A recent announcement made by Walmart China saw a bump in VeChain (VET) prices by over 15%. In terms of market cap, VeChain gained over $100 million after the announcement was made. At the time of writing, the price was readjusting; however, the effect of the partnership with Walmart China has already started being felt.
The news of the partnership sent VeChain’s price soaring | Source: CoinMarketCap
The price bump seen on 25 June came after the partnership was announced at the China Products Safety Publicity Week Traceability System Construction Seminar for 2019.
One of the significant hurdles to food safety is loopholes within the supply chain system. By fixing the gaps, food safety could increase significantly.
The partnership between VeChain, China Chain-Store & Franchise Association (CCFA), PwC, Inner Mongolia Kerchin Co., Ltd., and Walmart is aimed at closing these loopholes by monitoring movement of food products down the supply chain. By combining their various strengths, food safety in the Chinese market can increase.
Walmart China products will be tracked using the Thor blockchain by VeChain. Already, 23 product lines are set to be entered into the tracking system. More products are to be added in the future.
Product tracking via VeChain will involve the use of IoT devices. These devices collect data on the products which are then sent to the Thor blockchain for interpretation. Because of the use of blockchain technology, instances of data manipulation are likely to be rare or ideally none.
With Thor, product tracking improves and subsequently, quality products end up in the market.
What This Means For VeChain
The month of June opened up new opportunities for blockchain and crypto related products. From the announcement of Libra to BTC’s bull run, things are looking up for the crypto community.
For VeChain, the partnership with Walmart China may be its stepping stone to global adoption. VeChain is not new to partnerships having partnered with players in the Chinese tobacco industry to come up with anti-counterfeiting technology for the China National Tobacco Corporation.
With a successful partnership record, the success is a partnership with Walmart China will help put VeChain’s services on the world map.
Walmart China looks to be looking to blockchain for their future operations | Source: Caixin Global
Furthermore, since other brands are also involved in the partnership, VeChain may likely get more partnerships, especially if the venture is successful.
The partnership also comes at a time when blockchain is being validated by several companies. The acceptance of blockchain and cryptocurrency is crucial for the success of the technology.
VeChain is also benefitting in terms of growth in value. The announcement saw their digital coin increase in value by over 15%. The announcement likely sparked interest in the crypto community, which led to the rise in demand for VeChain’s cryptocurrency.
Are Companies Finally Apotion Blockchain On A Wider-Scale?
Facebook, Uber, MasterCard, and now Walmart are all involved in blockchain technology either directly or indirectly. The type of positive response being seen after years of negativity injects new hope in the crypto markets and community.
The trend set by top tier companies such as Facebook is an indication of market acceptance. More companies may opt to partner with VeChain and other blockchain based solutions following Facebook’s footsteps.
Partnerships such as these are encouraging. More companies are willing and ready to accommodate practical blockchain solutions. The market is also responding positively to the partnerships, an indication of investor approval of the ventures taking place. It will be interesting to see how the future of blockchain unfolds.
This article was originally published on Blockspectator.