VeChain is one of the most used blockchain platforms globally, and with the recent developments from their site. So we are likely to see one dollar to one VET soon. How soon enough, though?
We will learn well-researched reasons why VeChain will explode and also explore some of the potential price catalysts that could help VET finally reach the one-dollar margin.
One of the things working in VET’s favour is that they have everything going on for them and with altcoins gaining momentum and enjoying more exposure, they are more likely to see a shift of gears.
While people are more interested in both its tokens and the adoption of its blockchain, if you haven’t already observed, VeChain has two tokens VET, and VeThorChain’s economic model is centred on the unique two-token system VET plus VTHO.
According to the company’s website, the reason for this is to separate the cost of using blockchain from market speculation and if you are still pondering on assets less than one dollar to load up. You might want to consider these tokens, especially VET. For those who aren’t familiar with VeChain, here is what you need to know.
It is an Enterprise Blockchain that aims to become a leading platform for initial coin offerings (ICO’s) and conduct transactions between internet of things (IoT) connected devices. In addition, it is designed to enhance supply chain management and business processes VeChain’s goal is to streamline these processes and information flow for complex supply chains through the use of (DLT) distributed ledger technology.
The VET is used to transfer value across the VeChain network, while VTHO is used as energy or gas to power smart contract transactions.
VeChain is domiciled in China, and you should know that Chinese government officials are strongly linked to the blockchain platform. In light of this, it is safe to say that the recent crackdown on bitcoin mining and transactions in China won’t affect VeChain.
We will explain more on this and what it means for VET price movement. The company is also heavily involved in an initiative called carbon credit. We’ll examine the impact of this project on VeChain’s market position. There is more to cover to explain how and why VeChain will explode, so you might want to share this article with a VeChain investor that you know.
How Does VeChain Work?
VeChain is not your regular blockchain project. Instead, it offers users control over the originality of products on supply and gives manufacturers more control over the quality of the goods. To grasp this idea, let’s take a look at a branded bag from the moment it is first made until it reaches the customer’s grip. The bag must have been exchanged between several parties.
The subsisting systems require trust between the hands that the exchanged product is not fake and that there is no tampering in the supply chain for perspective.
The luxury goods industry records a loss of 450 billion dollars because of switching tampering and other reasons VeChain wants to eliminate these risks. It is impossible for an authentic product to be missing in the supply chain or that the user gets a fake product if the product has an intelligent chip that you can track at an immutable ledger that stores all the data.
Since it gives the operators control over the product, it allows for quality control. For example, many perishable products can spoil with the slightest temperature change, but the products can be controlled remotely through VeChain token chips and IoT devices.
Hence giving them better handling. Even though this is the supply chain, it is also most useful for people in the logistics industry. Various companies use their own systems for different products but managing these systems manually is much work.
VeChain smart chips change the game with them. You only need to scan the product to get all the data you need. As a result, the logistics industry can now move past the days of time wastage and painful bookkeeping. With that said, here are the reasons.
Why Do I Think VeChain Will Explode?
1. Its involvement in carbon credit in what appears to be an credible rumour weeks ago, VeChain is now involved in the global carbon credit trading platform. What does this even mean, though? It is a digital carbon ecosystem solution that is both a blockchain and IoT-powered carbon reduction platform. This platform uses economic incentives to encourage both individuals and enterprises to reduce carbon emissions. According to VeChain’s website, as consumers engage in low carbon behaviours, say by purchasing low carbon products, they earn a carbon reduction credit which can be redeemed for benefits from other ecosystem partners.
Such as retailers or even financial providers simply put, a carbon credit is a permit that allows the company that holds it to emit a specific amount of carbon dioxide or other greenhouse gases. This incentive is dedicated to private companies to ensure they have a pollution limit. If a company doesn’t exceed its carbon limit in a particular time, it will be rewarded with tokens that it can use to trade for money or other assets. It is an initiative to make industries across the world more sustainable and environmentally friendly.
How does this affect VeChain?
Because China is set to join the programme and launch its own carbon emissions trading platform in June ending or July 2021. It stands a great chance of benefiting. China is already planning to be carbon neutral by 2060, and even though it isn’t confirmed yet, there are rumours that VeChain being one of the only two blockchain platforms approved in china. It will play an integral role in whatever plans the Chinese government has lined up.
For this, VeChain has already forged a strong link with several Chinese government officials in China’s national five-year blockchain plan. Blockchain tech was significantly mentioned, and more specifically, the VeChain platform popped up in the conversations.
Sunny Lou VeChain’s CEO Tweeted VeCarbon is smart carbon in June 2021, so we already know that they are working together for national development. In addition, VeChain’s recent initiative called My Baby was covered by a government-owned Chinese tv station.
This further hints at their connection. My Baby is an innovative medical care project called the world’s first blockchain-based in vitro fertilization (IVF) service application number. Two buzzing partnerships VeChain has had many partnerships across the board, including in the food supply chain industry. Such partnership is with AIPAC Asia pacific. This is a massive deal for VeChain AIPAC is a cross-continental food supply chain finance consortium, and they leverage on VeChain’s blockchain tech for food safety and traceability.
Since COVID-19 took a heavy toll on food processing, VeChain has stepped in with improved solutions. This isn’t the only high-profile partnership. The VeChain has made Walmart and IBM have struck a partnership with other food companies, and they’ve created the food trust blockchain to track food supplies. VeChain’s proof of authority protocol model makes this possible, and you can tell that it can be a significant price catalyst both in the short and long terms.
2. China’s cryptocurrency crackdown while bitcoin and other altcoins with a positive coefficient correlation with its price are having cold feet because of Shanghai’s recent crackdown on bitcoin mining VeChain looks to be fine but not too fine on its price value.
I guess you already know why by now, VeChain enjoys the privilege of an exception because of its closeness to the Chinese government. This is partly because of its proof-of-authority (POA) protocol that the government sees as beneficial to centralize blockchain tech. I’ll discuss more on this shortly. China has shut down mining banks and advised financial banks to distance themselves from crypto transactions. In addition, the government has banned bitcoin mining. While this has affected the price of bitcoin shortly after the announcement, many analysts think it could be a blessing in disguise for crypto’s most giant coin.
Some of the reasons given include the decentralization of bitcoin mining. New farms running on clean energy will have more incentive to open up around the world. In addition, Chinese banks have been ordered to sever links with crypto-related activities and customers. But how will all these impact VeChains price movements? As we all know, VeChain is a Chinese blockchain platform. It has a very close relationship with the government, so most of the government sanctions on crypto are expected not to affect VeChain, whose platform runs on a proof of authority protocol (POA).
POA makes VeChain more scalable and secure than the majority of other platforms, and it is slightly decentralized. This is because fewer nodes are running and maintaining the network. This is a massive advantage for VeChain considering their relationship with the government who just banned bitcoin because it is decentralized and can’t be controlled.
VeChain has a CEO, and a development team that makes it more transparent. Bitcoin doesn’t have that kind of structure. Some experts are already saying that the Chinese government wants their own unstable coin to be the number one crypto in the country, So they decided against bitcoin. But don’t forget that they’ve banned bitcoin about three times now. Bitcoin is decentralized, so it can’t be outrightly banned.
All these are not to say that VeChain enjoys wide adoption or some other benefits solely because they’re on excellent terms with the Chinese government. VeChain has a fantastic blockchain tech that has been solving real-world problems. This is only just enjoying the perks of its unique protocol. Besides, VeChain is trying and engaging in multiple digital developments. That is why the news on the crypto crackdown and bitcoin mining doesn’t affect them significantly.
We see these developments creating a viable environment for VeChain to be more innovative. Of course, there will be more business opportunities for the platform to expect more growth and a higher VET price. These reasons are why you should start loading up VET. It might be too late if you delay. Please note that the writer of this article is not a financial advisor. This article is only for educational use. If you want to invest in VeChain, please go beyond the findings in this article with your own research. We’re sure you’ve learned a great deal about VeChain, and its potentials in this article.