What's Next for VeChain

What's Next for VeChain

By I-HODL | A Crypto Journey | 20 Sep 2021

On the face of it, VeChain is an excellent project with strong fundamentals and great institutional partnerships. It seems to have an excellent future. It has a low entry price point and with a comparatively low market cap, there is room for it to grow. So why, despite all this good news, has not soared? Further, when will it be listed on Coinbase?

Let's talk about it.

What is VeChain?

VeChain Logo

VeChain is a blockchain platform originally designed to improve enterprise supply chain management.

By utilizing Internet of Things (IoT) devices, utilizing distributed ledger technology, and focusing on logistics such as inventory tracking  and data transfer, VeChain helps companies assure quality and consistency by tracking products along the supply chain from the manufacturer to the consumer and ensuring that the data is stored and communicated in an optimal manner. 

Thus, among other things, VeChain seeks to assure:

  • The tamper proof authenticity of high end luxury brands
  • The service history of automobiles
  • The quality of perishable goods

From Etherium Fork to its own Blockchain

Sunny Lu

Founded in 2015 by former Louis Vuitton executive, Sunny Lu, VeChain was  originally  identified in the media as a subsidiary of China based blockchain company, BitSE.

VeChain began as a modified fork from the Ethereum platform in 2015, but launched its own blockchain in 2018. VeChain is currently governed by the VeChain Foundation.

VeChain's Token System

Until VeChain launched its own blockchain, the Ethereum based VeChain cryptocurrency was known as VEN.

As part of its own blockchain, however, VeChain is powered by a two token system: the VeChain Token (VET) and the VeChainThor Energy (VTHO). Following 2018, the pre-existing VEN tokens were replaced by VET and VEN holders were encouraged to swap their tokens with 1 VEN accounting for 100 VET tokens.

What is the difference between VET and VTHO?

VET is used to store and transfer value on the blockchain. It is used to trigger smart contracts, for voting on changes to the protocol,  and to pay for transactions on  decentralized applications (dApps) on the VeChain blockchain. The VET token can also be staked to generate VTHO tokens.

VTHO is used for executing transactions, powering smart contracts transactions on the blockchain. 

Staking VET

VeChain users can stake their VET to earn passive income in the form of VTHO tokens.

Staking requires you to hold your VET in a network wallet that remains online for a preset time period such as Trust Wallet, the Atomic Wallet and the VeChainThor Wallet. The longer you hold your VET, the more  VTHO you earn.

Quality Assured

Supply chain management using VeChain

RFID tags

When a product is manufactured, it is assigned a QR code with a unique VeChain ID which is stored on VeChainThor and uploaded to the blockchain. As the product moves through the supply chain, smart chips and Radio Frequency Identification (RFID) tags and sensors are used to ensure that information is updated in real time on the blockchain.  This information remains accessible on VeChainThor's ledger.

Friend to the Environment

Proof of Authority

Unlike the proof of work method utilized by Bitcoin, or the proof of stake method utilized by Cardano and a number of other altcoins, VeChain utilizes a consensus proof of authority system. Proof of authority is a variant of the proof of stake system where instead of tokens, network participants stake their identity and reputation. In this system, nodes are certified as authorities by the VeChain Foundation. 

Carbon Conscious Initiatives

Additionally, VeChain has stepped up its carbon conscious initiatives, actively seeking to encourage individual and businesses to participate in the reduction of carbon emissions, offering economic incentives for those who do.

Recently, the VeChain Foundation unveiled its Digital Carbon Footprint SaaS Service, a transparent service for "enterprise users to log key data and integrate it with world-leading third party assurance providers within VeChain’s partnership network. This data can then be later transformed into new kinds of value and improve sustainability performance across the entirety of an organization.”

Further, on its website, VeChain states: "As consumers engage in low-carbon behaviors (say, by purchasing low-carbon products), they earn a carbon reduction credit which can be redeemed for benefits from other ecosystem partners such as retailers or even financial services providers."


Over the past five years, has gathered an impressive partnership list, counting among its partners, PriceWaterhouse Coopers (PwC), Walmart (China), Bayer (China), BMW, and LVMH among others.

In the past, however, there was some controversy about VeChain's list of partners, as some social media users accused the organization of being less than truthful or inflating the partnership deals it claimed with large organizations. You can read up on some of those allegations here and the response here.

More recently, VeChain is facing strong competition.


In addition to other players in the cryptocurrency space, VeChain faces strong competition from traditional players, including global forces such as IBM and SAP, both of whom are seeking to offer supply chain management solutions utilizing blockchain technology. 

Why isn't VET pumping?

VET monthly chart


Though there is no disputing that VeChain offers a powerful and proven use case for transforming supply chain management using blockchain technology,  its token is yet to take off. Today, VET ranks in the top 30 cryptocurrencies globally based on market capitalization and is trading for $0.096. Unfortunately, despite its low price point, real use cases, powerful partnerships and excellent staking opportunities, the token  has shown limited growth over the past quarter when a number of other altcoins attained new all time highs.

So, guys, I'm not going to say I'm not disappointed, because I am. I understand that you can never time when a coin is going to take off, but I had at least expected that the VET would have been making bigger moves this year. 

The More Things Change...

Way back in 2018,  Seco (@CryptoSeco) on Twitter stated: "Vechain price does not pump on good news anymore, at least short-term. They announce the best partnerships possible, and we see a 1% increase. They could announce a partnership with Jesus and it would still not pump."

In 2021, reading this quote and contemplating on VET's performance to date, I'm reminded of the French writer, Jean-Baptiste Alphonse Karr who wrote in 1849, “Plus ça change, plus c'est la même chose“ – the more things change, the more they remain the same. 


Be that as it may, I'm buying the dip. I am still pretty gassed up about VET.  I believe in the project and I will continue to hope that it will one day gain more mainstream investor confidence to give the price more momentum. 

So guys, how do you feel about the VeChain project? Do you hold a bag of VET? 

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Navigating the ebbs and flows of crypto trading, and writing about it.

A Crypto Journey
A Crypto Journey

There's nothing more exhilarating than navigating the ebbs and flows of crypto trading. I have sea legs today, but truth be told, I've been lost at sea more than I care to remember and I have weathered quite a few storms as a trader. But the crypto-verse has also rewarded my resilience, and so after every dip, I get right back to sailing in pursuit of me buried treasure. I love this digital evolution and am proud to be a part of it. These are the tales of a crypto adventure! 

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