built on top of the Ethereum blockchain before moving to its own.

VEN was a VeChain ERC20 token before switching to its own blockchain and becoming the VET token.

VeChain’s Benefits and Drawback

The first and most important benefit of VeChain is the real-world use case. It’s one of the few cryptocurrency initiatives with a practical application. VeChain blockchain technology has been used by a number of companies to improve supply chain management.

There are relatively few projects with a real-world use case, such as Brave Browser BAT coin, which has a BAT token and, like VeChain, has a real-world use case but with a different set of purposes.

The first-mover advantage is the next benefit. VeChain has developed as one of the few projects dedicated entirely to supply chain management. VeChain has no competitors in its area, particularly in the crypto business, who can equal or compete with it.

The third and most essential benefit of VeChain’s is Strategic collaborations. It has been able to form strategic alliances with major companies in the mainstream sectors. Walmart, BMW, PwC, and Louis Vuitton are among the top partnerships.

Now we’ll look at the project’s drawbacks. Of course, there are advantages, but there are also some disadvantages to this project. The first is competition from mainstream businesses.

So, whereas other companies, such as IBM and SAP, are established market leaders in supply chain management, VeChain is simply a late starter.

In fact, IBM is working with Maersk, the world’s largest shipping company. It is collaborating with major organizations and developing its own supply chain system, which might pose a threat to VeChain’s growth as a supply chain startup.

The second disadvantage is China’s ban on cryptocurrency. VeChain is based in China, and anyone who wants to be a part of the VeChain blockchain’s full potential must hold VET tokens.

This makes it more difficult for companies to hold cryptocurrencies and use their technologies. While cryptocurrencies are prohibited in the world’s most populous country, China.

The next drawback could be a lack of global acceptance. Due to the outbreak of the pandemic, VeChain adoption has slowed, and there is less need for blockchain technology, particularly in supply chain management. As a result, people and companies prefer to stick with old methods rather than try some new technologies.

VeChain VET price prediction

VeChain’s price forecast. As a result, VeChain has seen a lot of growth in the last bull run of 2021. It has risen to a level above $0.20, and at the time of writing, it is already trading in the $0.10 to $0.15 range.

Now, as you can see on the screen with this chart, it’s evident that VeChain has a lot of capacity to grow in the coming bull market. So, given the price activity, I wouldn’t be surprised if VeChain was able to reach at least $1 in the approaching bull run.

VeChain Price Chart

On the positive side, it has the potential to cross the $2 mark, but this is a far-fetched figure. Because, in my opinion, the VET token is not particularly volatile. It may be able to cross the $1 mark as a result of this. As a result, I reserve my price estimate for the range of $0.80 to $0.90 at most.

Is the VeChain VET token a good investment?

VeChain has a real-world use case. It’s a cryptocurrency that’s already been launched into the market and is functioning well. Behind the VeChain corporation, there is no hidden structure.

The company is dependable and trustworthy. If somebody wants to invest in this coin, they should be confident that the project will last for a long time.

Because Vechain is up against a lot of competition. However, this allows more scope for growth. You can put your money into the token if you believe the blockchain project has the ability to transform supply chain management and bring more efficiencies to the system.

What is your opinion on the subject? Do you want to learn more about this cryptocurrency? Please let me know in the comments section. This concludes my in-depth analysis of the VeChain VET Token. Thank you.

 

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