What is VeChain – VET Coin? Should You Invest in VeChain (VET)?

What is VET coin? Does VeChain have the potential for investment in 2024? This is probably a question for many who are participating in the cryptocurrency market.

In our view, VeChain (VET coin) possesses many factors that make it a good investment at this time. It has enough volatility to create profit opportunities for traders, and it also has the potential to become a valuable asset for long-term investors. Why is this so, let’s delve deeper into understanding VeChain coin (VET coin) in the content of the article below.

What is VeChain?

VeChain is a blockchain platform established with the purpose of leveraging decentralized technology and the Internet of Things (IoT) to develop business applications, mainly in the field of supply chain management: offering the ability to track, quality control, inventory management, and more.
Specifically, VeChain seeks to change the complex traditional supply chain with a more efficient method, the ability to trace origins and transparency in the industry, while reducing operational costs.

The VeChain project was re-launched in June 2018 and has been strongly promoted since then, attracting many partners to join its ecosystem. In fact, there is hardly a month that goes by without VeChain announcing a new partnership or a new business adopting VeChain technology.

How does VeChain (VET) work?

Have you ever looked at a designer label product and wondered if it is genuine?

VeChain is the platform that uses anti-fraud technology to authenticate high-end goods, providing trust for both customers and manufacturers.

Initially, VeChain was designed to prevent the trade of counterfeit goods, but it was then adopted by large companies to simplify the supply chain management process.

So how does VeChain operate? It works on the principle of:

• Assigning a unique identity to each item, you can use sensors to track items throughout their lifecycle.

• By storing tracking information, you can view the entire history of the item, from the production site to the most recent sale point. This means that the authenticity of premium products can be verified.

What is VET coin?

VET coin is one of two main tokens in the VeChain ecosystem. VeChain operates two tokens in all, VeChain (VET) and VeThor (VTHO).

• VeChain (VET coin) is like all other cryptocurrencies, used for speculation on exchanges. Additionally, it can be staked to earn VeThor (VTHO), used to pay for transactions or administration within VeChain.

• VeThor (VTHO) is used to pay for transactions, smart contracts within the VeChain blockchain. The default transaction fee is 21 VTHO ($0.006719).

These two tokens differ significantly in function, total supply, and inflation.

– VeChain’s use of a dual-token model makes the token used for payments within the VeChain ecosystem (VTHO) more insulated from price volatility, making it more suitable for business.

– VeChain conducted its ICO on August 17, 2017, raising 200,000 ETH with tokens priced at $0.0008. At that time, 1 ETH = 3,500 VEN. Note, I mean VEN, not VET.

– Those VEN tokens were initially ERC-20 standard, but they were later swapped for the native VET tokens at a 1:100 ratio, after the VeChain mainnet became operational on June 30, 2018.

• Today’s VET coin price:

VeChain (VET)

$ 0.040189 8.61%

• Why is the VET price so low:

Did you know there are a total of over 86 billion VET tokens maximum, and currently circulating is 80,985,041,177 VET coin.

This means if it reaches a price of $1/token, its market capitalization value would be in the top 3, surpassing Cardano, Solana, Binance and even Ripple. But in reality, its technology is not significantly superior to that of the top cryptocurrencies, so the current valuation is quite appropriate.

Who founded VeChain (VET)?

The team behind VeChain is the VeChain Foundation, an organization established in Singapore, managing and maintaining the project.

Sunny Lu is the CEO of VeChain and one of the founding members of VeChain. Before founding VeChain, he was the CEO of Louis Vuitton China. He has more than a decade of experience working for Fortune 500 companies in IT executive positions.

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Jay (Jie) Zhang is the Chief Financial Officer at VeChain. Following the hack in December 2019, he took full responsibility and was said to have resigned as CFO, although the VeChain website still lists him as the project’s CFO. Before working at VeChain, he worked at Deloitte and also spent over a decade working with PwC.

Kevin Feng is a partner at VeChain and serves as the project’s COO. He has over 12 years of experience working at PwC. His expertise lies in risk assurance and cybersecurity, and he has been instrumental in advancing PwC’s blockchain services.

Jianliang Gu is the CTO at VeChain, hailing from TCL & Alcatel’s R&D center. He has more than 16 years of experience in mobile hardware and software development. He has accumulated over 100 patents in the field of mobile communications.

=> VeChain (VET coin) has a highly skilled and specialized team. This gives us confidence in the future of VeChain, that it will be well-maintained and has robust development plans.

VeChain’s Key Partners

The success of the VeChain project largely depends on how many partners use its platform. And it seems that VeChain (VET) understands this, hence they are always active in establishing partnership relations.

To date, there are over 30 partners with whom VeChain is currently experimenting. And any of these partnerships could lead to breakthroughs and wider adoption of the VeChain blockchain. Among the most notable are:

• PwC: allows VeChain to reach out to many companies across China and Southeast Asia, which is very beneficial in spreading information about VeChain.
• LVMH: VeChain is developing a tracking system for limited edition luxury goods. The violation of copyrights and brands of such products is common, especially in China and Southeast Asia. With VeChain’s technology and LVHM’s reputation, this is a perfect collaboration, beneficial for both parties.
• DNV GL: VeChain has developed a blockchain-based solution they call MyStory. Using this dApp, consumers can learn about the story behind a bottle of wine: from the vineyard, to bottling, distribution, and onto their shelves. All of this is done by simply scanning a QR code on the wine bottle.
• BYD: A Chinese automobile manufacturer where VeChain is researching the treatment of carbon emission imbalance. They are building a dApp that will track and record the emission data of millions of cars, buses, trains, and other vehicles into the public VeChain blockchain.

There are also many other partners. And most recently, VeChain has been active in adding hospitals and monitoring infection risk management related to the COVID-19 pandemic.

⇒ Although VeChain’s partners are still quite few compared to big names like Ethereum, Solana, and EOS…, it’s undeniable that these partnerships contribute greatly to helping VeChain develop and become more widely accepted.

What are the Advantages of Investing in VET Coin?

You need to understand that VeChain has a leading edge in the supply chain industry. There are many projects in the vast ocean of cryptocurrencies and blockchain, but VeChain is certainly one of the more interesting ones. There are a few convincing reasons why the VeChain (VET) project can be a good investment:

• VeChain owns an innovative blockchain: Look at the top 10 cryptocurrencies, and you’ll realize that most offer pioneering technology and breakthrough blockchain-based solutions. VeChain is no different, and its contributions to the supply chain industry may not be noticed immediately but will soon attract widespread acceptance and adoption, pushing the price of the VET token to unprecedented levels.

• Benefits from eNFT and DeFi: VeChain has positioned itself as one of the superior blockchains on which smart contracts for DeFi applications and NFTs for businesses (eNFTs) can be executed. The explosion of these two themes could help promote the popularity of VeChain, moving it towards becoming one of the top cryptocurrencies.

• VeChain is being adopted en masse: Over the past few years, VeChain has formed numerous partnership relations with multinational organizations seeking to utilize the blockchain network to streamline their supply chain systems. Examples include PriceWaterhouseCoopers (PwC), China Unicom, Kuehne & Nagel, BMW Group, LVMH, Renault Group, Walmart China, and H&M. These have helped VeChain’s blockchain become popular, attracting more investors.

What are the Risks of Investing in VeChain – VET Coin?

Although VeChain (VET) has many advantages, it also comes with numerous risks. Below are the two biggest risks you need to be aware of when investing in VET coin.

• Intense Competition: The most formidable competitors are renowned technology companies like Amazon, IBM, and Verizon, which may soon enter the cryptocurrency industry and launch blockchains similar to VeChain. If this happens, VeChain (VET) will gradually lose its position, and the price of VET coin will be affected.
• Market Influence: Overall, regardless of how outstanding the technology is, the price of VET is heavily influenced by the general market. Just one fluctuation impacting the cryptocurrency market or Bitcoin’s price can cause the price of VET coin to decrease significantly.

Should You Invest in VeChain (VET)?

VeChain has had a pretty good price increase this year, and the trend is expected to continue into the next year for the following reasons:

• VeChain is currently one of the most successful blockchain projects in terms of forming partnerships, with dozens of major companies collaborating with it, and this number is expected to increase in the future.

• Like Bitcoin and Ethereum, VeChain can enjoy the advantage of being a frontrunner, as it is the blockchain dedicated to the global supply chain industry.

• VeChain (VET) is well-invested, well-managed, has unique technology, high efficiency, and does not face the daunting scalability issues that some other blockchains do.

• The potential of VeChain (VET coin) lies in the launch of PoA 2.0, and when this update is completed, it will attract more premium customers, and boost the price of VET.

With all the bright spots that VeChain has, it can be assessed that VeChain (VET) is a very good coin for long-term investment.

Although large tech companies like IBM, BMW, and SAP… may penetrate this field, VeChain could be buried if it cannot maintain its current dominant position. However, currently, there is no official information about this competitor of VeChain (VET), so for now, VeChain remains a very potential investment.

Note, even if VeChain develops significantly and the number of partners continues to increase, there is no guarantee that the price of VET will increase accordingly. We can only predict that if VeChain develops, then the VET coin token will become more popular, and its lifespan will be extended.
Evidence is that VeChain always announces new partners, but it hardly affects the price of VET coin. VET still undergoes strong market volatility and remains speculative in nature. Therefore, if you decide to invest, only invest a moderate amount, <5% okay, because the cryptocurrency market is unpredictable.

Above is the information about VECHAIN – What is VET coin. It can be seen that this is a quite useful project with high applicability. Therefore, consider adding VeChain (VET) to your investment portfolio from now on. However, have a smart capital allocation plan. I wish you success with VET coin.