The Ultimate Guide To Investing In Vet Crypto

VeChain (VET) is a blockchain-based platform that aims to streamline supply chain management and product lifecycle processes for businesses. It was founded in 2015 by former LVMH China Chief Technology Officer, Sunny Lu, and ex-PwC senior manager, Jay Zhang. The platform combines technologies such as QR codes, near-field communication (NFC), and radio-frequency identification to create an efficient and secure system for tracking goods and services.

The VeChain blockchain has two tokens: VET, the main payment currency for the ecosystem, and VeThor Token (VTHO), which is generated using VET and used for tracking products.

VeChain has gained traction with its blockchain-as-a-service model, attracting high-profile partners such as Walmart, BMW, and LVMH. Its unique selling point is its ability to provide transparent information flow, efficient collaboration, and high-speed value transfers, making it an attractive investment opportunity for those looking for real-world crypto utility.

VET's real-world utility

VeChain (VET) is a blockchain platform that helps companies solve major supply chain challenges. It was established by Sunny Lu, formerly the Chief Technology Officer at LVMH China, and Jay Zhang, previously a senior manager at PwC. The platform uses blockchain technology, which relies on a decentralised, peer-to-peer digital ledger system.

VET is a "smart contract" platform, which allows two or more businesses to share data and keep records. The platform uses two digital tokens: vechain token (VET) and vethor (VTHO). The tokens are used for storing value, buying, selling, and trading, with VTHO used to pay transaction fees. These tokens have a floating exchange rate with traditional, or "fiat", currency.

VET has a real-world utility for businesses, particularly in the supply chain management and logistics sectors. Companies can use VET to track the movement of their resources and products, and to improve communication within a fully independent blockchain system. This helps to streamline operations, making them more efficient and secure.

VET has been adopted by several major corporations, including PriceWaterhouseCoopers, Renault, and Walmart China. The burgeoning new wine industry in China has also adopted VET to tackle issues with counterfeit wines. Wholesalers and producers now use VET to track and authenticate cases and individual bottles.

VET is also highly popular among investors and traders. The number of VET addresses has jumped to over 1.78 million, and the amount of VeChain mainnet activity has remained stable despite the performance of the coin.

VET's price history and predictions

2015-2017: The Emergence of VeChain

VeChain was founded in 2015 by Sunny Lu, a former IT executive and CIO of Louis Vuitton China, and Jay Zhang, who previously worked for Deloitte and PriceWaterhouseCoopers. In its early years, the average price of VET was relatively low, typical of new cryptocurrencies.

2018-2019: A Volatile Leap

VeChain's market presence took a significant turn in 2018, with a maximum price of $0.019775. However, this period was marked by substantial volatility, with an average trading price of $0.010073 in 2018, dropping to $0.005491 in 2019.

2020-2021: Stability Amidst Adversity

The global pandemic in 2020 brought challenges, yet VeChain's price dynamics displayed resilience. In 2020, the maximum price touched $0.026894, and the average was about $0.010547. 2021 was a landmark year, with the maximum price soaring to $0.2782 (or $0.2842, according to another source) and an average of $0.105065, indicating a surge in investor interest.

2022-2024: Recent Developments and Future Outlook

In recent years, VeChain has continued to evolve. The maximum price in 2022 was $0.095823, with an average of $0.035716. In 2023, the maximum price was $0.038691, and the average stabilised at $0.021182. As of September 2024, VET is trading at around $0.0217 per coin, with a 24-hour trading volume of $10,749,427 to $14,488,382 USD.

Future Predictions:

Predictions for VET's future price vary. Some sources claim it will reach $1 or more, while others provide more conservative estimates.

• WalletInvestor forecasts VET to reach 70 cents per coin in five years.
• Tom Holland of CoinMonks sees VeChain at similar prices and predicts it could surpass $1.
• DigitalCoinPrice predicts a maximum of $0.0625 by December 2025.
• TradingBeasts predicts a maximum price of $0.0671 at the end of 2025, a 200% leap from its current price.
• Capital.com projects a maximum price of $0.0472 by the end of 2025.
• VET is not expected to reach $10 anytime soon, with most bullish predictions settling under $1 for the next eight years.
• By 2030, Capital.com forecasts a price of $0.11, representing a 400% increase over an investment made in November 2022.
• VeChain's price could reach as much as $3 or drop as low as $0.36 by 2030, as it aims to disrupt the supply chain market.

It's important to remember that the cryptocurrency market is highly volatile, and VET's price could fluctuate significantly in the future.

VET's dual-token setup

VeChainThor (VET) is a smart contract platform that uses a dual-token model, consisting of VET and VTHO, to separate the protocol's store of value and gas fee payment mechanisms. This setup ensures that costs remain low and stable, as fee delegation allows smart contracts to pay gas fees on behalf of business users.

The VET token is the main payment currency for the VeChain ecosystem and is used for transactions and other activities. With a high divisibility of 18 decimal places, VET enables microtransactions and precise value representation, making it suitable for IoT applications and complex supply chain scenarios. The total supply of VET is fixed at 86,712,634,466 tokens, creating a deflationary aspect to its economics and allowing for more accurate economic modelling.

On the other hand, the VTHO token is generated using VET and is used by companies to track their products in the supply chain. It functions as a "gas token", providing fee payments for transactions on the network. VET holders automatically generate passive income in VTHO, and 70% of the VTHO used in a VET payment is destroyed. This dual-token system is designed to avoid fee fluctuations and network congestion, ensuring frictionless use of the network.

VET's partnerships

VET has a wide range of partnerships with companies across the world, from China to Europe and the Middle East. These partnerships are a key part of VET's strategy and have been instrumental in its growing adoption.

VET has partnered with some of the biggest companies in the world, including PriceWaterhouseCoopers (PwC), LVMH, BMW, and Walmart. These companies use VET's blockchain technology to improve their operations, particularly in supply chain management and product traceability. For example, LVMH uses VET's blockchain and IoT technology to integrate into its projects, such as Givenchy bags equipped with VET chips to verify authenticity.

VET has also partnered with Direct Imported Goods (D.I.G.), a Chinese government-owned wine importer, to tackle the issue of counterfeit wine bottles. VET's technology will be used to authenticate and trace winery data, using smart NFC chips in wine bottles.

In addition, VET has collaborated with Kuehne + Nagel, the world's largest global freight forwarder, to smartify parcels and assets, especially luxury goods, by adding a chip containing ownership information on the blockchain.

VET has also formed alliances with companies in the automotive, logistics insurance, media, consumer goods, financial services, and e-commerce sectors, showcasing its diverse range of partnerships across multiple industries.

VET's blockchain technology

VET is a blockchain ecosystem designed to enhance supply chain management and business processes. It is an L1 smart contract platform that leverages distributed governance and Internet of Things (IoT) technologies to create an ecosystem that addresses major data challenges for various global industries.

The platform uses two tokens, VET and VTHO, to manage and create value based on its VeChainThor public blockchain. VET acts as the store of value and value transfer medium, while VTHO is used to pay for gas costs. This dual-token system is designed to avoid fee fluctuations and network congestion.

VeChain operates using an identifier system known as VeChain IDs, which are assigned to products and tracked at each step of a supply chain, creating an environment for all parties involved. The platform seeks to provide stakeholders with detailed information about products and business processes, thereby increasing market transparency and making international trade more efficient.

The VeChain blockchain uses a Proof of Authority (PoA) consensus protocol where votes are disbursed based on VET holdings. Only VET holders with certain credentials and 1 million tokens in their account are assigned votes. There are around 100 master nodes responsible for reaching a consensus on transactions in VeChain's blockchain. This PoA system is very different from other blockchains such as Bitcoin, which require all nodes to vote on a transaction before reaching a consensus.

VeChain's platform can be used to track quality, authenticity, storage temperature, transportation medium, and last-mile delivery of a product right from the manufacturing facility through to the final delivery to the end customer. To accomplish this, VeChain uses smart chips or Radio Frequency Identification (RFID) tags and sensors that broadcast key information onto the blockchain network, which can be accessed in real time by authorised stakeholders.

Frequently asked questions