In the present cryptocurrency industry, there are so many crypto projects that even investors can feel overwhelmed, especially newbies. We will be talking about one of the budding crypto projects that have been gaining ground recently.
How good an investment is VeChain? To know that, it is imperative that we understand what is the project about and the value that it adds to the crypto space and the industry at large.
One thing about VeChain is that the crypto is based on a functioning product that has practical uses in the real world. That makes it one of the few projects that can boast this feature. In other words, VeChain is geared towards the supply chain and logistics. That means products can be tracked through the VeChain network.
This is important in a global supply chain that is fragmented and distributed all over the world. VeChain provides the needed infrastructure to effectively track products via blockchain technology.
Understanding VeChain: Why Is It a Good Investment?
When we talk about the pioneers of the enterprise-level clientele facing blockchain network then VeChain is among them. The aim of the development team of VeChain is to use blockchain technology to provide improved product lifecycle management and supply chain. So, the VeChain network provides the right features that make it easy for enterprises to bring improvement to their business and supply chain processes.
The problem facing the supply and logistics industry today is what we can call an uneven data problem in which information collected is not disseminated appropriately and optimally. The reliance on a centralized source of information in a severely segmented industry results in the delay of data communication. This is also characterized by the lack of transparency in disseminating this information.
With the VeChain protocol, what companies get is the capacity to keep track of a huge amount of information in their logistics and supply line. This can cover the status of transportation, quality of the product, storage temperature, and the authenticity of the goods. All this is done by VeChain in a decentralized and trust-free business environment. As a result, the overhead is reduced for the businesses, and accountability is improved.
What Makes VeChain Different?
There is something unique about the VeChain network in the sense that the protocol is not fully decentralized. The creators of the project have made this clear from the genesis of the project. However, their focus is to bring about the best of both centralized finance (CeFi) and decentralized finance (DeFi). This unique setting is chosen to offer a balanced stage that can host businesses and offer them high-speed transactions, transparent flow of data, and effective collaboration.
The supply chain sector has traditionally not seen much change for years now. VeChain aims to change by disrupting the sector. By leveraging the transparency that blockchain brings, VeChain introduces improved security and efficiency to the supply chain, as well as bringing down the cost via trust-free automation and easy product tracking. This model on display by VeChain looks appealing to several businesses and that is evident in the number of big businesses that the project has brought on board.
Furthermore, the uniqueness of VeChain lies in its dual-chain token usage. We also have other features that bring allure to the project like staking rewards.
Historical Background of the VeChain Protocol
When coming out in 2015, the founder of VeChain Sunny Lu had the aim of changing the supply chain and logistics sector through transparent and actionable data. It could be said that he found his inspiration due to the years of having to deal with the problems in supply chain lines due to his time as Louis Vuitton China executive work.
Like most projects, VeChain started on the Ethereum network before developing and moving to their blockchain. Sunny Lu is not the only one deep in the project, as there are other notable names involved. His co-founder, Jay Zhang, has previous work experience with PWC and Deloitte. Through the VeChain project, both have become popular names in the crypto space.
Over time, the project has evolved from the time it was formally launched in 2016 to be one of the oldest blockchains in the market targeting the supply chain.
The Dual Token System: VET and VTHO Tokens
As we discussed one of the selling points of the VeChain to investors will be its dual-token system. That means that the VeChain has two tokens, namely VTHO and VET, which help to prevent network congestion and fee fluctuations. VTHO is used for fee payments functioning as the gas token just as we have in Ethereum with Ether. The token for transactions is VET, which is also used for other activities on the network like staking.
Holding VET can also earn you a little amount of VTHO passively at the same time about 70% of the VTHO generated in VET payment is burned. The generation of VTHO depends on the VET holdings and the total supply of VET is fixed at 86,712,634,466 tokens.
To achieve optimum security while utilizing little resources, VET uses a proof-of-stake mechanism. There is also another feature called proof-of-authority that entails maintenance of the protocol through authority master node operators. They maintain the network based on their interest following rules set down by the VeChain Foundation.
The two major benefits of using dual-token systems are that it allows efficient and effective governance. Good governance that is community inclusive is key to prevent events like hard forks from unsatisfied community members. In addition, a dual-token system enables a blockchain to run an economic model that is predictable. A predictable model is more preferable to investors than a wildly swinging economic model that we see with many crypto projects.
VeChain Working Mechanism
VeChain has its way of achieving its aim of restructuring the supply chain industry by using different types of technology. For example, the protocol employs several types of RFID tags and sensors for monitoring crucial data during the shipping process. This information is broadcasted live over the blockchain network for all to see including the relevant key members and market users. They are able to monitor, verify and authenticate the item in question. This methodology is especially key for supply chains that are complex. Through VeChain, it becomes easier to monitor such a complex supply chain and update companies on every development as they happen.
VeChain Price Prediction: Is It a Worthy Investment for Your Portfolio?
There is a strong crypto bull run going on in the market and most coins have ridden this train to a strong price increase in a short time. Is that also the same for VeChain? How much of a run the coin has to have to be considered as a good investment? Those are some points we are about to touch. First, let’s consider the market capitalization of the VeChain token to give us an idea of how much the coin is rated in the market. According to coinmarketcap, in the first days of May, 2021, VeChain has a market capitalization of around $13,500,000,000, and that easily puts the token in the top 20 performers. It is indeed a remarkable feat given that there are over 1600 crypto projects in the world right now.
So, what are experts saying about this token that you can reason when choosing which token makes the cut for your portfolio. Experts from websites like walletinvestor are tipping the token for a bullish run, which will see the coin rise to serious highs. The token is expected to reach about $0.314 in a year time giving you an earning potential of +65.46% on your investment. In five years, the coin could be a lot closer to $1 with the site projecting it to reach $0.862.
Another forecast website longforecast has an even more bullish prediction for VeChain. They are predicting the token to end December 2021 with a price of $0.63. They expect the token to hit the dollar mark by January 2025.
Opinions from crypto Twitter is also positive about the token. Tweeps like damballah are convinced about holding on to the token as it starts to pick up after a recent price dip. Another user livechannel believes we could reach the $1 mark soon.
— LIVECHANDEL 👁 (@Chandel80385695) April 30, 2021
A quick look at the YouTube crypto space also gives us a bit of an insight into what everyday users and seasoned crypto traders think of the coin. Coinskid believes that if the VET token is able to hold its support, it could pump to reach $0.25 from its current standing. The pump could continue to push the token to $1.5. Here is a link to his full briefings:
Another YouTuber Cryptoprofit believes that VeChain is a good investment owing to some reasons, which he mentioned in his analysis. However, he stressed that with VeChain, it has more of a long-term earning potential than short-term earning potential. That is good for holders but not so good for those looking for short-term or immediate gain. In the sense that it won’t give you huge profit in the short term. Instead, it is the long-term holders that stand to gain the most from the token. You can watch the entire analysis here:
Will VeChain Reach $1?
Then comes the golden question that many asked when investing in VET. Will it ever reach $1? How soon can that happen? Well, according to longforecast, we could have a $1 VET as soon as 2025 that will represent to investors a 1011% gain on their investment by then. Prediction aside, certain parameters like a certain VeChain milestone could even see that happening faster than anticipated. One thing certain about the protocol is that the dev team has a long-term vision for it. That could play a part in a steady climb up the ladder for the token. It could prove to be a good investment for investors and an astute addition to their portfolio in the future.
Will VeChain Ever Reach $5?
No, not on the current market conditions. There is nothing to suggest that the VET token could make a break for the $5 mark. However, should there be a market shift for the token; things could take off differently completely.
Is It Possible For VeChain to Crash?
Bearing in the mind the sector that VeChain is targeting which is the supply chain sector; the use case of the VeChain is very strong. Also, VeChain has strategic partnerships with institutions in China where it is based. All these points at a strong base for VeChain, which makes crashing an unlikely scenario.
VeChain: A Legit Project or Scam?
Given China’s strict monitoring of its tech economy, it is unlikely for a scam coin to survive for long in the Chinese market. VeChain has found a steady footing since it was launched and it has even secured a partnership with China-owned businesses. That is unlikely to happen if it was a scam token. So, VET is very much a legit project.
How to Get the VET Token?
The Vet token is already listed on popular exchanges like VCC Exchange, Binance, FTX, Upbit, Huobi Global, etc. You register on their platforms and get started buying the token to add to your portfolio. The token is freely tradable and there is a market for the other token VTHO as well. So, these are the places where you can catch the VET token frenzy.
Is VeChain a Good Investment? – Conclusion
As a crypto investor, risk calculation is always paramount and this is no different for VeChain. However, the market indicators, as well as the views of the crypto community, are largely positive towards VET. The token is held in high regard and many believe that VeChain is a good investment, which is why it finds itself in the top 20 tokens in the market. Many experts believe that the token will continue to increase in price amid price dip here and there. The strong vision for the VeChain team and the appreciation of the token by its community members suggest that its value will continue to soar.
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