For this year 2022, Coinaute decided to share with you its top 10 best cryptos. In it, we have included VET, the cryptocurrency of the Vechain project.
In this article, we’ll go into more depth about what we merely touched on in the top 10. The goal is to teach you more about the project and its real-world utility.
What is Vechain?
Before we get into cryptocurrency, it is essential to learn more about the project, what is Vechain and who is behind VET?
Vechain Technology is a foundation created in 2015 by Sunny Lu. Yes, you read that right, Vechain is a foundation and not a company. That is, its purpose is not for profit and, unlike a company, Vechain does not have to be profitable to last. Despite this specificity, Vechain is structured as a company with a very good business model.
The goal of the foundation is to provide companies with blockchain-compatible tracking solutions that are adapted to their business needs. The goal is clear, it is to use the advantage of traceability that blockchain technology allows and adapt it to different business solutions.
From a technical point of view, Vechain was initially installed on the Ethereum blockchain. The foundation then created and switched to its own blockchain in 2018, the Vechain Thor.
VeChain Technology is already established all over the world with international offices in China, France, USA, etc. The foundation has also established partnerships with many multinational companies such as Walmart China, Bayer China, BMW Group…
What is the purpose of Vechain?
As quickly mentioned, Vechain’s goal is to offer traceability application solutions to businesses using blockchain technology..
Vechain is one of the projects that have a real use outside the cryptosphere. The interest of Vechain is to allow the traceability of products or other things, meaning that it allows its partner companies to use a tracking solution.
The interest and the scope of action are immense since its solutions apply to all sectors of activity, from agriculture to the automobile industry and logistics.
For example, in the luxury market, Vechain allows a customer or company to know the authenticity of a product, but also to look at its history in detail: manufacturing, materials, maintenance, renovation. Note that Vechain is already involved in the luxury industry thanks to an important partnership with LVMH, the former company of Sunny Lu.
Vechain’s cryptos: VET and VTHO
The VET formerly VEN is the blockchain’s utility token, it is in some way the store of value for Vechain and its partners. The VEN was launched via an ICO in 2017 where 41% of the tokens were sold to the public.
VTHO is more recent, as it was launched in 2018. It has a more practical use as it is used to pay for transaction fees on the Vechain Thor blockchain. With each transaction, use, and fee on the blockchain, VTHO is burned, thus limiting its number over time.
What is interesting is that stacking VETs allows the production of VTHO. Thus, companies that are partners and use blockchain have every interest in holding at least one of the two cryptos to make the system work.
Buying VET and VTHO
The price of VET is currently hovering around the $0.07 mark. This is a far cry from its recent ATH of $0.27.
With the increasing adoption of blockchain by businesses, it is likely that the price of VET will rise. Thus, to regain its recent ATH, VET would have to realize an increase of almost 240%.
As for VTHO, it has a smaller market capitalization, due to its utility, it is not intended to be a store of value. Therefore, it is ranked much lower, around 180th place and is priced at $0.005.
With a very concrete use, there is almost no doubt that its price should increase with time and why not go for $0.01.
Want to invest in VET and VTHO? Register now on the Binance platform and benefit from reduced registration fees.