Blockchain is a futuristic technology but companies are already using the tech to solve a plethora of real world problems. One such leader in its space is VeChain. With an increasing list of technological developments and business partnerships around the world, VeChain is the most prominent force that is reshaping the way companies approach supply chain management. Let’s find out what it does and why it has a promising future ahead of it.
VeChain use case explained
VeChain (with ticker VET) is a blockchain-enabled platform that aims to improve the efficiency, transparency and traceability of supply chains. It was built to enhance business processes and supply chain management. By utilizing distributed ledger technology (DLT), VeChain provides consumers and retailers the ability to determine the authenticity and quality of products being bought. From spare part replacements to product source materials and servicing history, VeChain helps in recording and verifying every single piece of data of supply chain movement of a product to make it more efficient and secure. This is useful in two ways: customers know that the product they are seeking is genuine and retailers (such as designer brands) can fight against counterfeits which has grown into a massive market in itself.
VeChain’s native token VET is used to carry ‘smart value’ or money from smart contracts. The token is used for store, transfer of value and similar processes. The token works on a Proof-of-Stake (PoS) consensus mechanism for less computing power expenditure, along with VeChain foundation’s unique Proof-of-Authority feature. VeChain Thor (VTHO) is the other token associated with the ecosystem which is used to pay for transactions on the network.
VET has a maximum supply of 86 billion of which more than 64 billion is already in circulation. It currently ranks among the top 30 cryptocurrencies in the world with a price of around $0.1 per token, with more than $6 billion market capitalization.
Short term technical analysis
VET started 2021 with a price tag of less than $0.02 per token and hit an all-time high of $0.28 in April, giving early investors good returns on their investments.
Source: TradingView, Binance
VET recently rejected off the .382 fibonacci retracement ($0.119) of its July to September run. The rejection was decisive and quick, sending it into a decline of 9%. It is currently trading just around the support level at $0.107, and its 50-day moving average of $0.113. Longer time-frame closes below these levels may trigger further declines. However, it is likely to find strong support at $0.095 and $0.091 – where it has previously broken through on multiple occasions in the past. Those looking to take long positions may consider these as great opportunities for entry.
Partnerships & Future potential
VeChain’s VET token has a promising future considering its solid track record and notable partnerships of the project behind it which include big brands such as PwC, DNV GL, and Walmart China.
This public blockchain has the ability to solve real-world economic problems across a variety of industries which gives it a competitive edge for the future. VET has potential to hit $1 in the upcoming year and hence give substantial returns to investors. Also, VET allows for staking (holding on a wallet as fixed deposit) and gives interest in VTHO ensuring additional earnings for its investors.
Disclaimer: This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.