VeChain (VEN) is the 29th most valuable cryptocurrency. It’s also gained 256% in the past month, despite the crypto market downturn that we suffered up until a couple days ago. But have you heard much about this one? The VeChain coin has been climbing the cryptocurrency rankings, and its price has grown by 9% today. Here’s what this digital currency is all about, and why the VeChain price journey looks like it’s going to keep soaring.
Note: This company is rebranding as VeChain Thor on February 26th, 2018.
What is the VeChain Coin, Exactly?
The VeChain coin launched back in 2015, so it’s not exactly a newborn. This currency is also part of an actual product that customers are using right now. In the cryptocurrency space, that’s hard to find. The market is full of products and solutions that are still in the planning stage. Some are purely just ideas at this point.
The company behind this coin is a Blockchain-as-a-Service (BaaS) firm focused on the Internet of Things (IoT). But, unlike IOTA (MIOTA), which is centered on machine-to-machine (m2m) transactions, VeChain (VEN) all about authenticity within supply chains.
The idea is that, by using blockchain technology, the authenticity of goods that are purchased can be verified. It’s a system that aims to ensure product quality, but in a decentralized, global network that cuts across industries. Using smart chips, products are tracked throughout their lifecycles.
The chips can also help with quality control, like with agricultural or food product where a change in temperature could affect the goods.
The Second Type of VeChain Token: Thor Power
Other than VEN, there is also a coin in this network called Thor Power. With VeChain THOR, users can power smart contracts and run apps on the platform. The relationship between THOR and VEN is similar to how NEO (NEO) and GAS (GAS) operate.
VEN owners’ base generation rate is 0.00042 THOR per unit of VEN owned, and that’s daily.
Why is VeChain (VEN) Such a Strong Investment?
Well, as we said before, this is as functioning product. And it’s a working product – being used by big corporations already. Check out this announcement:
We are excited to announce that VeChain will partner with Fanghuwang, one of the fastest growing online lending platforms in China with $3.3bn AUM. With this partnership, VeChain Thor solves major problems within one of the largest global industries. https://t.co/2neBmo0yot
— VeChain Foundation (@vechainofficial) January 18, 2018
If the VeChain price surge over the past month isn’t what is convincing investors, it is the other big deals that this company has landed – strengthening its legitimacy each time. They have already struck deals with huge, big-name companies.
Renault is a good example. The automotive giant is using VeChain (VEN) for its automotive supply chain. The biggest luxury wine importer in China, Direct Imported Goods, is also putting its products on this blockchain. On top of that, they partnered with PwC back in May 2017 to work together on ramping up blockchain use in South East Asia.
But one of the most persuasive stories that has driven confidence in VEN has been an endorsement from a powerful investor. Jim Breyer, who is the billionaire CEO of Breyer Capital, let it be known that VeChain coins are in his portfolio. This is a huge boost of institutional confidence in this cryptocurrency.
A reddit user on the VeChain reddit page broke down in very clear terms why the Breyer investment is a great sign.
He is the Chairman of the Advisory Board of Tsinghua University School of Economics and Management. Apparently, that’s like Harvard in China – and Tim Cook as well as Jack Ma sit on the board. Breyer has even been photographed standing next to Xi Jinping.
Jim Breyer one of VeChain's newest investors is front and center of this photo with China's President. Also in the photo off to the sides are Tim Cook, Mark Zuckerberg and Jack Ma. Get excited about VeChain. pic.twitter.com/aDi9RMBWRa
— KingOfCrypto (@TheKingCrypto) January 12, 2018
This guy really knows the Chinese market, and his interest in this coin should continue to be a boon to the VeChain price.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.