Today, Asia is one of the main hubs of blockchain development. Asia is home to some of the brightest cryptocurrency projects and VeChain is one of them. Imagine you got a bottle of whiskey from your friends and you want to check its originality. Here comes Vechain. In this article, we will explain what VeChain is, how it works, who it has partnerships with and share some price predictions for VET coin for 2019 and 2020.
What is VeChain all about?
The story of VeChain started in 2015 when a group of enthusiasts led by Sunny Lu developed a prototype of a platform that could digitalize goods and products. The first version of the product appeared six months later and in 2017 they unveiled VeChain 2.0.
Today it is one of the most promising blockchain projects with various partnerships onboard and solid technological basis. The team mostly aims at supply chain management and tries to solve the counterfeiting problem which is currently costing companies about $461 bln in losses a year.
They developed technology that digitizes any physical product and stores data about it on the blockchain. The product receives a special number, which is entered in the distributed ledger and the product itself gets an identifier with a microchip, RFID tag or QR code. Thanks to the identifier you can get information about the product’s movement. If we are talking about food, then the consumer will be able to find out by whom, when and where the food was made. In the same way, you can identify cars (mileage, technical specifications and so on) or branded clothing (if it’s original or not).
What is VeChain used for?
Let’s get back to our bottle of whiskey to understand how VeChain works and what it is used for. Thanks to the VeChain tracking system, data on that bottle is collected at every stage of its production and kept on the distributed ledger.
The bottle of whiskey gets a unique product ID and a special tracking vehicle – it can be a QR code or NFC chip. The transportation company sends updated data about the whiskey’s transportation right to the blockchain, so everyone can track the product from the very beginning until it reaches a consumer.
As a result, you can learn a lot of information about the product just by scanning the NFC chip or QR code, including:
- When and where the whiskey was bottled
- When it was shipped
- Where it was shipped
- If it was transported at the right temperature, etc.
Knowing this information, which cannot be changed or falsified, you will be safe from fake/counterfeit goods and products.
The VeChain platform has drawn a lot of attention from various companies, especially Chinese brands. The team has signed an enormous amount of strategic agreements and partnerships. Here are the most notable:
- PwC – VeChain was included in the PwC incubation program in 2017. The program is aimed “to accelerate the application of blockchain in Hong Kong and South-East Asia markets.”
- Walmart China – VeChain is developing “a food safety platform,” where customers can learn about the quality and freshness of products simply by scanning their QR codes.
- Fanghuwang – the Chinese leader in Real Estate Financing Services cooperates with VeChain to improve the collection, management and processing of client data.
- BYD – one of the largest Chinese car manufacturers together with VeChain and DNV GL creates a carbon banking solution for cars, buses, trains, etc. They aim to reduce carbon emission in the atmosphere.
VET value vs VEThor value
Today VeChain has two cryptocurrencies running on their mainnet: VeChain Token (VET) and VeThor (VTHO) which both function as utility tokens. In a nutshell, these tokens can be described as follows:
- VET is used for the creation and utilization of Apps on the platform. When you hold VET you generate VTHO.
- VTHO is used to pay transaction fees. It works like ‘GAS’ which is necessary to use when you want to upload information into the blockchain.
Companies utilizing the technology consume VTHO when performing transactions. That leads to more companies using more VTHO, creating demand for the token which, according to VeChain, will lead to price growth. At the same time, VTHO is generated by VET – so the price movements of both coins will correlate with each other.
However, what would happen if the price of VTHO jumped to $5, for example? The transaction fees will be too high. To avoid this, VeChain will keep the price of VTHO ‘relatively stable,’ within a certain price frame to make the transaction fee acceptable by them and the commercial entities which use the blockchain.
VeChain coin price analysis
Back in 2017 and 2018, VeChain called their cryptocurrency VEN, but on June 2018 they launched their own blockchain and renamed their coin VET. We will analyse the price movements since the dawn of the VeChain mainnet.
The price of VET has an interesting history – in the early days the coin sharply fell from $0.015 to 0.006 just in a few days and then pumped even higher to $0.0197 in September. Currently, this is the highest price the coin has hit and it’s never traded above this point.
However, the bear market got a hold of VET along with most other coins. By the end of 2018, the value of coin decreased to $0.0033.
This year the coin has been gradually gaining momentum and hit $0.08 in August fueled by the announcement of their partnership with Chinese Walmart.
However, the announcement couldn’t sustain VET’s move forward and today the coin is headed back down toward its former price territories. Currently, it is being traded for $0.0036.
VeChain price prediction 2019 & 2020
We’ve put together some different points of view on the future price of VeChain. Here are the main price forecasts:
Digital coin price believes that the price of VET will only grow over time. In 2019 it will reach $0.00578378 and in 2020 it will be $0.00688223.
Trading beasts have a more negative point of view on the future price of VET. They expect VET to cost $0.0129454 by the beginning of December 2019 and expect it to reach $0.0125816 by the beginning of March 2020.
If we take a look at the short-term prediction, Wallet investor gives a strong bearish take on VET for the next few months. Its forecast has VET dropping to $0.000752.
Despite some overall negative price predictions, there are a few facts that put are getting people to put more trust in VeChain’s future. First of all, VeChain has Tim Draper on board as a contributor. FYI he is one of the brightest Silicon Valley figures, and a pioneer in venture capital investing. His most prominent investments include Tesla, Skype, Coinbase, Twitch.tv and Twitter.
What’s more important is that he is a big believer in cryptocurrencies and back in the day he bought a lot of Bitcoins when it was only $6 a pop. Looks like he’s got a good feel for good projects.
One of the main factors driving the price of the cryptocurrency is VeChain’s partnerships. They managed to sign significant cooperation agreements with major companies in China and some international brands. This has brought them a lot of attention from cryptocurrency enthusiasts which has helped keep VeChain relevant today.
Store VET on Freewallet
VET is one of the supported currencies on our multi-currency storage – Freewallet: Crypto Wallet:
- Manage VET and 150+ coins and tokens in a single wallet on iOS, Android or the web.
- Seamlessly exchange cryptocurrencies right in the app.
- Purchase BTC, LTC, ETH, XRP, BCH, BNB and XLM in your wallet.
- Transfer your coins for free within the Freewallet eco-system.
- Monitor the exchange rate with real-time price charts.
- Protect your money with multi-level security with 2FA, multisig and transaction limits. The majority of coins are kept in cold storage. It guarantees that your funds won’t be lost or stolen.
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Disclaimer: This article should not be considered financial advice and serves only as informative material. The cryptocurrency market is subject to high volatility and regulatory uncertainty. You should do a substantial amount of research before engaging in financial activities with cryptocurrencies.